Chapter 9: Offer and Acceptance

Size: px
Start display at page:

Download "Chapter 9: Offer and Acceptance"

Transcription

1 89 Chapter 9: Offer and Acceptance As we have already seen, a contract is a legally enforceable agreement between two or more parties. As this definition implies, a contract depends upon the consent of the parties to enter into a binding agreement. Assuming that the other requisite criteria are present (consideration, capacity, genuine assent, legality and, where required, specific form) a binding contract is formed at the moment that a valid offer to enter into a contract is accepted. When a valid offer is accepted, the parties involved are obligated to render the agreed upon performance and can be sued for breach of contract if they fail to do so. Requirements of a Valid Offer A valid offer must contain an unqualified, unambiguous promise to enter into a contract and must be communicated by the offeror (the person making the offer) to the offeree (the person to whom the offer is made). An offer that contains the requisite unqualified, unambiguous promise to enter into a contract and is communicated to the offeree can be accepted by the offeree to form a binding contract. In analyzing whether a valid offer exists, it s important to carefully examine the language and the circumstances surrounding the offer to determine whether the offer is unqualified, unambiguous, contains a valid promise, and has been communicated to the offeree. The following examples will illustrate some common problem areas. Rachel tells Ron, "I am considering selling my house for $100,000." Ron immediately replies, "I accept your offer." Stacy, angry that her motorcycle has broken down for the third time in two months, cries out, "I will sell this piece of junk motorcycle to the first person that gives me a nickel." Helen, who hears the statement, promptly tenders 5 to Stacy for the motorcycle. 89

2 90 Arthur tells his friend Ranji, "I'll sell you my portable television set for $50." Before Ranji has a chance to reply, Sandy, who overheard the statement, cries out, "I accept your offer." Although each of the last three examples seems to contain a valid offer, in fact none will form a valid contract when accepted under the facts given. In the first example, Rachel's statement does not contain a valid offer because it does not contain an unequivocal promise: Rachel says that she is considering selling her house, not that she promises to sell her house. Her statement is therefore not a clear offer, and no contract will be formed when Ron tries to accept it. In the second example, Stacy's statement certainly seems clear enough, yet under the circumstances it too is not an unequivocal offer, because the statement is made in anger or frustration and should not be interpreted as seriously intended by any offeree; in addition, the offer to sell a working motorcycle for a nickel also puts any potential offerees on notice that it is unlikely to be seriously intended. In the last example, Arthur's statement is a clear, unequivocal offer, but it cannot be accepted by Sandy because it was not communicated to her, but rather was made to Ranji. Only a person to whom an offer is communicated can accept it. (In that example, Ranji does have the power to accept Arthur's offer, since it is an unambiguous promise that was communicated to him.) Revocation of an Offer In general, a valid offer can be accepted at any time until it is either revoked or lapses. The offeror may revoke her offer at any time before it is accepted by communicating her intention to revoke to the offeree. Notice of revocation is effective when it is received by the offeree, whether or not he actually hears or reads it. The offer is also revoked if the offeree receives information from any source that clearly indicates the intention of the offeror to revoke the offer; an example of this is an offeree learning that a car that the offeror had offered to sell him has been sold to another party. An offer may also be made to expire after a set period of time; if that is the case, the offeree must accept the offer during the stated time period that it is held open in order to form a contract. If Anne tells Bob, "I will sell you my stereo for $75. I ll give you 24 hours to think about it," then Bob must act within the stated time period or the offer will expire. Even when a time period is specified, however, the offeror may still revoke the offer at any time before it automatically expires by communicating the desire to revoke the offer to the offeree. An exception to this rule is made if the offeree has given consideration for the offeror keeping the offer open. When such consideration is given, the offeree has a firm offer (also called an option) that is irrevocable by the offeror for its stated duration. Under Article 2 of the Uniform Commercial Code (UCC), a firm offer made by a merchant in a signed writing is also irrevocable, even if no additional consideration is given the merchant by the offeree for keeping the offer open. 90

3 91 When no time period is specified for acceptance by the offeree, an offer will terminate after the expiration of a reasonable period of time even if the offeror does not revoke it. What is a reasonable time period depends on the surrounding circumstances and hinges largely on the nature of the subject matter of the contract. If the subject matter of the contract is something with a fairly constant value, such as real estate in a stable housing market, a reasonable time might be six months or even longer. On the other hand, when the subject matter of the contract is subject to swift market fluctuations or has a limited useful life, the time period for acceptance of the offer can be very short. It can be measured in seconds when dealing with potentially volatile commodities such as pork belly, soybean or crude oil futures, or be a day or so when highly perishable goods for immediate shipment, such as some fruits, vegetables or flowers, are the subject of the offer. Finally, an offer may automatically lapse by operation of law in a number of instances, such as the accidental destruction of the subject matter of the offer before it is accepted, or the death or incapacity of the offeror prior to acceptance of the offer by the offeree. Thus, if Sandy offers to sell her sailboat to Beatrice for $10,000 and the sailboat sinks in a storm before Beatrice accepts the offer, it automatically lapses; likewise if Sanji offers to paint Beana's portrait for $500 and Sanji dies or becomes permanently incapacitated before Beana accepts the offer, Sanji s offer would lapse. Acceptance An offer is accepted by an offeree signaling his or her unqualified, unambiguous assent to the terms of the offeror's offer. In order to be valid, the offeree must communicate the acceptance to the offeror. In addition, the offeree s acceptance must be under the exact terms offered by the offeror; the terms in the acceptance must exactly mirror the terms in the offer for the acceptance to be valid. This requirement is referred to as the common law mirror image rule, which holds that any material deviation in the acceptance from the terms of the offer constitutes a rejection of the offer. The following example will illustrate. Steve offers to sell Barbara his English Racer for $350. Bernice can only accept the offer by agreeing to buy the bicycle under the offeror s terms. ("I accept." "I agree to your terms." "I'll take the bicycle." "Agreed." or any similar unequivocal, unambiguous response would constitute valid acceptance.) In the last example, any of the following answers would violate the mirror image rule and automatically reject the offer, since each contains either additional or different terms from the original offer: "I'll take the bike for $300." "I'll take the bike provided you agree to coach me on racing for 20 hours at no additional cost." 91

