Chapter11(1) - Chapter 11- Agreements: Offer and Acceptance...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11- Agreements: Offer and Acceptance Opening Case page 256-257 Read to class 1. Do Bob and Katrina have a contract? 2. If so, what are the terms? Bob: Katrina’s fee is $2.5 million. Katrina has to perform nude scenes. Katrina will earn the “usual percentages.” Katrina: Katrina’s fee is $3 millinon. Katrina does not want to perform nude scenes. Katrina wants to talk to her agent before formalizing an agreement. The question arises, especially in verbal contracts, “How does the court know that a contract was formed? Did the offeror and offeree actually agree to the terms of the contract?” So the court established certain requirements for each element to further prove that a contract existed. The first element to look at is the OFFER. Requirements of an Offer: 1. Serious Intent, 2. Clear/Reasonably Defined Terms and 3. Communication to an Offeree i. Problems with Intent: 1. The offeror’s word (written or spoken) must give the offeree assurance he wants to enter into a binding agreement; that he is serious A. Invitations to Bargain: Definition: An invitation to bargain is not an offer. Example: Martha calls Joe and leaves a message asking Joe if he is interested in selling his condo. Joe faxes a signed letter stating, “There is no way I could sell the condo for less than $150,000.” Is this a valid offer or an invitation to bargain? Does Martha now have to buy the condo for $150,000? Answer: Joe is merely indicating that he would be happy to receive an offer from Martha. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What if Martha promptly sent Joe a check for $150,000? Does she now own the condo? Answer: No, because Joe’s response was not an offer, it was an invitation to bargain. What language would we need to show that Joe intended to sell Martha the condo for $150,000? Joe faxes: I am happy to sell you the condo now for $150,000. Price firm. Closing in 30 days. Offer expires in 24 hours. It is now clear that Joe is ready, willing and able to enter into a contract with Martha. His words show that he intended to make a valid offer. Example # 2: “I am looking to purchase a new business and I love what your business stands for.” Here, the offeror does not indicate that he is willing to pay for this business at all, and especially not at that moment. Why? Answer: There is nothing to indicate that he has the funds to purchase the business, or that he wants to go into THAT business or when he would like to purchase a business or what type of business he would like to purchase. REASONABLE RELIANCE: Would it be reasonable to conclude, under these circumstances, that the statement is a promise to buy the business? Answer: No. If the person selling the business did conclude that this was a promise and serious intent to purchase the business, that conclusion would be unreasonable. Any expenses or detriments he suffered as a result of that reliance would not be reliance damages. He would have to suffer the loss. B. Price Quotes:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 11

Chapter11(1) - Chapter 11- Agreements: Offer and Acceptance...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online