Chapter 6- formation of a contract- offer and acceptance .docx

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Chapter 6- formation of a contract- offer and acceptance Nature of a contract:Contract- a legally binding set of promises between two or more partiesFour requirements of a legally enforceable contract:1. Offer2. Acceptance3. Consideration4. Intention to create legal relationsThe nature of an offerOffer: a description of a promise one party is willing to make, subject to the agreement of the other partyOfferor: the party making the offerOfferee: the person to whom the offer is make Offer VS. invitation to treat-an invitation to do business is NOT an offer and is not capable of forming a contact-invitation to treat:offer to public to begin the bargaining process -> not intended to create a legally binding contractfacts to consider:-language used-are words appropriate to a promise-addressed to a particular individual or a large number of people-definiteness of the proposalAdvertisements:generally not considered contracts- mere invitation to the public to visit a place of business (ex. 50% off)WHY?-limited supply of goods- cannot be expected to sell goods to everyone who reads the advertisement-cannot precisely predict the number of readers who will be seriously interested-business would be liable for breach of contract to those who accepted and they to whom it could not supply the advertised goods-however, sometimes advertisements can be treated as offers if certain conditions are metThe communication of an offer-an offer must be heard and understood (knowledge)-offer can be communicated verbally or in writing- the form is less important (ex. “I offer to sell you my car for $2500,” “I will sell you my car for $2500”- all mean the same thing-may also be by conduct (ex. taxi driver opening a door, auction bid)

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