Agreement Offer and Acceptance

1. AgreementOffer and Acceptance Chapter 2

2. Offer • Offer: A promise or commitment to do or refrain from doing some specified thing in the future. Offer must: • 1. Indicate a present and serious intent to be bound. • 2. Be reasonably certain and definite and contain the material terms of the agreement. • 3. Be communicated by the offeror to the offeree.

3. Offer • Intention: • Objective intent • Expression of opinion is not an offer. • Preliminary negotiations • Advertisements Auctions • Material Terms • Terms which will allow a court to determine the obligations of each party and determine a remedy in the event of a breach.

4. Offer • Communication • 1. Offer must be communicated by offeror or offeror’s authorized agent. • 2. Offeree must be aware of offer when he/she accepts the offer.

5. Termination of Offer • By action of the parties: • Revocation • Option contracts • Detrimental Reliance • Rejection • Counteroffer

6. Termination • By Operation of Law: • Lapse of time • Destruction of subject matter • Death of incompetence of either party • Supervening illegality

7. ACCEPTANCE • Mirror Image Rule • Acceptance must be the mirror image of the offer. (exactly the same as the offer). • Any different or additional terms will be a counteroffer which will terminate the offer resulting in no contract

8. Acceptance • Acceptance is effective when sent • “Mailbox Rule”, also known as the “Dispatch Rule” or the “Deposited acceptance Rule.” • Rule does not apply if: Authorized means of communication is not used Dispatch is defective (i.e. insufficient postage) Offer requires receipt Prior rejection sent