4 92 "I accept your offer provided you replace the worn front tire on the bike." A counteroffer serves as an automatic rejection of the offer. Once a counteroffer is made, the original offeror now becomes the offeree of the counteroffer and can choose to either accept the counteroffer or reject it. The original offeree loses his ability to accept the original offer after making a counteroffer, as the next example illustrates. Celine offers to sell Biff her comic book collection for $1,500. Biff says he'll buy it for $1,250. Celine now has the right to accept Biff's counteroffer on his terms, reject it, or make another counteroffer of her own. If she rejects the counteroffer, Biff will no longer be able to accept the original offer to buy the comics for $1,500 to form a contract, since a counteroffer serves as a rejection of the original offer. Like an offer, an acceptance must be unqualified and unambiguous. Although the word "accept" need not be used in a valid acceptance, the intent to accept must be unquestionably clear in order for a contract to be formed. Such responses as "I'm interested," "that sounds good," or "I could go for that" are all too ambiguous to form a valid acceptance. Modes of Acceptance An offer can be accepted through any reasonable means that communicates to the offeror the offeree's assent to the terms of the offer. As previously noted, acceptance of a valid offer immediately gives rise to a contract, provided that the other requirements for a valid contract are also present. This is not a problem in face to face negotiations, since the acceptance is immediately communicated to the offeror by the offeree and both parties are aware that a contract is formed. But what if an offeree decides to communicate his acceptance through the mail, by telegraph or by use of ? In such cases, the acceptance is effective as of the moment that it is sent regardless of when or even whether it is received by the offeror. When acceptance is made by letter, it is effective as soon as a properly addressed envelope with sufficient postage is dropped in a mailbox or handed over to a postal employee for delivery. This is referred to as the mailbox rule. A similar rule applies in most states to letters carried by carrier services, telegraphs and electronic or voice mail. The fact that an acceptance is valid when sent, rather than when received, can cause potential problems for offerors, as can be seen in the next example: Jim calls ten friends offering to sell them his piano for $ a bargain since its market value is $5,000. He tells them each to let him know within a week if they want to accept his offer. The next day, three of his friends write their acceptance in a letter that they deposit in a mailbox, properly addressed to Jim and containing the proper postage; three other friends leave him messages of acceptance on his answering machine at home; one sends him an electronic mail message of acceptance, one leaves an accep- 92

5 93 tance message with James's secretary and one calls him at work and personally signals her acceptance. What result? Jim in our last example had better hope that his friends are very understanding, for he has ten valid contracts to sell his one piano. While only one of his friends will be able to successfully sue for the actual piano (the one who can prove he or she accepted first), the other nine friends are entitled to money damages (the difference between what they would have paid for the piano and its market value, in this case $4,550 each.) This example illustrates the danger of making multiple general offers. How could Jim have protected himself in our last example? He could (and should) have done so by limiting acceptance to a specific means, such as "I will sell my piano to the first person who accepts my offer in person at my home." Note that even if the friend that called in her acceptance to Jim in person was the first to answer and therefore entitled to receive the piano, her acceptance would not revoke Jim s offer to the other nine offerees unless they independently learned of it prior to signaling their own acceptance of the offer. Acceptance of a Unilateral Contract As previously noted, a unilateral contract is an exchange of a promise for an act. What the offeror in a unilateral contract wants is not a promise by the offeree in return for her own promise, but rather for the offeree to accept the contract by performing the requested act. Acceptance of a unilateral contract, then, is made by the offeree only by beginning performance of the promisor s requested act. Once performance begins by the offeree, the offeror cannot withdraw the offer in most states and must allow the offeree to complete the task that is the subject matter of the contract. Acceptance by the offeree is complete when the task is finished, and the offeree is at that time entitled to receive the offeror's promised performance under the contract. Sherman offers to pay Sari $500 if she paints his garage within the next 72 hours. Sari says nothing, but goes out to purchase the required supplies and begins performing the work the next morning. Once Sari takes a substantial step towards rendering the requested performance, such as by purchasing the required supplies and preparing the garage for painting, Sherman may not withdraw the offer and must give Sari the opportunity to complete the work. If Sari does not complete the work on time, she will not be entitled to any payment, since she can accept the offer for a unilateral contract only by her full timely performance. On the other hand, if she completes the work on time, she will have accepted Sherman's offer and be entitled to payment of the $

6 94 QUESTIONS 1. What are the requirements of a valid offer? 2. What are four ways in which a valid offer can be revoked? 3. What effect does a counteroffer have on an offer? 4. What are the elements of a valid acceptance? 5. What means can be used by an offeree to communicate acceptance to the offeror? HYPOTHETICAL CASES 1. Steve, while walking down the street, tells his friend Basili, "I would seriously consider selling you my antique gold Longines watch for $1,000." Basili does not answer. A month later, he writes Steve a letter stating that he accepts his offer to sell the Longines watch for $1,000. Is a contract formed? What is the effect of Basili s offer? Explain fully. 2. Assume the same facts as the last case. Would it make a difference if Basili had accepted the offer the next day? Do you think that a 30-day period is reasonable to accept an offer for the sale of an antique gold watch? Explain fully. 3. Olivia tells Bob, "If you agree to fix the leaky gutters in my house next week, I will agree to babysit your daughter next weekend for up to 10 hours." Bob replies, "You've got a deal, provided that you give me $10 for the parts I'll need to do the work." Under these facts, is there a valid contract? Explain. 4. Osvaldo, an accountant, tells Luisa, "I'll gladly keep the books for your business for a yearly fee of $1,000." Ted, who overhears the offer, promptly answers, "I accept, Osvaldo". a. Is there a valid contract between Osvaldo and Ted? Explain. b. What is the proper legal term for Osvaldo s statement? c. If Luisa writes Osvaldo a letter of acceptance and mails it the next day but forgets to put a stamp on the envelope, will a valid contract be formed? Explain. 94

Question 4. Bob s message said, The price is pretty high, so I ll have to think about it.

