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Chapter 11 AGREEMENT Suggested Additional Assignments Bob and Katrina: Lets Make a Deal The chapter opens with a page of dialogue. Bob, a movie director, and Katrina, an actress, believe they have formed a contractbut what are its terms? Divide students into two groups and have one group write a brief contract capturing the deal from Bobs perspective, and the other write a brief contract capturing the deal from Katrinas perspective. In class select two representatives from each group to act as lawyers for Bob and Katrina, respectively. Tell them they are meeting to hammer out the terms of a deal based on what their clients told them and must try to agree on what those terms are. Drafting: A Letter of Intent Businesspeople use letters of intent frequently, although lawyers often urge otherwise. Have students draft a letter of intent that arguably doesand arguably does notcreate a binding deal for some transaction within the students experience such as renting an apartment, buying a car, or booking a charter flight for spring break. The students should be able to explain the nature of the ambiguity and how to remedy it. Chapter Overview Chapter Theme A valid offer creates a power in the offeree to create a contract by agreeing to its terms. The law determines whether a person intended to make an offer by looking objectively at all of the facts and circumstances in which it is made. The law of offer and acceptance is premised on the common-law concept of meeting of the minds, in which an offeree understands and accepts an offer on the same terms as the offeror. Vagueness or ambiguity in an offer or acceptance guarantees problems and may lead to litigation. The executive or consumer who articulates to herself precisely what she wants, and then bargains clearly for it, is likely to spend more time doing business and less time in court. Quote of the Day It takes two to speak the truthone to speak and another to hear. Henry David Thoreau (1817 1862), American philosopher. Offer As the text notes, an offer is an act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms. Sometimes we forget that by making a valid offer, we give that power to the other person. Sometimes corporate officers forget the point. Nationwide Mutual Insurance Company wanted to energize a regional meeting, so it announced a contest for the best company slogan, to be used at the convention. Heres what you could win: His and Hers Mercedes. An all-expense-paid trip around the world. Additional prizes to be announced. (All prizes subject to availability.) David Mears and 184 other employees entered. Mearss slogan, At the Top and Still Climbing, was the winner. One company officer told Mears that he had won the two cars, while another one said that the cars were just a joke. Ultimately, Nationwide informed Mears that the prizes were never meant seriously. meant seriously.... View Full Document

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