BUS311_chapter_04

The language used is always important in helping to

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Unformatted text preview: ctive. What matters is that a reasonable person under the same circumstances would clearly understand that an offer was intended by the offeror. The language used is always important in helping to determine the intent of the parties, but a valid offer can be made even when no words are spoken, simply by the actions of the parties. If, for example, Muhammad holds out a twenty-dollar bill and tells Carol, “I’ll give you this for that fountain pen on your desk,” and Carol takes the money and puts it in her pocket without saying a word, she will have clearly accepted his offer by her actions. What is important in determining whether a valid offer or acceptance existed is the objective intent of the parties as communicated through their words or actions. In other words, would a reasonable person viewing the situation believe the parties intended to contract? For example, on Tyrone’s drive to work one day, his car dies. Tyrone is very upset because this is the fourth time in two weeks that he’s had car trouble, and now he’s going to be late to work again. Tyrone gets out of the car, kicks the door, and yells, “I’d pay someone $10 to drive this piece of junk off a cliff!” Sofia happens to be walking by, and she could use $10 and she knows where there is a convenient cliff. Can she accept? No, because a reasonable person would realize that Tyrone is simply expressing his anger, and does not seriously intend to pay for his car to go over a cliff. rog80328_04_c04_062-088.indd 69 10/26/12 5:42 PM Section 4.2 The Offer CHAPTER 4 The subjective intent of the offeror and offeree are irrelevant and will not be examined by a court in determining intent to contract. What is important is not whether an offeror subjectively made an offer in jest, but rather whether the person to whom the offer was made, the offeree, should have realized that the offeror was only joking when he made the offer. It must be clear to an average person that the offer was not seriously intended; otherw...
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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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