Question 4. Bob s message said, The price is pretty high, so I ll have to think about it. Question 4 Sam decided he was ready to sell his classic sports car. On May 1 and in the following order, he telephoned Bob, Carla, Dan, and Edna, each of whom had earlier expressed interest in buying the

More information

OFFER & ACCEPTANCE. Chapter 7

OFFER & ACCEPTANCE. Chapter 7 OFFER & ACCEPTANCE Chapter 7 SECTION 7-1 GOALS List the elements required to form a contract. Describe the elements of an offer. Contract Agreement that courts will enforce Can be oral or written Elements

More information

AGREEMENT. Agreement: Mutual assent to a contract s essential terms, voluntarily manifested through offer and acceptance.

AGREEMENT. Agreement: Mutual assent to a contract s essential terms, voluntarily manifested through offer and acceptance. AGREEMENT Agreement: Mutual assent to a contract s essential terms, voluntarily manifested through offer and acceptance. Offer: An offeror s promise or commitment to perform or refrain from performing

More information

L E A R N I N G O B JE C T I V E S

L E A R N I N G O B JE C T I V E S L E A R N I N G O B JE C T I V E S 1. Find out when the Uniform Commercial Code (UCC) is the appropriate law to apply and when the common law is the appropriate law. 2. Learn the elements of common-law

More information

CHAPTER 5 HOW CONTRACTS ARISE

CHAPTER 5 HOW CONTRACTS ARISE CHAPTER 5 HOW CONTRACTS ARISE 1 WHAT IS A CONTRACT? A legally binding agreement Contracts require a bargain Manifestation of Mutual Assent 2 MANIFESTATION OF MUTUAL ASSENT Offer Acceptance - Consideration

More information

Chapter 3. Formation of a Contract under the UCC

Chapter 3. Formation of a Contract under the UCC This chapter is a modification of a work originally authored by Scott J. Burnham & Kristen Juras and published by CALI elangdell Press under the BY-NC-SA 4.0 License. Modification by Eric E. Johnson. See

More information

CHAPTER 5. CONTRACT Requires a which is called

CHAPTER 5. CONTRACT Requires a which is called CHAPTER 5 HOW S ARISE NBEA STANDARD II: Analyze the relationships between contract law, law of sales, and consumer law. OBJECTIVE: Develop an understanding of contracts: distinguish between express and

More information

MBE Strategies for Contracts and Sales

MBE Strategies for Contracts and Sales MBE Strategies for Contracts and Sales 1. Introductory tips: Contracts and Sales is one of the hardest subjects for students to master. There are many topics and sub- topics within this subject. In order

More information

CONTRACTS FORMATION MODEL ANSWER

CONTRACTS FORMATION MODEL ANSWER MODEL ANSWER Please compare your answer to the sample below, noting the issues you missed, whether your rule statements were included and completely stated, and whether you included the relevant key facts

More information

SALES TABLE OF CONTENTS. Chapter 1: How to Answer Sales Questions...1. Chapter 2: The Six Types of Sales Questions...2. Chapter 3: Sales Issues...

SALES TABLE OF CONTENTS. Chapter 1: How to Answer Sales Questions...1. Chapter 2: The Six Types of Sales Questions...2. Chapter 3: Sales Issues... SALES TABLE OF CONTENTS Chapter 1: How to Answer Sales Questions....1 Chapter 2: The Six Types of Sales Questions.......2 Chapter 3: Sales Issues........5 Chapter 4: Spotting Sales Issues..... 10 Chapter

More information

Principles of Contract Law

Principles of Contract Law Contracts - Legally enforceable promises. Contracts establish the legal relationship between two or more parties. I. Contract Basics A. Written vs. Verbal B. Sources of Contract Law Common Law - formation,

More information

MODULE 5-A: LISTING AND SALES CONTRACTS

MODULE 5-A: LISTING AND SALES CONTRACTS MODULE 5-A: LISTING AND SALES CONTRACTS LEARNING OBJECTIVES The contractual relationships between brokers and clients are established through the use of a series of contracts. The listing contract is the

More information

UCC ARTICLE 2: SCOPE

UCC ARTICLE 2: SCOPE UCC ARTICLE 2: SCOPE UCC Article 2 governs sales, and contracts for the sale, of goods, pursuant to which a seller transfers to a buyer (1) title (ownership) to (2) goods, including (a) growing crops and

More information

CONTRACTS MID TERM EXAMINATION FALL 2015 SANTA BARBARA AND VENTURA COLLEGES OF LAW INSTRUCTOR: CRAIG SMITH QUESTION 1

CONTRACTS MID TERM EXAMINATION FALL 2015 SANTA BARBARA AND VENTURA COLLEGES OF LAW INSTRUCTOR: CRAIG SMITH QUESTION 1 Question 1, consists of 4 subparts or scenarios. CONTRACTS MID TERM EXAMINATION FALL 2015 SANTA BARBARA AND VENTURA COLLEGES OF LAW INSTRUCTOR: CRAIG SMITH QUESTION 1 1. Ashley and Bob: A lamp and a chair

More information

Purchases and Sales Under the Uniform Commercial Code

Purchases and Sales Under the Uniform Commercial Code Bulletin No. LL2 Revised File: Legal B u l l e t i n Purchases and Sales Under the Uniform Commercial Code The Uniform Commercial Code is in effect in all states (but Louisiana has not adopted all Articles)

More information

3.1 Meaning of Contract Law Terms 3.2 Formation of Contracts 3.3 Legal Incapacity to Enter Contracts

3.1 Meaning of Contract Law Terms 3.2 Formation of Contracts 3.3 Legal Incapacity to Enter Contracts 3. Contracts 3.1 Meaning of Contract Law Terms 3.2 Formation of Contracts 3.3 Legal Incapacity to Enter Contracts 3.4 Third-Party Beneficiary Contracts 3.5 Assignment and Delegation of Contract Rights

More information

Question Is GravelCo obligated to sell 5000 tons of gravel to Builder at $8 per ton? Discuss.

