Business Law Chapter 11

Business Law Chapter 11 - Business Law Chapter 11...

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Unformatted text preview: Business Law Chapter 11 Agreement/Offer and Acceptance Meeting of the Minds- The parties can form a contract only if they have a meeting of the minds – requires that parties understood each other and intended to reach an agreement. o Judges must make objective assessments of the respective intent of each party. They will look at the situation OBJECTIVELY – deciding how a reasonable person would interpret words and conduct. Offer- Bargaining begins with an offer. An offer – an act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms. - Person making offer – offeror - Person whom offeror makes offer to is – offeree - 2 questions determine if a statement is an offer o Did offeror intend to make a bargain? o Are the terms of the offer definite? Problems with Intent- When a person makes an offer to another person. The person whom he made the offer to, if they decide to bargain, it will show intent and prove that the offer is definite. - Generally NOT valid offers include o Invitations to bargain is NOT an offer – if someone asks to buy property from you, you respond by saying you wont sell it for less than a certain amount. If the offeror then proceeds to send you that certain amount, they DO NOT own that property. By the offeree just saying you wont sell less than a certain amount opens the table for bargaining, but no contract is established. o Price Quotes is NOT an offer – the law regards it as solicitation of offers or as a request to receive offers o Letters of Intent – a letter that summarizes negotiating progress. The danger of letters of intent is that one party may not regard it as binding. It is done in business when each party wants to protect itself during discussions, ensuring that the other side is serious without binding itself to premature commitments. o Advertisements are NOT offers but rather a request for offers. The consumer makes the offer and the seller is free to reject the offer. Almost all states have some form of consumer protection statute – these statutes outlaw false advertising o Auctions for the sale of goods are governed by the UCC S2-328 and Auctions for real estate are governed by common law. Placing an item for bid is NOT an offer, but rather a request for an offer. Know if auction is conducted with or without reserve – most auctions are with reserve meaning that they have a minimum price. Law assumes reserves unless auctioneer says differently. Problems with Definiteness - Terms of offer must be definite – if they are vague, then even if offeree accepts the deal, a court does not have enough information to enforce it and there is no contract....
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This note was uploaded on 06/29/2011 for the course MGT 3000 taught by Professor Murrmann during the Spring '11 term at Virginia Tech.

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Business Law Chapter 11 - Business Law Chapter 11...

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