Legal Concepts of Offers

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Questions and Answers

What does an unconditional offer imply regarding the offeror’s stance on liability?

The offeror denies all liability related to the claim.
The offeror has no intention to settle the matter.
The offeror admits liability for the entire or part of the claim. (correct)
The offeror is only willing to negotiate the claim amount.

What characterizes an offer of compromise?

It is made with a clear admission of complete liability.
It can only be used in cases of full liability.
It obligates the offeree to accept the reduced amount.
It denies any responsibility for the claim but proposes a settlement. (correct)

In the context of legal claims, an unconditional offer acknowledges which of the following?

The offeror's willingness to prolong negotiations.
An acknowledgement of debt regarding the claim. (correct)
The affirmation of the original claim in its entirety.
The offeror's intent to reject future claims.

Which of the following statements is true regarding an offer of compromise?

<p>It offers a resolution without acknowledging liability. (D)</p> Signup and view all the answers

What is a distinguishing feature between an unconditional offer and an offer of compromise?

<p>An unconditional offer admits liability while a compromise denies it. (B)</p> Signup and view all the answers

Flashcards

Unconditional Offer

An offer made by a party admitting liability for all or part of the other party's claim. This means the offeror acknowledges owing a debt related to the claim.

Offer of Compromise

An offer made while denying responsibility for the claim. The offeror might not think they owe anything but is willing to settle for less to avoid a longer legal battle.

Offeror

The party that makes the offer, whether it's unconditional or a compromise.

Offeree

The party who receives the offer, they might be filing a claim against the offeror.

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Offer Amount

The amount of money or other compensation that's being offered to settle a claim.

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Study Notes

Unconditional Offer

An unconditional offer acknowledges debt for all or part of a claim.
The offeror admits liability for the specific portion of the claim referenced.

Offer of Compromise

A compromise offer is made under a denial of liability.
The offeror denies responsibility for part or all of the claim.
Despite the denial, the offeror is willing to settle for a lesser amount than the initial claim.