Question Is GravelCo obligated to sell 5000 tons of gravel to Builder at $8 per ton? Discuss. Question 4 GravelCo is a distributor of high quality gravel used on construction projects. In August, GravelCo found itself with more gravel than it could easily store. On August 15, GravelCo s sales director

More information

Introduction to Contract Law: Part I

Introduction to Contract Law: Part I Introduction to Contract Law: Part I Monday 8 May 2017: Module 2 Andrew Charlton Charles Stotler Matthew Feargrieve Richard Gimblett 8-13 May 2017 OVERVIEW I. Theory of Contracts II. Importance of contracts

More information

What you need to know Real Estate Education Series

What you need to know Real Estate Education Series CONTRACTS What you need to know Real Estate Education Series 2.23.09 WWW.twiliteeducation.com Basically, a contract is an agreement to do or not do something between different parties. In each agreement

More information

Chapter 7 B-LAW IV: Contracts OA/GA OFFER & ACCEPTANCE

Chapter 7 B-LAW IV: Contracts OA/GA OFFER & ACCEPTANCE 7-1 Creation of Offers Hot Debate Celia had worked after school since she was 14 to save money for a car. When she turned 18, she bought a VW. Two weeks later she was driving a group of friends to school.

More information

SALES TOPIC OUTLINE 1

SALES TOPIC OUTLINE 1 SALES TOPIC OUTLINE 1 1. UCC Article 2 applies to (2-102) 2. Goods are (2-105)(1), (4) 3. Merchants are (2-104) 4. Goods to be severed from realty (2-107) 5. Statute of Frauds (2-201) 6. Parol Evidence

More information

Sales Associate Course

Sales Associate Course Sales Associate Course Chapter Eleven Contracts Copyright Gold Coast Schools 1 Elements of a Valid Contract Lawful subject Must have a legal purpose to be enforceable Copyright Gold Coast Schools 2 Elements

More information

Business Law, 9e (Cheeseman) Chapter 9 Nature of Traditional and E-Contracts

Business Law, 9e (Cheeseman) Chapter 9 Nature of Traditional and E-Contracts Instant download and all chapters Test Bank Business Law Legal Environment Online Commerce Business Ethics and International Issues 9th Edition Cheeseman https://testbanklab.com/download/test-bank-business-law-legal-environment-onlinecommerce-business-ethics-international-issues-9th-edition-cheeseman/

More information

CONTRACTS THREE HOURS. THIS IS A CLOSED-BOOK EXAM.

CONTRACTS THREE HOURS. THIS IS A CLOSED-BOOK EXAM. AGN: Caroline Bradley SPRING SEMESTER 2013 CONTRACTS THREE HOURS. THIS IS A CLOSED-BOOK EXAM. Try to show thought and critical analysis of the materials and issues dealt with in the course. DO read the

More information

CA Foundation New Format Questions & Answers

CA Foundation New Format Questions & Answers CA Foundation New Format Questions & Answers Q.1 what is proposal/offer. Explain types of offers? Ans Meaning - An offer is the starting point in the making of an agreement. An offer is also called 'proposal'

More information

tenancy agreements What to look for in a tenancy agreement ueastudent.com/advice

tenancy agreements What to look for in a tenancy agreement ueastudent.com/advice tenancy agreements What to look for in a tenancy agreement. 1 What do I have to sign to rent a house? When you sign up for a rented house, you will have to sign a tenancy agreement. A tenancy agreement

More information

Eviction. Court approval required

Eviction. Court approval required Eviction An eviction is a lawsuit filed by a landlord to remove persons and belongings from the landlord's property. In Texas law, these are also referred to as "forcible entry and detainer" or "forcible

More information

Study for exams on your iphone, ipad, or ipod Touch

Study for exams on your iphone, ipad, or ipod Touch Constitutional Law Contracts Criminal Law Criminal Procedure Evidence Real Property Torts MPRE Review Study for exams on your iphone, ipad, or ipod Touch Six hours of lecture video for on- the- go playback

More information

EXTRACT FOR QUESTION 7

EXTRACT FOR QUESTION 7 EXTRACT FOR QUESTION 7 THIS EXTRACT IS TO BE USED FOR QUESTION 7 OF THE BOARD S WRITTEN TEST. THIS EXTRACT CONTAINS SELECTED PROVISIONS OF THE ANNOTATED CODE OF MARYLAND, COMMERCIAL LAW ARTICLE, TITLE

More information

CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS (1980) CISG

CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS (1980) CISG UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS (1980) CISG STRUCTURE OF THE CONVENTION Part I: Scope of application and general rules Arts. 1 13 Part II: Formation of the contract

More information

Business English. (Answer Keys)

Business English. (Answer Keys) Business English (Answer Keys) Business English / Incomplete Sentences / Elementary level # 1 (Answer Keys) Money accepted I like to visit other countries but I find the cost of travel is too high. answer:

More information

1.2. Cooling-off period: the period within which the consumer can make use of his right of withdrawal;

1.2. Cooling-off period: the period within which the consumer can make use of his right of withdrawal; Index: Article 1 - Definitions Article 2 - Company information Article 3 - Applicability Article 4 - The offerticle 5 - The contract Article 6 - Right of withdrawal Article 7 - Obligations of the consumer

More information

EVICTIONS including Lockouts and Utility Shutoffs

EVICTIONS including Lockouts and Utility Shutoffs EVICTIONS including Lockouts and Utility Shutoffs Every tenant has the legal right to remain in their rental housing unless and until the landlord follows the legal process for eviction. Generally speaking,

More information

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Spring Nonconforming Goods

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Spring Nonconforming Goods Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Nonconforming Goods I. Buyer s Article 2 Rights with Respect to Nonconforming Goods A. General Rule:

More information

Florida Powers of Attorney*

Florida Powers of Attorney* Florida Powers of Attorney* Unless otherwise specified, the information in this booklet applies to Powers of Attorney signed on or after October 1st of 1995. Consult a lawyer regarding use and enforceability

More information

Leases of land and/or buildings to sailing clubs generally fall within the provisions of Part II of the Landlord and Tenant Act 1954.

