BUS311_chapter_04

Lapse of time if nothing is stated as to how long the

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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...
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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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