business-law-final-version

business-law-final-version - Mgmt. 108 Project #1 Kimia...

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Mgmt. 108 Project #1 Kimia Ghalambor, Lian Kimia, Daniel Aeina, Kate Berger 1. Richards initially contacts Flowers to inquire . Flowers then responds with an invitation to negotiate, saying “I expect to receive…”. He does not make an offer or clearly state that he will sell the Lot to Richards. He could potentially sell to someone else at a price higher or lower than $400,000. When Richards responds “Have agreed to buy”, he makes an offer to buy Flowers’ Lot for $400,000 in cash. However, one of the four requirements to have a valid contract, agreement, is not met. Although the offer exists, Flowers does not unequivocally accept the offer. Silence on Flowers’ part does not constitute acceptance. Moreover, for a contract to have been formed, the terms must be “sufficiently definite”, which they are not. Although there is identification of the parties, object, and consideration, no exact time of payment, delivery, or performance that is clear. Therefore, contrary to Richards’ beliefs, Flowers’ intent to form a contract is not clear and no contract is formed. 2. There are four requirements for a contract to be valid: consideration, legality, contractual capacity, and agreement. Because EZ Carpet never agreed to the offer, agreement is lacking and no contract is enforceable. An advertisement is not an offer unless it makes a promise that is definite in character. The advertisement is an invitation to negotiate. When Harry mails the
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This note was uploaded on 03/07/2010 for the course MGMT 108 taught by Professor Guerin during the Spring '08 term at UCLA.

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business-law-final-version - Mgmt. 108 Project #1 Kimia...

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