Suggested Additional Assignments
Bob and Katrina: Let’s Make a Deal
The chapter opens with a page of dialogue.
Bob, a movie director, and Katrina, an actress, believe they
have formed a contract—but what are its terms?
Divide students into two groups and have one group
write a brief contract capturing the deal from Bob’s perspective, and the other write a brief contract
capturing the deal from Katrina’s perspective.
In class select two representatives from each group to
act as lawyers for Bob and Katrina, respectively.
Tell them they are meeting to hammer out the terms
of a deal based on what their clients told them and must try to agree on what those terms are.
Drafting: A Letter of Intent
Businesspeople use letters of intent frequently, although lawyers often urge otherwise.
draft a letter of intent that arguably does—and arguably does not—create a binding deal for some
transaction within the students’ experience such as renting an apartment, buying a car, or booking a
charter flight for spring break.
The students should be able to explain the nature of the ambiguity and
how to remedy it.
A valid offer creates a power in the offeree to create a contract by agreeing to its terms.
determines whether a person intended to make an offer by looking objectively at all of the facts and
circumstances in which it is made.
The law of offer and acceptance is premised on the common-law
concept of “meeting of the minds,” in which an offeree understands and accepts an offer on the same
terms as the offeror.
Vagueness or ambiguity in an offer or acceptance guarantees problems and may
lead to litigation.
The executive or consumer who articulates to herself precisely what she wants, and
then bargains clearly for it, is likely to spend more time doing business and less time in court.
Quote of the Day
“It takes two to speak the truth–one to speak and another to hear.” –Henry David Thoreau (1817 1862),
As the text notes, an offer is an act or statement that proposes definite terms and
permits the other
party to create a contract by accepting those terms.
Sometimes we forget that by making a valid offer,
we give that power to the other person.
forget the point.
Mutual Insurance Company wanted to energize a regional meeting, so it announced a contest for the
best company slogan, to be used at the convention.
“Here’s what you could win:
His and Hers
An all-expense-paid trip around the world.
Additional prizes to be announced.
subject to availability.)”
David Mears and 184 other employees entered.
Mears’s slogan, “At the Top and Still Climbing,”
was the winner.
One company officer told Mears that he had won the two cars, while another one said
that the cars were just a joke.
Ultimately, Nationwide informed Mears that the prizes were never
The company did, however, use his slogan for its convention, and banners, booklets,