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A Letter Of Intent : An Offer Is When A Person Or Company Proposes A Deal

Decent Essays
An offer is when a person or company proposes a deal. The offeror is the one who creates the offer, while the offeree is the one whom the offer is directed towards. Under the common law there are statements that do not amount to an offer, problems with the definiteness in an offer, the termination of offers, and the acceptance of offers. Also keep in mind that under the Uniform Commercial Code there are different rules regulating offers and acceptance with the sale of goods. First let’s define statements that do not amount to an offer. These are invitations to bargain, price quotes, letters of intent, advertisements, and auctions. Invitations to bargain is when you set the lowest price you are willing to sell a product at and the other party can negotiate above that. This is not an offer. Price quotas, lists of prices, are also generally not considering an offer, but a request to receive an offer. A letter of intent summarizes the negotiating process between two parties. Be careful with letter of intent because if they language claims the parties intended to be bound then the letter will bind the two parties. Advertisements and auctions are similar to a price quota in the fact that it is merely a request for offers, but is not an offer itself. An offer must also be definite. Offers that are vague or have a problem with definiteness will not be enforced in court because of a lack of information. Language that should be avoided are statements like “a fair wage,” “a
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