Offer Flashcards
(2 cards)
Offer
Manifestation of willingness to enter into a bargain so made as to justify another person’s understanding that his assent is invited and will conclude the bargain.
i. Can only be accepted by the person to whom the offer was made
ii. The pertinent inquiry is whether the individual to whom the communication was made had reason to believe that it was intended as an offer
iii. Unless otherwise indicated by the language or circumstances, an offer will be treated as inviting acceptance in any manner that is reasonable under the circumstances
iv. In the case of doubt an offer is interpreted as inviting the offeree to accept either by promising to perform what the offeror requests or by rendering the performance the offeree chooses
v. Apply Objective Theory to determine if offer is a valid offer
Advertisements
Generally not offers because they do not contain sufficient commitment to sell. Too vague regarding quantity, duration etc.
i. Ad Exception-If the advertisement contains specific words of commitment, especially a promise to sell a particular number of units, or to sell the items in a particular manner, then it may be an offer
ii. Reward-Words of commitment (give us this and we’ll give you that) because the advertiser is committing himself to take certain action in response to the consumer’s action. A person who does the act without knowing about the reward cannot claim it
iii. Auctions-The auctioneer, by opening the bidding on an item, does not make an offer. Instead, he solicits offers (bids) from the audience
iv. Revocation-Power of acceptance is terminated when a notice of termination is given publicly by advertisement or other general notification equal to that given to the offer and no better means of notification is reasonably available
