 An offer is a proposal made by one party to enter into a
legally binding contract.
 2 parties to an offer:
 Offeror – the person making the offer
 Offeree – the person who receives the offer
 (Example – Our house construction project in 2015)
 Offeror – Brunet & Sons Construction
 Offeree – The Wedge Family of Bristol
 Made seriously – you intend to enter a legal
agreement
 Came to our home and discussed work
 Definite and certain
 Intent to enter into a legal obligation – discussed cost,
time factor, start and end date
 Communicated to the offeree – by phone, mail, e-
mail, etc.
 Put in writing – Construction Quote/Estimate
 Valid, void, voidable, or unenforceable
 Express or Implied
 Bilateral or Unilateral
 Oral or Written
Type of Contract
Characteristics
Valid
Legally good, legally binding
Void
Missing an element or illegal
Voidable
Able to cancel or get out of (ie. a contract with a minor)
Unenforceable
Court will not uphold (Statute of Limitations)
Express
A contract that may be oral or written
Implied
Comes about from the actions of the parties
(self-service gas station)
Bilateral
Contract that contains 2 promises
Unilateral
Contract that contains a promise by 1 person to do
something, if and when the other party performs some act.
Oral
Created by word of mouth – speaking (“an oral contract is
as good as the paper it is written on”)
Written
Contract that is written down – both parties agree to terms
and sign off on it
 Acceptance must be unconditional
 Must follow the rules regarding the method of
acceptance
 The acceptance must not change any terms of the
original offer.
 Called the mirror image rule –
 Acceptance must exactly mirror or match the offer
 Offeror may say that offer is accepted by a specific time
or action
 Acceptance sent over long distance is in effect when it
is sent
 Offeror can also specify the time by which the
acceptance must be received in order to be effective
Termination of an Offer – 1 of 5 ways:
 Revocation
 Rejection
 Counteroffer
 Expiration of Time
 Death or Insanity
2 rules about revocation:
•Can be revoked any time before it’s accepted
•Revocation becomes effective when it is received
by or communicated to the offeree
 Rejection
 Refusal of an offer by the offeree –
brings the offer to an end.
 If the offeror sets a time limit.
 Example – Eric’s boat
 If the offeror dies or becomes insane before the offer is
accepted, the offer comes to an end.
 While death ends an offer, it does not end a contract,
except for personal services.
 A person owes $$ on a car loan – they die; debts they
leave are paid out of their 'estate' (money and property
they leave behind). If there is no money, the debt is left
unpaid.
 You are a private duty nurse – if you pass away, the
contract ends.
 Counteroffer –
 A counteroffer ends the first offer.
 May look like an offer, but it is not.
Wendell's Furniture
This web site promotes a sale, but it is an invitation to
deal, trade, or make an offer.
Most ads are not offers, but invitations to negotiate.
Dog Walker Contract
• Acceptance of Contract:
• This contract will be accepted and agreed
upon when both parties sign and witness
one another’s signature.
• The dog walking service will begin
within one week of signing.
• Termination of Contract:
• This contract will be terminated in one of 3 ways:
• The death of the animal
• 2 weeks notification by either party of their intent to end the contract
• Failure of the dog walker to fulfill said duties outlined in the contract.
or impossibility of performance (health issues, relocation)