Leases of land and/or buildings to sailing clubs generally fall within the provisions of Part II of the Landlord and Tenant Act 1954. LEASE RENEWALS THE LANDLORD AND TENANT ACT 1954 Overview: Leases of land and/or buildings to sailing clubs generally fall within the provisions of Part II of the Landlord and Tenant Act 1954. The Act broadly

More information

FORMATION OFFER: (2) Elements: Sufficiently clear and promissory (Gibson v Manchester) More than a mere puff (Carbolic Smoke Ball)

FORMATION OFFER: (2) Elements: Sufficiently clear and promissory (Gibson v Manchester) More than a mere puff (Carbolic Smoke Ball) FORMATION [A] will argue that a binding contract exists, and seeks to enforce [B] s promise of. In this case, the elements of and are likely uncontentious, but [A] will have to make out and _. OFFER: [A]

More information

Massachusetts Bar Exam Review: CONTRACTS February 1998 Page 1 of 46

Massachusetts Bar Exam Review: CONTRACTS February 1998 Page 1 of 46 CONTRACTS 13, 14, 15 January 1998 Overview of Lecture 1. Applicable Law 2. Formation of Contracts 3. Terms of Contract 4. Performance 5. Excuse of Non-performance 6. Breach Remedies 7. Third Party Problems

More information

Question Under what theory or theories may Paula be successful in her breach of contract action against Bert? Discuss.

Question Under what theory or theories may Paula be successful in her breach of contract action against Bert? Discuss. Question 1 Abby and Paula entered into a valid contract under which Abby agreed to buy and Paula agreed to sell for $1.5 million a printing press for Abby s business. Abby made a $500,000 payment to Paula

More information

(Otherwise Known As the Lease)

(Otherwise Known As the Lease) Chapter 3 THE RENTAL AGREEMENT (Otherwise Known As the Lease) A lease is a contract containing promises between you and the landlord. There are two types: a written lease and a spoken or oral agreement.

More information

POSITION PAPER Internal Deed Restrictions May 11, 2018

POSITION PAPER Internal Deed Restrictions May 11, 2018 POSITION PAPER Internal Deed Restrictions To: From: VCDD 2 Board of Supervisors Bryan Lifsey, VCDD 2 Supervisor PURPOSE: Some Open Q & A Sessions hosted by our and other district Supervisors have shown

More information

Essentials of Contract Law 2nd Edition Frey TEST BANK Full download at:

Essentials of Contract Law 2nd Edition Frey TEST BANK Full download at: Essentials of Contract Law 2nd Edition Frey TEST BANK Full download at: Essentials of Contract Law 2nd Edition Frey SOLUTIONS MANUAL Full download at: https://testbankreal.com/download/essentials-contract-law-2nd-editionfrey-test-bank/

More information

Chapter 11. Competitive Negotiation: Procedure

Chapter 11. Competitive Negotiation: Procedure Chapter 11. Competitive Negotiation: Procedure Summary This chapter provides an overview of the procedure for procuring goods and services using the competitive negotiation procedure. The competitive negotiation

More information

PANCHAKSHARI S PROFESSIONAL ACADEMY PVT LTD

PANCHAKSHARI S PROFESSIONAL ACADEMY PVT LTD Discharge of 1. A is discharged by breach when a party to a a. refuses to perform his promise b. fails to perform his promise c. disables himself from performing his part of the promise d. all of the above

More information

WebMoney Transfer Passport issuance Regulations

WebMoney Transfer Passport issuance Regulations WebMoney Transfer Passport issuance Regulations These regulations determine order and rules of WebMoney Passport Service (further Service) partnership program participants in the matter of Personal and

More information

CONTRACT LAW NOTES. Agreement Offer Not Offers Revocation Acceptance Certainty Sufficiently Certain...

CONTRACT LAW NOTES. Agreement Offer Not Offers Revocation Acceptance Certainty Sufficiently Certain... CONTRACT LAW NOTES TABLE OF CONTENTS Agreement... 4 Offer... 4 Not Offers... 4 Revocation... 5 Acceptance... 5 Certainty... 7 Sufficiently Certain... 7 Sufficiently Complete... 8 Illusory Promises... 8

More information

Your guide to: Staircasing. How to buy further shares in your Shared Ownership home. Great homes, positive people, strong communities

Your guide to: Staircasing. How to buy further shares in your Shared Ownership home. Great homes, positive people, strong communities Your guide to: Staircasing How to buy further shares in your Shared Ownership home Great homes, positive people, strong communities Contents What is staircasing? 1 What provisions are there for staircasing?

More information

Understanding the Magnuson-Moss Warranty Act

Understanding the Magnuson-Moss Warranty Act Understanding the Magnuson-Moss Warranty Act The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in 1975, the Act requires manufacturers and sellers

More information

Tenants Rights in Foreclosure 1

Tenants Rights in Foreclosure 1 Tenants Rights in Foreclosure 1 1. I just found out that the home I rent is in foreclosure. What should I do? You should first determine the type of foreclosure. There are two types, one with court involvement

More information

OFFER 3 ACCEPTANCE.5 CONSIDERATION.6 PROMISSORY ESTOPPEL. 7 INTENTION.7 CERTAINTY/COMPLETENESS. 9 CAPACITY. 11 PRIVITY. 12 FORMALITIES.

