Chapter 13 - Formation of Contracts -- Offer and Acceptance

Chapter 13 - Formation of Contracts -- Offer and Acceptance...

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Chapter 13 – Formation of Contracts: Offer and Acceptance I. Requirements of an Offer a. Contractual Intention i. To make an offer, the offeror must appear to intend to create a binding obligation 1. Invitation to Negotiate: a. An advertisement in a newspaper is ordinarily considered an “invitation to negotiate” and is not an offer that can be accepted by a reader of the paper 2. Agreement to Make a Contract at a Future Date: a. No contract arises when the parties merely agree that at a future date they will consider making a contract b. Definiteness i. An offer, and the resulting contract, must be definite and certain 1. If an offer is indefinite or vague or if an essential provision is lacking, no contract arises from an attempt to accept it a. Courts will do their best to find the intent of the parties and thereby reach the conclusion that the contract is not too indefinite ii. Definite by Incorporation: 1. An offer and the resulting contract that by themselves appear “too indefinite” may be made definite by reference to another writing a. Also made definite by reference to prior dealings of the parties and to trade practices iii. Implied Terms: 1. Although an offer must be definite and certain, not all of its terms need to be expressed iv. “Best Efforts” Clauses: 1. “Best Efforts, as commonly understood, means, at the very least some effort.”
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v. Divisible Contracts: 1. Agreement consisting of two or more parts, each calling for corresponding performances of each part by the parties a. Example, in a promise to buy several separate articles at different prices at the same time, the agreement may be regarded as separate or divisible promises for the articles vi. Exceptions to Definiteness:
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This note was uploaded on 04/24/2011 for the course MGMT 354 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Chapter 13 - Formation of Contracts -- Offer and Acceptance...

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