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Unformatted text preview: later and calls up Emily, saying, “I accept! I’ll give you $100 for that bike,” Ben is actually
making an offer to Emily. There is no contract unless Emily chooses to accept.
But what if the conversation goes like this:
Emily: “I’ll sell you my bike for $100.”
Ben: “Hmm. That seems a little high. Would you take $75?”
Ben: “Okay, I accept. The bike for $100.”
This time, they have a contract. Ben’s
remark was not an outright rejection,
and he is not making a counteroffer
since he does not say he will buy the
bike for $75. He is merely engaging in a
little negotiation, which has not affected
Emily’s offer. The offer was still open
when Ben accepted. Death, Incompetence, Destruction,
If either offeror or offeree dies or loses
his mental competency before the offer
has been accepted, the offer terminates.
Emily offers to sell her bike to Ben for
$100. If either Emily or Ben now dies,
the offer dies with them. But if Emily
makes her offer, and then Ben accepts,
and now Emily dies, note that they
already had made a contract and it does
not terminate. rog80328_04_c04_062-088.indd 73 Negotiating a contract must be undertaken with care. An
inquiry or question will not affect the offer, but a counteroffer
or rejection takes the original offer off the table.
Digital Vision/Thinkstock 10/26/12 5:42 PM Section 4.3 Acceptance CHAPTER 4 The exception to this rule is if the offer was part of an option. So if Emily offers to sell her
house to Ben for $100,000, and Ben paid her $75 for a thirty-day option, the offer will stay
open for the thirty days even if either Emily or Ben dies. In that case, the estate of the dead
person could perform instead.
If Emily offers to sell Ben her bike, but before he can accept, Emily’s neighbor backs her
SUV over the bike, rendering it into a twisted metal and rubber abstract sculpture, the
offer terminates due to destruction of the subject matter.
If Sandra offers to sell Damian a carved ivory statue, and now the governmen...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.
- Spring '10
- Business Law