This preview shows page 1. Sign up to view the full content.
Unformatted text preview: a monthly basis for a set fee, giving her until
January 15 to accept. This is not a firm offer, because it is not a contract
for sales of goods.
So only in the first situation will Courtney have a contract if she calls Andy at ABC on
January 6 and tells him that she accepts. Lapse of Time
If nothing is stated as to how long the
offer will remain open, the law says that
the offer will remain open for a reasonable amount of time. For example: The UCC has special rules for sales of goods contracts; some of
them only apply to merchants. Example 4.15. Tawana makes
the following offer to Jerome: “I
will sell you my Dell laptop for
$400.” Jerome tells Tawana that
he’ll think about her offer. Two
days later, he calls her and agrees
to buy the computer under her
terms. They have a contract. But
if Jerome called her after a year,
his acceptance is too late. A reasonable time will vary with the
subject matter. An offer to sell fresh raspberries will terminate before the offer for the laptop. If Tawana’s offer involved pork belly
futures, Jerome’s acceptance would likely be too late, since that type of commodities market fluctuates widely in very short time periods.
iStockphoto/Thinkstock Confusion may be avoided if Tawana simply states a time period in her offer. If she says
“You have until 5 p.m. this Friday to call me and accept,” the offer will automatically
expire if Jerome does not respond by then. rog80328_04_c04_062-088.indd 72 10/26/12 5:42 PM CHAPTER 4 Section 4.2 The Offer Rejection or Counteroffer by the Offeree
If an offeree responds to the offer with either a rejection or a counteroffer, the offer terminates. For example, assume Emily offers to sell Ben her bike for $100. Consider the following possible responses by Ben.
“No, that’s too much.”
“I’ll give you $75.”
In the first example, Ben is rejecting Emily’s offer. In the second, he is making a counteroffer. In both of these situations, Emily’s offer promptly terminates. If Ben changes his mind...
View Full Document
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