Chap 11-The Agreement- Offers and Acceptances -- blaw study guide

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MEETING OF THE MINDSparties form a contract only if they have a meeting of the minds-one side must make an offer and the other must make an acceptance-an offer proposes definite terms-an acceptance unconditionally agrees to themcourts make objective assessments when evaluating offers and acceptances-ex) will not look inside persons head when they made handshake-look at it objectively - decides how reasonable person would interprether words/conductOFFERbegins with offerofferor = person who makes offerofferee = person he makes offer withtwo questions determine whether a statement is an offer:-do the offeror’s words/actions indicate an intention of make a bargain-are the terms of the offer reasonably definiteSTATEMENTS THAT USUALLY DON’T AMOUNT TO OFFERS-invitations to bargains: an invitation to bargain is not an offer-ex) Martha leaves Joe message asking if he will sell his lake home-Joe faxes her signed letter back saying he would never sell for less than 150k-Martha sends Joe a check for that amount-Does she own condo? NO - not an offer-it was an invitation to negotiate-he indicates he might be happy to receive offer on condo from Marthabut he is not promising to sell condo for $150k or any amount- PRICE QUOTES-price quotes: generally not an offer-page 253 in book- LETTERS OF INTENT-letter of intent: letter that summarizes negotiating process- ADVERTISEMENTS-do not make an offer 95% of the time-when an offer (5% of time???)-unilateral because performance-advertisement is merely a request for offers-consumer makes offer -ex) arriving at store ready to beseller = free to reject the offer-advertisers need to be careful to not be too specific in their ads b/c some ads can count as offers
-ex) carlill v. carbolic smoke ball company (PAGE 255)-consumer protection statue: outlaws false advertising-almost every state has- AUCTIONS-placing an item up for auction is NOT an offer, it is merely a request for an offer-the BIDS are the offers-if and when the hammer falls, the auctioneer has accepted the offer-important to know about particular auction = conducted with/without reserve?-most auctions are WITH reserve-means that the items for sale have a minimum price-the law assumes that an auction is with reserve unless the auctioneer clearly states otherwise -the auctioneer will not sell anything for less than its reserve (minimum price)-rules are different for auctions WITHOUT reserve-no minimum price-once first bid is received, the auctioneer must sell the merchandise to highestbidderPROBLEMS WITH DEFINITENESS-not enough that the offeror indicates that she intends to enter into an agreement-the terms of the offer must also be definite-if they are vague, then even if the offeree agrees to the deal, a court doesn’t have enough info to enforce it and there is no contract-ex) offering friend job-you say “i offer you a job to be sales clerk during holiday season. we will

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