BUS271 Chapter 8 - Offer and Acceptance

definite and certain, communicated properly to the offeree, and made with serious intention that the offeror will be bound by it

for an offer to be valid, it must be…

request for proposal (RFP)

a call for a bid or materials/work estimate; may be an invitation to negotiate

advertisements

generally regarded as invitations to trade, or an invitation to make an offer, rather than a valid offer because it does not contain sufficient words of commitment to sell

public offers

advertising that offers a reward for information; is regarded as a general offer to the public at large

be communicated to the offeror and be unconditional

for an acceptance of an offer to be valid, it must…

general rule

an acceptance that becomes effective when both parties specify

mailbox rule

states that an acceptance sent by mail or courier is effective when properly deposited in a U.S. Mailbox, regardless of the posted pickup time

general rule of contract

states that the acceptance of an offer must be the same as the offer; if there are any material (important) differences between the offer and acceptance, acceptance is regarded as a rejection of the offer

termination by lapse of time

states that when the offeree fails to accept an offer within the time specified, it can be terminated

termination by revocation

states that an offer that has been neither accepted nor rejected by the offeree can be withdrawn by the offeror

termination by rejection

states that a direct, unqualified refusal to accept, terminates an offer; cannot be revived or made a counteroffer once it is communicated and has been received by the offeror

termination by death or incapacity

states that mutual agreement cannot occur if either the offeror or offeree die or becomes legally incompetent; an offer is immediately terminated as a result

option contract

a contract that has a provision to keep an offer open for a certain period of time

termination by destruction or illegality

states that if the subject matter of the contract is destroyed or declared illegal after the offer has been made out before acceptance, the contract is terminated