BUS311_chapter_04

For example if brianna says to matias ill sell you

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Unformatted text preview: they have a contract. Glen must pay the $10,000. Reasonably Certain Terms Because the offer establishes the subject matter of what may become a binding agreement, the offer must be reasonably specific and certain. For example, if Brianna says to Matias, “I’ll sell you ten grade-A blue widgets at the price of a dollar per widget,” that is an offer. rog80328_04_c04_062-088.indd 70 10/26/12 5:42 PM Section 4.2 The Offer CHAPTER 4 But if Brianna instead says, “I’ll sell you some grade-A blue widgets at a price of a dollar per widget,” that is not specific enough, because there is no way of narrowing down what she meant by “some” widgets. Five? Fifty? Five hundred? Since not even a reasonable person can determine this, there is no offer. If Matias answers, “Great! I’ll take ten widgets,” he is actually the one making the offer. Offers and Termination Assume we have established that an offer has been made. Emily offers to sell Terrell her only bicycle for $100. We have intent and reasonably certain terms. But before we turn our focus to the offeree, Terrell, to see if he has accepted, we must first establish that the offer is still open to him. There are a number of ways in which offers can terminate, including revocation by the offeror, rejection or counteroffer by the offeree, lapse of time, death of either party, or destruction or illegality of the subject matter. If any of these occurs, it is too late for Terrell to accept and form a contract with Emily. Revocation As a general rule, an offeror has the right to make a revocation of (cancel) the offer at any time prior to acceptance. Example 4.11. Emily makes the following offer to Terrell: “I will sell you my Raleigh bike for $100. You can have until Friday noon to let me know.” Terrell is thinking it over. On Thursday, Emily calls Terrell and says, “Sorry, I changed my mind. I’m keeping the bike.” Can Emily revoke, even when she said Terrell had until Friday? Yes, because Terrell had not yet acc...
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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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