OFFER 3 ACCEPTANCE.5 CONSIDERATION.6 PROMISSORY ESTOPPEL. 7 INTENTION.7 CERTAINTY/COMPLETENESS. 9 CAPACITY. 11 PRIVITY. 12 FORMALITIES. CONTRACTS OFFER 3 ACCEPTANCE.....5 CONSIDERATION...6 PROMISSORY ESTOPPEL.... 7 INTENTION..7 CERTAINTY/COMPLETENESS... 9 CAPACITY.. 11 PRIVITY.. 12 FORMALITIES. 13 ILLEGALITY. 14 TERMS.... 16 CONSTRUCTION.....19

More information

The Sale of Goods Act,1930. Unit IV Unpaid Seller. By: Dr. Anju Gupta

The Sale of Goods Act,1930. Unit IV Unpaid Seller. By: Dr. Anju Gupta The Sale of Goods Act,1930 Unit IV Unpaid Seller By: Dr. Anju Gupta LEARNING OBJECTIVES Understand the concept of Unpaid Seller Know the rights of Unpaid Seller Analyze the effect of sub-sale or pledge

More information

Charleston County School District. Procurement Services

Charleston County School District. Procurement Services Vendor Guide Procurement Services July 2006 Vendor Guide Page 1 Table of Contents Introduction...2 About Charleston School District...2 About Procurement Servcies...2 District Procurement Code...3 Direct

More information

How to Get Your Landlord To Make Repairs... Rent Escrow

How to Get Your Landlord To Make Repairs... Rent Escrow How to Get Your Landlord To Make Repairs... Rent Escrow TABLE OF CONTENTS Residential Landlords Duties..................................................... 2 What to do if Your Landlord Will Not Make Repairs...3

More information

Why LEASE PURCHASE is fast becoming the seller's First Choice as an alternative to the traditional way of Selling Your Home FAST!

Why LEASE PURCHASE is fast becoming the seller's First Choice as an alternative to the traditional way of Selling Your Home FAST! A $29.95 Value, Yours FREE Why LEASE PURCHASE is fast becoming the seller's First Choice as an alternative to the traditional way of Selling Your Home FAST! RHB Results Home Buyers, Inc. 800-478-xxxx *

More information

A Level And As Level Law

A Level And As Level Law A Level And As Level Law (1) : 1389 .1349 : (1) A level and as level law :. /.1389 : :. 240 : 978-600-90507-2-7 : : A level and as level law : " ".. :.( ) :. - - - :. - :. : PE1127/ 7 2501431389: 428/6402434

More information

CLAW 1001 Notes. Table of Contents

CLAW 1001 Notes. Table of Contents CLAW 1001 Notes Table of Contents CLAW 1001 Notes 1 Table of Contents 1 Topic 1: Legal System and the Administration of Law (W1) 3 1. The Australian Legal System 3 2. Features of Common Law systems: 3

More information

Contracts 101. Colette Massengale, Esq. Jason Brand, Esq. Legal Affairs Maryland Association of REALTORS

Contracts 101. Colette Massengale, Esq. Jason Brand, Esq. Legal Affairs Maryland Association of REALTORS Contracts 101 Colette Massengale, Esq. Jason Brand, Esq. Legal Affairs Maryland Association of REALTORS What is the Legal Definition of a Contract? A contract is a promise or set of promises, for breach

More information

VIRGINIA CONTRACTS & SALES DISTINCTIONS PROFESSOR DAVID FRISCH UNIVERSITY OF RICHMOND SCHOOL OF LAW

VIRGINIA CONTRACTS & SALES DISTINCTIONS PROFESSOR DAVID FRISCH UNIVERSITY OF RICHMOND SCHOOL OF LAW VIRGINIA CONTRACTS & SALES DISTINCTIONS PROFESSOR DAVID FRISCH UNIVERSITY OF RICHMOND SCHOOL OF LAW CHAPTER 1: CONTRACT FORMATION A. SOURCE OF LAW 1. Two Competing Sources a. Common Law of Contracts b.

More information

Pre-Purchase Building Inspections Matt Huckerby Partner Moray & Agnew. Sydney Melbourne Brisbane Canberra Newcastle

Pre-Purchase Building Inspections Matt Huckerby Partner Moray & Agnew. Sydney Melbourne Brisbane Canberra Newcastle Pre-Purchase Building Inspections Matt Huckerby Partner Moray & Agnew Objectives Understand your potential exposure in preparing prepurchase building reports under contract and tort law. Understand: the

More information

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Spring Risk of Loss

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Spring Risk of Loss Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Risk of Loss I. Basic Principle: The UCC provides rules to determine which party to a transaction

More information

FROM THE DESK OF THE DIRECTOR OF MAINTENANCE JOSH ZUPFER

FROM THE DESK OF THE DIRECTOR OF MAINTENANCE JOSH ZUPFER FROM THE DESK OF THE DIRECTOR OF MAINTENANCE JOSH ZUPFER 6101 Baker Road, Suite 200 Minnetonka, MN 55345 O 952.470.8888 F 763.545.1455 jzupfer@renterswarehouse.com www.renterswarehouse.com Dear Home Owner,

More information

Terms & Conditions. Cleveland, OH Toledo, OH Pharr, TX. Universal Metal Products, Inc Lakeland Boulevard Cleveland, OH

Terms & Conditions. Cleveland, OH Toledo, OH Pharr, TX. Universal Metal Products, Inc Lakeland Boulevard Cleveland, OH ( Seller ) provides the following Standard Terms and Conditions of Sale ( Terms and Conditions ), which apply to all quotations and sales made by Seller. THESE STANDARD TERMS AND CONDITIONS OF SALE MAY,

More information

Already have a voucher and have questions? The following information might be helpful. If you still have questions, call (619)

Already have a voucher and have questions? The following information might be helpful. If you still have questions, call (619) FAQ for Participants Already have a voucher and have questions? The following information might be helpful. If you still have questions, call (619) 336-4254. 1. Now that I have a voucher, how do I use

More information

MODULE 4-A: REVIEW OF THE LAW OF CONTRACTS

MODULE 4-A: REVIEW OF THE LAW OF CONTRACTS MODULE 4-A: REVIEW OF THE LAW OF CONTRACTS LEARNING OBJECTIVES The study of real estate entails many subjects. Contracts form the basis for all agreements used in real estate. The law of contracts is complex.

More information

University of Miami School of Law Contracts - Law 12-B Professor Caroline Bradley Fall 2016 Final Exam Wednesday, December 7, 2016

University of Miami School of Law Contracts - Law 12-B Professor Caroline Bradley Fall 2016 Final Exam Wednesday, December 7, 2016 General Instructions University of Miami School of Law Contracts - Law 12-B Professor Caroline Bradley Fall 2016 Final Exam Wednesday, December 7, 2016 Try to show thought and critical analysis of the

More information

GOOD FAITH. Every party to every contract for the sale or lease of goods owes every other party a duty of good faith.

