Case Study 1

Case Study 1 - 1. When Richards wrote to Flowers wanting to...

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1. When Richards wrote to Flowers wanting to buy his lot, he made an offer with a condition to deal with him directly. Flowers replied with a counter-offer to meet Richards’ condition if he will buy his lot for cash only. Richards accepted Flowers’ offer. For an offer to be effective, three elements must be met: 1) The offeror must have a serious intention, 2) The terms of the offer must be reasonably certain and 3) The offer must be communicated to the offeree. In our case, we can assume that Flowers had a serious intention when he send the letter to Richards stating that he is agreeing to deal with the buyer directly and stated the price he expected to receive. However, his reply could be interpreted as an invitation to negotiation rather than an offer; using “expect to receive” rather than “I will sell” gives this letter more of a negotiating tone. 2. An add in the paper is not an offer, it’s an invitation for an offer. When Harry mails the letter inquiring for the services, he makes an offer. However, EZ Carpet fails to
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