Chapter 6
Offer and Acceptance
6-1
6-2
6-3
Creation of Offers
Termination of Offers
Acceptances
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 1
6-1
Creation of Offers
GOALS
 List the elements required to form a contract
 Describe the requirements of an offer
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 2
WHAT MUST BE IN A CONTRACT?
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Offer and acceptance
Genuine assent
Legality
Consideration
Capacity
Writing
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 3
What elements are required to form a
legally enforceable contract?
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 4
REQUIREMENTS OF AN OFFER
 Contractual intent must be present
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Jests
Statements made in anger or terror
Preliminary negotiations
Social agreements
 Offer must be communicated to the offeree
 Essential terms must be complete and
definite
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 5
What are the requirements of an offer?
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 6
6-2
Termination of Offers
GOALS
 Describe the various ways to end offers
 Explain how an offeree can ensure an offer
will remain open
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 7
HOW CAN OFFERS BE ENDED?
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Revocation by the offeror
Time stated in the offer
Reasonable length of time
Rejection by the offeree
Counteroffer
Death or insanity of either the offeror or offeree
Destruction of the specific subject matter
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 8
Explain two ways in which offers can
be terminated.
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 9
HOW CAN AN OFFER BE KEPT
OPEN?
 Options
 Firm offers
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 10
How could an offeree insure that an offer
will stay open for a set period of time?
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 11
6-3
Acceptances
GOALS
 Discuss the requirements of an effective
acceptance
 Determine at what point in time an
acceptance is effective
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 12
WHAT IS REQUIRED OF AN
ACCEPTANCE?
 Only offerees may accept
 The acceptance must match the offer
 Acceptance must be communicated to the
offeror
 Silence, bilateral, unilateral acceptance
 Modes of contractual communication
 When acceptances are effective
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 13
What are the requirements of an
effective acceptance?
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 14
PREVENT LEGAL DIFFICULTIES
When you seek to enter into a contract . . .
 When negotiating, assume the worst and include
terms in the contract addressing potential problems.
 For important contracts, put offers and acceptances
in writing. If either an offer or an acceptance is made
orally, promptly confirm it in writing.
 Obtain and keep a copy of every important
document you sign.
 Express your intentions in offers and acceptances
with clear, complete, and understandable language.
Continued on the next slide
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 15
PREVENT LEGAL DIFFICULTIES
 Remember that the offeror may specify how and
when the offer must be accepted. Otherwise the
offeree may use the same means used by the
offeror, a faster means, or other reasonable means.
 When appropriate, buy an option, if one is available,
to keep the offer open for as long as you need.
 Remember that for an offeror to withdraw or revoke
an offer, the offeree must receive notice. For speed,
use the telephone, e-mail, or fax machine to
withdraw or revoke an offer.
Law for Business and Personal Use
Chapter 6
© South-Western, a part of Cengage Learning
Slide 16