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Chapter 10OfferOutline

Chapter 10OfferOutline - Part III Contracts Chapter 9 Intro...

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Part III – Contracts: Chapter 9: Intro to Contracts Chapter 10: The Agreement: Offer Chapter 11: The Agreement: Acceptance Chapter 12: Consideration Chapter 13: Reality of Consent Chapter 14: Capacity to Contract Chapter 15: Illegality Chapter 16: Writing Chapter 17: Rights of Third Parties Chapter 18: Performance and Remedies Chapter 10 – The Agreement: Offer “There is nothing more likely to start disagreement between moving people or countries than an agreement.” - E.B. White LEARNING OBJECTIVES - Requirements for an Offer: o Intent o Definiteness of Terms - Special Problems - Termination of an Offer REQUIREMENTS FOR AN OFFER - An offer is a promise made in return for o A return promise, or an act - An offer is a promise, conditional on act, return promise, or forbearance o Forbearance = refraining from doing something - Parties to a contract must: o Have intent to enter into a binding agreement o Terms must be definite o And the offer must be communicated to the offeree - Critically important first step in the contract formation process - An offer says, in effect, “This is it – if you agree to these terms, we have a contract.” - Elements of an offer: o Parties intend to enter a binding agreement (1), and OFFEROR – The person who makes the offer OFFEREE – The person to whom she makes an offer
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o Terms are definite (2), and o Offer is communicated to offeree (3) INTENT TO CONTRACT (1) - Offeror must manifest an intent to contract that is PRESENT & OBJECTIVE o Present intent to contract – the intent to enter the contract upon acceptance; that the offeror is not joking, haggling, or equivocating - An offeror must indicate present intent to contract, or the intent to meet the contract obligation upon acceptance - Courts use the objective theory of contracts: o “Would a reasonable person judge the offeror’s words and actions in the context of the circumstances to signify intent?” OBJECTIVE THEORY OF CONTRACTS (2) - The Objective Theory of Contracts: o Judges agreement by looking at the parties’ outward manifestations of intent - A contract has, strictly speaking, nothing to do with the personal, or individual intent of the parties. A contract is an obligation attached by the mere force of law to certain acts of the parties, usually words, which ordinarily accompany and represent a known intent. If however, it were proved by 20 bishops that either party when he used the words intended something else than the usually meaning which the law imposes on them, he would still be held, unless there were mutual mistake or something else of the sort.” - Would a reasonable person judge the offeror’s words and acts to signify intent? - OBJECTIVE STANDARD – what his words, acts, and the circumstances signify about his intent MERAM V. MACDONALD 2006 US DIST LEXIS 79069 US DIST CT SD CAL FACTS - Allianz Sales invited Frank Meram and 100 other financial representatives to a presentation on Sept 29, 2005 to meet Robert MacDonald, (author of Cheat to Win), a multimillionaire
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Chapter 10OfferOutline - Part III Contracts Chapter 9 Intro...

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