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Questions and Answers
What is an essential element of a contract?
What is an essential element of a contract?
What are the characteristics of an offer?
What are the characteristics of an offer?
What type of offer is a reward poster for the return of a lost item?
What type of offer is a reward poster for the return of a lost item?
How can an offer be terminated?
How can an offer be terminated?
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What is a counter-offer?
What is a counter-offer?
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What is the general rule regarding advertisements?
What is the general rule regarding advertisements?
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When is an advertisement considered an offer?
When is an advertisement considered an offer?
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What happens to the original offer when a counter-offer is made?
What happens to the original offer when a counter-offer is made?
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Study Notes
Definition of an Offer
- An offer is a proposal made by one party to another, indicating a willingness to enter into a contract
- It is an essential element of a contract, as it sets out the terms of the agreement
Characteristics of an Offer
- Clear and specific: The offer must be clear, specific, and unambiguous
- Communicated: The offer must be communicated to the offeree (the person to whom the offer is made)
- Intention to be bound: The offeror (the person making the offer) must intend to be bound by the offer
- Capable of acceptance: The offer must be capable of acceptance by the offeree
Types of Offers
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Unilateral offer: An offer that can be accepted by the offeree without communicating their acceptance to the offeror
- Example: A reward poster for the return of a lost item
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Bilateral offer: An offer that requires the offeree to communicate their acceptance to the offeror
- Example: A job offer that requires the applicant to accept the offer in writing
Termination of an Offer
- Revocation: An offer can be revoked by the offeror at any time before acceptance
- Lapse of time: An offer can lapse if a reasonable time has passed without acceptance
- Rejection: An offer can be terminated by the offeree's rejection of the offer
- Death or incapacity: An offer can be terminated by the death or incapacity of the offeror or offeree
Counter-Offers
- Definition: A counter-offer is a response to an offer that proposes different terms
- Effect: A counter-offer terminates the original offer and becomes a new offer
Advertisement as an Offer
- General rule: An advertisement is generally considered an invitation to treat, rather than an offer
- Exception: An advertisement can be considered an offer if it is clear, specific, and leaves no room for negotiation
Definition and Characteristics of an Offer
- An offer is a proposal made by one party to another, indicating a willingness to enter into a contract
- Essential element of a contract, setting out the terms of the agreement
- Must be clear and specific, communicated to the offeree, and show an intention to be bound
- Must also be capable of acceptance by the offeree
Types of Offers
Unilateral Offers
- Can be accepted by the offeree without communicating their acceptance to the offeror
- Example: A reward poster for the return of a lost item
Bilateral Offers
- Require the offeree to communicate their acceptance to the offeror
- Example: A job offer that requires the applicant to accept the offer in writing
Termination of an Offer
- Revocation: An offer can be revoked by the offeror at any time before acceptance
- Lapse of time: An offer can lapse if a reasonable time has passed without acceptance
- Rejection: An offer can be terminated by the offeree's rejection of the offer
- Death or incapacity: An offer can be terminated by the death or incapacity of the offeror or offeree
Counter-Offers
- A counter-offer is a response to an offer that proposes different terms
- Terminate the original offer and become a new offer
Advertisement as an Offer
- Generally considered an invitation to treat, rather than an offer
- Exception: Can be considered an offer if clear, specific, and leaving no room for negotiation
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Description
Understand the concept of an offer in contract law, including its definition, characteristics, and importance in a contract. Learn about the essential elements of a valid offer.
