Midterm review.docx - Chapter 6= Formation of Contract...

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Chapter 6= Formation of Contract: Offer & AcceptanceContract: A contract is a legally enforceable promise.Types of Contracts:Legal Enforceable: We can sue somebody if they don’t live up to there deal.Non- Legal enforceable: 3 Basic Requirements to form legally enforceable contractOffer, Acceptance, ConsiderationContract exist when an offer has been made by 1 part & is accepted by the other party.1.Offer:Description of a promise of 1 party is willing to make, subject to the agreement of the other party.oOfferor:person making the offer; giving the offer.oOfferee:person to whom the offer is made; receiving the offer. Has the power of acceptance?Offer: Sufficient enough to be an offer? Look at the offer and decide if its reasonable. Look at the language, is it appropriate to say it’s a promise.Offer (Auction; bids/offer): advert specifies there is 5 things in a store then its an offer than an invitation to treat.Invitation to Treat: Willingness to do business on certain terms. (advertisement about a product) eg: willingness to do business on certain term.If I buy the product and take it to cashier than there is an offer not invitation to treat.A mere invitation to do business is not an offer capable of forming a contract.Communication of the offer can be oral, written or by conduct without words. Offeree must be aware of the offer before acceptance.Basic Rules applied when we offer:Knowledge of an offer before u can accept it.Required notice of terms (See back of ticket)Lapse: no time specify then offer will lapse. Reasonable period of time (Determination). Should specify how long the offer is on before it lapse. Lapse = termination of an offer when offeree fails to accept it within a specific time, or if no time is specified then within a reasonable time.Revoking an offer; offeror can revoke the offer. But it is only in effect when u learn of it, then we can say it has been revoked, if the rejection receives before the acceptance it is valid otherwise its not. An offeror maybe able to revoke (that is withdraw) an offer at

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