MGMT 108 Chapter Notes - Chapter 30: Option Contract, Contract
Document Summary
A contract requires agreement- when the parties agree on the terms of the contract and express their agreement to the same bargain. Agreement is evidenced by an offer and an acceptance- not always. Generally, the contract creates enforceable rights and duties in writing between the parties. A party"s words and conduct are held to mean whatever a reasonable person in the offeree"s position would think they meant. An offer is a promise or commitment to do or refrain from doing some specified action i the future. Three elements for an offer to be effective: 1. Serious intention to become bound by the offer. This is judged by what a reasonable person in the offeree"s position would conclude that the offeror"s words meant. Offers made in obvious anger, jest, or undue excitement do not meat the serious and objective intent test. An expression of opinion is not an offer.