GOOD FAITH. Every party to every contract for the sale or lease of goods owes every other party a duty of good faith. GOOD FAITH Every party to every contract for the sale or lease of goods owes every other party a duty of good faith. As of January 1, 2011, twenty-eight states enactments of UCC Article 1 define good faith

More information

[as between seller and buyer] I. Basic rules

[as between seller and buyer] I. Basic rules Sale of goods: Passing of proper t y [as between seller and buyer] I. Basic rules (a) No property can pass in unascertained goods (s.18)! Re Wait: equitable interests play no part in sale of goods " Parties

More information

Iran Divestment Act Certification Frequently Asked Questions

Iran Divestment Act Certification Frequently Asked Questions 1. When should the certification form be signed and where does it fit within the procurement process? Please add it as an attachment to your solicitation document and have it returned with the Vendor's

More information

Powers of Attorney. It is important to pick someone you trust deeply. Remember they will have control of things like your bank accounts or property.

Powers of Attorney. It is important to pick someone you trust deeply. Remember they will have control of things like your bank accounts or property. Fact Sheet Powers of Attorney What is a power of attorney? A power of attorney is written permission for someone to take care of property or money matters for you, in whatever way you want. In a power

More information

Paper 3 - Fundamentals of Laws and Ethics

Paper 3 - Fundamentals of Laws and Ethics Paper 3 - Fundamentals of Laws and Ethics Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 3 - Fundamentals of Laws and Ethics Full

More information

Agricultural Leasing in Maryland

Agricultural Leasing in Maryland Agricultural Leasing in Maryland By: Paul Goeringer, Research Associate, Center for Agricultural and Natural Resource Policy Note: This publication is intended to provide general information about legal

More information

CONTRACTS Final Examination Spring 1999 Instructor: Craig Smith. Time Allotted - Three Hours

CONTRACTS Final Examination Spring 1999 Instructor: Craig Smith. Time Allotted - Three Hours CONTRACTS Final Examination Spring 1999 Instructor: Craig Smith Time Allotted - Three Hours An answer should demonstrate your ability to analyze the facts presented by the question, to select the material

More information

Classifying Contracts. Contracts can be created orally.

Classifying Contracts. Contracts can be created orally. Contracts 1 Classifying Contracts Contracts can be created orally. 2 Classifying Contracts Contracts can be created in writing. 3 Classifying Contracts The Statute of Frauds states that most real estate

More information

Real Estate Assessments and Taxes - Understanding the Process

Real Estate Assessments and Taxes - Understanding the Process Real Estate Assessments and Taxes - Understanding the Process The three basic issues in understanding your real estate assessments and taxes: Assessing and the Fair Market Value of Your Home or Business

More information

AGENCY & PARTNERSHIP 3 February 1998

AGENCY & PARTNERSHIP 3 February 1998 AGENCY & PARTNERSHIP 3 February 1998 Partnership is Essentially an Agency Relation (ergo, they go together) Agency issues, WON T Show up alone on the Exam. They will be buried in a contract or tort fact

More information

WHEN YOU OWE RENT TO YOUR LANDLORD

WHEN YOU OWE RENT TO YOUR LANDLORD Tip Sheet For Tenants WHEN YOU OWE RENT TO YOUR LANDLORD Prepared by the Tenant Duty Counsel Program and funded by Legal Aid Ontario This publication contains general information intended to assist the

More information

property even if the parties have no lease arrangement. This is often called an option contract.

property even if the parties have no lease arrangement. This is often called an option contract. In the farming community, lease-to-own refers to certain methods to achieve land ownership. Purchasing a farm with conventional financing is simply not an option (or the best option) for many. Lease-to-own

More information

ACCAspace ACCA F4. Provided by ACCA Research Institute. Corporate and Business Law (CL) 公司法与商法 ACCA Lecturer: Eli Qiu. ACCAspace 中国 ACCA 特许公认会计师教育平台

ACCAspace ACCA F4. Provided by ACCA Research Institute. Corporate and Business Law (CL) 公司法与商法 ACCA Lecturer: Eli Qiu. ACCAspace 中国 ACCA 特许公认会计师教育平台 ACCAspace Provided by ACCA Research Institute ACCA F4 Corporate and Business Law (CL) 公司法与商法 ACCA Lecturer: Eli Qiu ACCAspace 中国 ACCA 特许公认会计师教育平台 Copyright ACCAspace.com Chapter 3: Formation of contract

More information

Copy intended for the tenant / landlord / Ghent University / Registration Office

Copy intended for the tenant / landlord / Ghent University / Registration Office Model lease contract for student accommodation This model contract was created by Kotatgent. This contract attaches equal importance to the rights and duties of the student and the landlord. Do you have

More information

Contracts, the UCC, and the Vienna Convention on International Sales of Goods. What every US commercial lawyer needs to know

Contracts, the UCC, and the Vienna Convention on International Sales of Goods. What every US commercial lawyer needs to know Contracts, the UCC, and the Vienna Convention on International Sales of Goods What every US commercial lawyer needs to know Convention on the International Sale of Goods 1980 CISG Vienna Convention Uniform

More information

PRIVITY OF CONTRACT. An assignment of all rights implies both an assignment and a delegation.

PRIVITY OF CONTRACT. An assignment of all rights implies both an assignment and a delegation. PRIVITY OF CONTRACT As a general rule, only the parties to a contract the promisor and the promisee owe any duties and enjoy any rights arising from the contract. Common law recognizes three exceptions:

More information

2. Offer and Acceptance is also known as the of the, or.

2. Offer and Acceptance is also known as the of the, or. CHAPTER 1 - EXERCISES Note: Before completing the short-answer questions in this and all chapters, please carefully review the Instructions Page for more information about the function and purpose of these

More information

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Fall Sales Contract Terms

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Fall Sales Contract Terms Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Sales Contract Terms I. Express and Implied-in-Fact Terms A. The Article 2 Parol Evidence Rule: 2-202

More information

Chapter 11 Questions: Client Representation Agreements

Chapter 11 Questions: Client Representation Agreements Chapter 11 Questions: Client Representation Agreements 1. In a buyer representation agreement, the broker acts as the agent of the buyer and must protect the buyer s interests a. at all points in the transaction.

