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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
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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