BUS311_chapter_04

Emily no ben okay i accept the bike for 100 this time

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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?” Emily: “No.” 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, and Illegality 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.

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