Requirements for the offer and acceptance Offer made with the intention that

Requirements for the offer and acceptance offer made

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° ° Requirements for the offer and acceptance Offer : made with the intention that the offeror will be legally bound Acceptance : undertaking that the offeree will be legally bound Offer : complete = must contain all the terms by which the offeror is willing to abide Acceptance : unconditional acceptance of all the terms in the offer Offer : clear and certain Acceptance : clear and certain Offer : must be addressed to a particular person or persons, unknown persons (e.g. all teachers), the general public (anyone who is willing to do what the offer requires) Acceptance : accepted by the person or persons addressed or somebody who is authorized to act on their behalf. ° Offer : only complete when communicated to the offeree Acceptance : only complete when communicated to the offeror ° ° The falling away of the offer Expiry : an offer limited to a certain time falls away if it has not been accepted within that time.
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Revoked : the offeror withdraws, revokes or annuls the offer before acceptance Rejection : if the offeree rejects the offer, the offer falls away and cannot be revived Counter-offer : if the offeree rejects the offer with a counter offer e.g. the offeror: I offer to sell this dishwasher for R500. The offeree: I will buy it for R450. The initial offer falls away and the offeree becomes the offeror and vice versa. Death : of either party before acceptance. ° ° The continued existence of the offer: The option It is possible to entrench the continued existence of the offer by means of an option or a safeguard The offer cannot be withdrawn while the safeguard exists. The safeguard is a separate contract: an option The option-giver makes an offer to conclude a particular contract (the substantive offer) and in addition makes a further offer to keep the first offer open for a specified period (the option) If the offeree accepts the second offer (the option), the option contract comes into being. The offeror is bound to keep the substantive offer for the agreed period and can neither revoke the substantive offer nor conclude a contract with another party concerning the same subject. ° ° Special rules with regard to offer and acceptance ° An invitation to make an offer A request or invitation to make an offer or to do business is not a true offer e.g. a butcher advertises bulk chops on his shop window for R49.99. This is not an offer. It is an invitation to do business. The same stands true for newspaper and television ads or catalogues or periodicals. When a member of the public reacts to this invitation, he or she is making an offer to purchase the displayed or advertised item. When the dealer accepts the offer, consensus is reached and a contract of sale arises.
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