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Business Law Notes

In: Business and Management

Submitted By asuits
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Ch5 Formation of a Contract: Offer and Acceptance
An invitation is not an offer; a merchant is not obligated to sell to everyone who reads an ad (its supply may be limited) he is the offeree
Both parties must be aware of the offer and counter offers, else any coincidental acceptance under the same terms still don’t qualify as an acceptance
Protection against Standard Form Contracts 1. If business is regulated by govt board, its terms are subject to approval 2. Some segments of the public are offered special protection i.e. consumers 3. For unregulated activity, the public receives as much protection as the courts can find in contract laws
All terms binding?- if offeree convinces courts that she wasn’t aware of a certain term, then the offerer must prove that it made sufficient efforts to make the offeree aware of it, else the offeree is not bound by it
Contract terms on a sign must be evident to offeree AT the time of making contract
How an offer may lapse: 1. Not accepted within specified time 2. Not accepted within reasonable time (if not specified) 3. Either party dies or becomes insane prior to acceptance
Revocation
Offeror may revoke an offer any time before acceptance, even if he promised elsewise. He must provide notice to make it effective
Must revoke before it is accepted
If offeree has sufficient reason to believe that the offer may have been revoked even without notice, the courts will consider it revoked
Offeree Powers
Can bind offeror to keep offer open for a specified time 1. Obtaining written offer under seal 2. Option; pays money to offeror for exclusivity rights and valid acceptance times
An inquiry whether this is the best offer by the offeree isn’t a rejection, the offer still stands
Elements of Acceptance
-must be made in some positive form
Silence as Acceptance 1. If parties have habitually used

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