More information

Contracts PART 1 - INTRODUCTION. Seminar 1: Introduction. Freedom of contract LAWS5002

Contracts PART 1 - INTRODUCTION. Seminar 1: Introduction. Freedom of contract LAWS5002 LAWS5002 Contracts PART 1 - INTRODUCTION Seminar 1: Introduction Key elements of a contract A. Offer B. Acceptance C. Consideration (bargain) D. Intention to create legal relations E. Writing requirement

More information

SAMPLE ANSWERS TO SHORT ANSWER QUESTIONS FROM SPRING 2005 AND SPRING 2006 EXAMS

SAMPLE ANSWERS TO SHORT ANSWER QUESTIONS FROM SPRING 2005 AND SPRING 2006 EXAMS Question #4 Spring 2005: Gertrude currently holds a Vested Remainder Subject to Open in a Fee Simple Absolute. Gertrude s interest is in the language to my grandchildren at the end of the devise because

More information

Proposal. for a new Timeshare Directive. by the Timeshare Consumers Association (TCA)

Proposal. for a new Timeshare Directive. by the Timeshare Consumers Association (TCA) Proposal for a new Timeshare Directive by the Timeshare Consumers Association (TCA) NOTE: Reasons are in document tca_sanco_reasons.doc/pdf 1. Definition and Application 1.1. Timeshare is the provision

More information

NATIONAL INTERACTIVE STUDY GROUP UNIT 5 QUESTIONS

NATIONAL INTERACTIVE STUDY GROUP UNIT 5 QUESTIONS NATIONAL INTERACTIVE STUDY GROUP UNIT 5 QUESTIONS National Interactive Study Group 2 SESSION 5 JOHN MATHIS Notes for Tonight 1. PLEASE USE MUTE *6 TO SILENCE YOUR PHONE # 6 TO UNMUTE. 3 2. Chat is the

More information

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Fall Leases

Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Fall Leases Sales and Leases Professor Keith A. Rowley William S. Boyd School of Law University of Nevada Las Vegas Leases I. Governing Law: Article 2A governs [a]ny transaction, regardless of form, that creates a

More information

STUDENT CLASS DATE. Directions: Fill in the blank(s) with the most appropriate term or phrase to complete the sentence. Answers

STUDENT CLASS DATE. Directions: Fill in the blank(s) with the most appropriate term or phrase to complete the sentence. Answers LESSON 13 1 QUIZ Legal Concepts Directions: Fill in the blank(s) with the most appropriate term or phrase to complete the sentence. 1. A(n)? occurs when the buyer delivers the agreed price and the seller

More information

CONTRACTS MID-TERM EXAMINATION Santa Barbara/Ventura Colleges of Law Instructor: Craig Smith Fall 2013

CONTRACTS MID-TERM EXAMINATION Santa Barbara/Ventura Colleges of Law Instructor: Craig Smith Fall 2013 CONTRACTS MID-TERM EXAMINATION Santa Barbara/Ventura Colleges of Law Instructor: Craig Smith Fall 2013 QUESTION 1 Moe, the owner of Blackacre, a single-family home, told Curly that he wanted to sell Blackacre

More information

TERMS AND CONDITIONS OF SALE

TERMS AND CONDITIONS OF SALE TERMS AND CONDITIONS OF SALE www.admiralboxco.com 1. Parties. Seller means Admiral Box, LLC, a Michigan limited liability company d/b/a Admiral Box Company. Buyer means the entity or person submitting

More information

POLICIES AND GENERAL TERMS & CONDITIONS

POLICIES AND GENERAL TERMS & CONDITIONS POLICIES AND GENERAL TERMS & CONDITIONS Of the business company Pebopro s.r.o. with residence at 75356 Záhorská 178, Opatovice, Czech Republic. Registered Identification Number: 05001731 Entered into the

More information

Looking After Your Move

Looking After Your Move Looking After Your Move Your Guide to Buying and Selling Your Home Tel: 0114 218 4000 E. info@tayloremmet.co.uk www.tayloremmet.co.uk Contents Your move.. 3 Important Dates.. 3 Up to Exchange of Contracts..

More information

Deed of Guarantee (Limited)

Deed of Guarantee (Limited) Deed of Guarantee (Limited) IMPORTANT WARNING TO INTENDED GUARANTOR/S: By signing this document you agree to underwrite the rental and other responsibilities of the Tenant under his/her tenancy agreement.

More information

Exercise 1 Negotiating A Job Salary:

Exercise 1 Negotiating A Job Salary: Exercise 1 Negotiating A Job Salary: Suppose you re searching for your first full time job post-college graduation. You ve been searching for employment for 6 months. Your college roommate informs you

More information

UNIT - 4: UNPAID SELLER

UNIT - 4: UNPAID SELLER 2.44 BUSINESS LAWS UNIT - 4: UNPAID SELLER LEARNING OUTCOMES In this unit, the students would be able to: Understand the concept of Unpaid Seller Know the rights of Unpaid Seller Analyze the effect of

More information

Chapter 5. Competitive Sealed Bidding: Procedure

Chapter 5. Competitive Sealed Bidding: Procedure Chapter 5. Competitive Sealed Bidding: Procedure Summary This chapter provides an overview of the procedure for procuring goods and nonprofessional services using the competitive sealed bidding procedure.

More information

Do You Know Your Rights and Duties As a Renter?

Do You Know Your Rights and Duties As a Renter? Do You Know Your Rights and Duties As a Renter? This brochure covers all Tennessee counties EXCEPT: Anderson, Blount, Bradley, Davidson, Hamilton, Knox, Madison, Maury, Montgomery, Rutherford, Sevier,

More information

Chapter 12: Real Estate Contracts

Chapter 12: Real Estate Contracts Modern Real Estate Practice, 19 th Edition Chapter 12: Real Estate Contracts 1. A void contract is one that a. was not in writing. b. was never legally enforceable. c. was rescindable by agreement. d.

More information