If it is found that a legally sufficient agreement had not been formed neither

If it is found that a legally sufficient agreement

This preview shows page 24 - 26 out of 27 pages.

If it is found that a legally sufficient agreement had not been formed, neither party has contractual liability to the other-A person’s manifested or apparent intent is frequently referred to by the courts as “objective” intent (what a reasonable person can infer from it), while actual or secret intent is called “subjective” intent. Thus, the test by the courts is the “objective test”-Why?-Can’t prove what another person is thinking-You can lie in court about your intentRequirements of the Offer-“Offer” is the idea of a proposal made by one person, called the offeror to another, the offeree, indicating what the offeror will give in return for a specified promise or act on the part of the offeree-Consensual in nature-Requirementsa.Manifestation of an intent to contractb.A reasonably definite indication of what the offeror and the offeree are to doc.A communication of the proposal to the intended offeree-What is NOT an offer:-“dickering” - “I’d like to get $4,000 for this car” or “Man I sure would be happy to buy-Richards v. Flowers-Shows the difficulty in determining when an offer is made-Negotiating about land-Flowers trying to buy Richards property-He said he would be willing to take XX amount-Flowers said that there was an offer and acceptance-He sold it to someone else-Not a contract because: (he didn’t make her a valid offer and the couple also changed the terms)
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-Willing to sell the house isn’t the same as accepting an offer= no acceptance-A little bit of dickering still-Also, there was a counter offer made (offer and acceptance have to mirroreach other)**In addition to communications, actions matter as well! Courts will look at what transpires between two parties as well as industry standardsAdvertisements 330-*** Not true that you can sue for false advertisement (if it says $5 and its $6, can’t sue them)-Advertisement are usually considered to be preliminary negotiations, rather than offers to sell-The historic rationale for this rule is based-1. On the fact that most advertisements are silent on other material matters, suchas the available quantity and credit terms-2. On the traditional principle that sellers of goods have the right to choose the parties with whom they deal-3. On the fact that a merchandiser cannot exactly predict the volume or responses from customers-***Bigger issue is quantity (people run out of supplies and shouldn’t be held contractually liable if they are having a deal)-Thus, when a customer does into the advertiser’s store and tenders the advertised price,a contract is normally not formed. Rather, the customer is making an offer to purchase, which the store can accept or reject-***Not be acting illegally if we charged them for more than $9.99 when the ad said $9.99 because that advertising was an invitation for them to come in- Big issue here- discrimination (cannot discriminate for race, religion, etc.)- If an annoying drunk comes into the restaurant they are legally allowed to not serve him (if
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