Ch 10 Mutual Assent (got 96%)

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Business Law
BLAW 3201
All Professors

Ch 10 Mutual AssentEssentials of an offerDefinition indication of willingness to enter into a contractCommunication offeree must have knowledge of the offer and the offer must be made by the offoror to the offeree Ex Andy writes a contract to mail to John Andy leaves and without prearrangement John entersHe reads the contract and signs itNO contract is formed bc Andy never communicated it to JohnEx 2 Larry offers ring to Andy for 600 dollarsAndy tells Diane of offerDiane asked Larry to buy the ring for 600 NO contract bc it was never communicated to Diane by LarryEx 3 If you complete something and there is a reward for it you cant accept reward bc you had no knowledge of it at the timeIntent determined by an objective standard of what a reasonable offeree would have believedrdEx Dan after his monthold Cadillac breaks down for the 3 time in two days screams in disgust I will sell this car to anyone for 10Lisa hears this and hands her a ten dollar billNO contact bc Lisa should be able to reasonably know that this was just an utterancePreliminary negotiations A statement that may indicate a willingness to make an offer is not in itself an offer ExIf Terri writes to Sue Will you but my automobile for 3000 and Sue replies Yes no contract existsTeri has not made an offer to sell her car to Sue for 3000The offoror must manifest an intent to enter into a contract not merely a willingness to enter into negotiationAdvertisements A merchant might refrain from making offers by merely announcing he has goods for sale describing the goods and quoting pricesHe is simply inviting his customers and in the case of published advertisements the public to make offers to him to buy the goodsThey are not offers bc 1 they do not contain a promise and 2 they leave unexpressed many terms that would be necessary to the making of a contractAuction Sales The auctioneer at an auction sale does not make offers to sell the property that is being auctioned but invites offers to buyA contract results from the fall of the hammerA bidder is free to withdraw his bid at any time prior to acceptanceA retraction does not revive any previous bidThe auctioneer is free to withdraw the goods from sale unless the sale is advertised or announced to be without reserve Definiteness offers terms must be clear enough to provide a court with a basis for giving an appropriate remedy Should include the subject matter price quantity quality terms of payment and duration
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