Chapter 11 - AGREEMENT Agreement: A meeting of two or more...

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AGREEMENT Agreement: A meeting of two or more minds in regard to the terms of a contract, through offer and acceptance . Offer: A promise or commitment to perform or refrain from performing some specified future act made by the offeror. The offeror must seriously, and objectively, intend to perform or refrain as offered. The terms of the offer must be reasonably certain or definite . The offeror must communicate the offer to the offeree. Acceptance: A voluntary act by the offeree – either in the form of words or of conduct – which indicates agreement to the terms of the offer. The acceptance must be unequivocal and must be communicated to the offeror. Ch. 11: Contracts: Agreement - No. 1 Clarkson et al.’s Business Law (11th ed.)
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A third party, other than an agent acting on behalf of the offeree, generally cannot substitute itself for the offeree and accept the offer. Ch. 11: Contracts: Agreement - No. 2 Clarkson et al.’s Business Law (11th ed.)
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INTENT TO OFFER A variety of common statements related to business transactions are not offers, including: expressions of opinion ; statements of intention ; preliminary negotiations ; agreements to agree to one or more material contract terms or conditions at some later day; and auctions and other invitations to bid, negotiate, or contract, including most forms of advertisement . Ch. 11: Contracts: Agreement - No. 3 Clarkson et al.’s Business Law (11th ed.)
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DEFINITENESS Generally, an offer must include the following terms, either expressed in the contract or capable of being reasonably inferred from it: (1) the identity of the parties to the offer; (2) the identity of the object or subject matter of the offer, including, e.g. , quantity of goods, work to be performed, specific identity of unique goods, etc.; (3) the consideration to be paid; and (4) the time of payment, delivery, or performance. An offer may invite an acceptance to be worded in such specific terms that a contract is made definite by the acceptance. A court may supply one or more missing terms if the parties have clearly manifested their intent to form a contract. However, if the parties have clearly failed to agree on a particular term, a court generally will not supply a reasonable term in its stead. Ch. 11: Contracts: Agreement - No. 4 Clarkson et al.’s Business Law (11th ed.)
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REVOKING AN OFFER Revocation: The withdrawal of an offer, communicated to the offeree or its agent prior to the offeree’s acceptance. Unless an offer is irrevocable , the offeror may revoke without liability an unaccepted offer. Examples of irrevocable offers : option contracts , under which the offeror, in exchange for valuable consideration from the offeree, cannot revoke her offer for a stipulated time period during which the offeree has the sole right of acceptance. The offeree must give the offeror
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This note was uploaded on 01/25/2011 for the course BLAW 3361 taught by Professor Bl during the Spring '10 term at Texas Brownsville.

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Chapter 11 - AGREEMENT Agreement: A meeting of two or more...

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