Chapter 11 - Outline

Chapter 11 - Outline - Chapter 11 Agreement 1 Requirements...

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Chapter 11: Agreement 1) Requirements of the Offer: a) Offer: is a promise or commitment to do or refrain from doing some specified thing in the future. b) 3 elements necessary for an offer to be effective: i) The Offeror must have a serious intention to become bound by the offer. ii) The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract. iii) The offer must be communicated to the offeree. c) Intention i) A serious intent on the part of the Offeror. (1) Serious intent is not determined by the subjective intentions, beliefs and assumptions of the Offeror. (2) A party’s word and conduct are held to mean whatever a reasonable person in the offeree’s position would think they meant. ii) Expression of Opinion (1) An expression of opinion is not an offer; it does not indicate an intention to enter into a binding agreement. iii) Statements of Future Intent (1) A statement of an intention to do something in the future is not an offer. iv) Preliminary Negotiations (1) A request or invitation to negotiate is not an offer (2) It only expresses a willingness to discuss the possibility of entering into a contract. v) Agreements to Agree (1) Agreements to agree to the material terms of a contract at some future date were traditionally not considered to be binding contracts. (2) Modern view is that agreements to agree may be enforceable agreements if it is clear that the parties intended to be bound by the agreements. vi) Advertisements, Catalogues, Price Lists & Circulars (1) In general, are treated not as offers to contract but as invitations to negotiate. (2) However, this does not mean that an advertisement can never be an offer. vii)Auctions (1) In an auction, a seller offers goods for sale through an auctioneer but this is not an offer to form a contract. (2) This is rather an invitation asking bidders to submit orders. (3) The offer is accepted when the auctioneer strikes the hammer. d) Definiteness of Terms i) An offer must have terms that are reasonably definite so that, if it is accepted and a contract formed, a court can determine is a breach has occurred and can provide an appropriate remedy. ii) Generally must include: (1) The identification of the parties (2) The identification of the object or subject matter of the contract (3) The consideration to be paid
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(4) The time of payment, delivery, or performance e) Communication i) The offer must be communicated to the offeree 2) Termination of the Offer a) Termination by Action of the Parties i) Revocation of the Offer by the Offeror (1) Revocation:
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