Chapter9slides - Chapter 9 Chapter Agreement and...

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Unformatted text preview: Chapter 9 Chapter Agreement and Consideration Agreement Agreement • Offer + Acceptance • Offer issues – Offer reqs. Met? – Offer still open? – Has it terminated? • Acceptance – Acceptance reqs. Met? Offer-3 basic reqs. Offer-3 • Objective intent – Does offeror intend to be bound? – Not if • Jest • Anger • Exploratory questions Offer-3 basic reqs. Offer-3 • Terms reasonably definite or certain – Cannot be too vague – OK if some details missing – Examples • “…for a good price” • “…I’ll do some painting for you” Offer-3 basic reqs. Offer-3 • Communicated to offeree – Not effective to offeree receives – Reward not due if finder did not know of Reward reward reward – Only the specific offeree(s) can accept Special Offers Special • Advertisements—Not offers – Invitation to deal – Contract law: no need to honor ad price – …but statutes now require it • Very specific ads are offers • Car ads with stock numbers are offer, Car but for only one car but Offeree’s Options Offeree’s • Offeree can: • Accept—forms contract – Neither can later back out • Reject—kills offer – Offeree cannot later accept • Counteroffer – =Rejection + new offer How does offer die? How • Offeree rejects or counteroffers • Offeror Revokes Offeror Revokes • Lapse of Time – Stated….or if not, reasonable • Subject matter destruction • Death or incompetency • Supervening illegality Acceptance Acceptance • Unequivocal • Must be identical to offer – Mirror image rule – Any change in terms = no acceptance • Counteroffer or rejection Effective times Effective • Offer—when received • Acceptance—when sent – Mailbox rule – Yes, effective even if lost – Offeror has uncertain period – Can modify in offer • Rejection—when received • Revocation– when received Counteroffer Example Counteroffer • • • Dealer says “I’ll sell this car for $8,500.” Buyer: “I’ll give you $8,000.” Dealer “There is a mistake, that car Dealer should sell for $10,500, but we must let you have it for $8,500.” you • What is wrong here? Consideration Consideration • Each party must have something at Each stake in the arrangement stake • Each party must suffer a “legal Each detriment” (Be worse off in some way) detriment” – New legal duty – Giving up an existing right • Detriments: bargained for Consideration example Consideration • Hamer v. Sidway p. 266 – “iif you don’t drink, smoke, cuss, play pool f or cards till you are 21, I’ll pay you $5000” or – Consideration? Does each suffer a Consideration? detriment? detriment? Consideration examples Consideration • Two elderly people move in together in Two his house, sign agreement, where each gives up the right to boot the other out gives – He tries to kick her out • Hostage in prison riot agrees not to Hostage prosecute his captor if released prosecute Consideration issues Consideration • Pre-existing duty – Party was already obligated • Due to job • Due to contract • Past consideration – Violated “bargained for” aspect – Second promise is a gift promise • Illusory Promises Addn’l Consideration issues Addn’l • Moral Obligations • Accord and Satisfaction – For legitimate disputes, agree to change For terms to settle the dispute terms • Releases – E.g. accepting insurance settlement check Promissory Estoppel Promissory • Fairness: Promises without Fairness: consideration will be enforced if: consideration – Promise – Justifiable reliance – Reliance substantial – Injustice if promise not enforced • Usually the last chance argument ...
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