Forming Contractual Relationships Ch 6.docx

5 Pages
86 Views

Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 2275A/B
Professor
Frederick King

This preview shows pages 1 and half of page 2. Sign up to view the full 5 pages of the document.
Description
Forming Contractual Relationships 10/1/2012 12:04:00 PM Chapter 6 An Agreement  Before a contract can take place, the parties must be in agreement  The agreement then takes the form of offer and acceptance Offer  Offer – a promise to enter into a contract on specified terms as soon as the off is accepted o Certainty of offer – all essential terms must be set out or the contract will fail for uncertainty  Invitation to Treat o An offer is different from a communication that merely expresses a wish to do business o Invitation to treat – simply a willingness to do business  Advertisements in retail stores are invitations to treat  Display of goods – invitation to treat  Customer takes item to cash register – offer to purchase at sticker price  Clerk takes payment – acceptance of offer o Standard form contract – “take it or leave it” contract, where a customer agrees to a standard set of terms that typically favors the other side o A contract is formed only when a complete offer is unconditionally accepted by the other side o Offeror – person who makes the offer o Offeree – the person to whom as offer is made  Termination of Offer o An offer can be accepted only if it is “alive” o An offer can be terminated or “taken off the table” by any of the following events:  Revocation  With drawl of an offer  The offeror can revoke his off at any time before acceptance by notifying the offeree  Case: Bigg v. Boyd Gibbins Ltd. 1971, C.A.  Negotiated for the purchase and sale of real estate by the plaintiff to the defendant  Defendant denied a contract was made although wrote “I accept your offer” in a letter to the plaintiff  Court sided with the plaintiff, saying a contract had been made  Case: Dickinson v. Dodds 1876, C.A.  Dodds informed Dickinson he was selling his property and that it would be open for acceptance until 9 am on the Friday  Dickinson delivered an acceptance to Dodds at 7 am on the Friday morning, but Dodds said he had already sold it  Court sided with Dodds – although he said the offer was open until Friday morning, that did not bind Dodds to wait for an answer from Dickinson  Lapse  Expiration of an offer after a specified or reasonable period  Lapse in one of two ways:  Contract may contain a date upon which it expires  If there is no expiry date, the offer will remain open for a reasonable period of time  Rejection  The refusal to accept the offer  Counteroffer  The offeree is turning down the offer and proposing a new offer in its place  Death or insanity Acceptance  When an offer made by one party is unconditionally and unequivocally accepted by the other party, a contract is formed  Communication of acceptance o In order to effect legal acceptance, the offeree must communicate, by words or conduct, an unconditional assent to the offer in its entirety o If an offer requires a specific method of communicating acceptance, the offeree must use that method o Case: Lowe Ltd. v. Upper Clements Family Theme Park Ltd. (1990) (S.C.T.D.)  Bougie wanted to lease a crane to construction on the theme park, but Lowe didn’t want to agree to the length of the terms  Buxton, the theme park’s general manager, sent Lowe a
More Less
Unlock Document

Only pages 1 and half of page 2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit