Questions On The Decision Of An Option Contract Essay

Rule : : Contract formation requires mutual assent (offer and acceptance), consideration, and no viable defenses to contract formation.

Acceptance-This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed.

Young has just fired Kathy who was her agent. Young places an ad in the classified section of the various local newspapers stating that, "Kathy no longer works for or represents Young in any way". Young would place this ad

The following case American Agricultural Chemical Co. v. Kennedy & Crawford, 103 Va. 171 (Va.1904) it is expressed that; where the consideration for the promise of one party is the promise of the other party, there must be absolute mutuality of engagement, so that each party has the right to hold the other to a positive agreement. Both parties must be bound or neither is bound. A party making a promise is bound to nothing until a promisee, within a reasonable time, engages to do, or else do or begins to do, the thing which is the condition of the first promise. Until such engagement or such doing, the promisor may withdraw his promise, because there is no mutuality, and therefore no consideration for it.

A contract is an agreement that creates obligations that are enforceable by the law. A contract can either be written or spoken. There are elements to a contract that make it valid and binding. This is defined as a clear manifestation of willingness to enter an agreement made by another person with full understanding that their assent to the bargain is an invitation and is concluded. As to whether there was an offer in this case, yes there is an offer. When the salesman offered the buyers time for a test drive and they finally chose and agreed to buy the blue car it was a clear offer.

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

This is a clear expression of a party accepting agreement to the terms of the offer.

The offer and acceptance model is flawed- only an agreement is necessary. In order to fully comprehend this statement, we must first establish what constitutes and offer and what constitutes acceptance. “An offer is a statement by one party of willingness to enter into a contract on stated terms, provided that these terms are, in turn, accepted by the party to whom the offer is addressed”. Acceptance is “…an unqualified expression of ascent to the terms proposed by the offeror”. The “Offer and acceptance model” is based on the court’s adopt the “mirror image” rule of contractual formation. Applying the definitions stated above, we can take this to mean that there must be a clear and unequivocal offer which must be matched by an equally

Wilbert Heikkila listed eight parcels of property for sale and David McLaughlin was interested in purchasing three of them. Mr. Heikkila proposed a counter offer and then withdrew his offer to sell, was a contract ever reached? To conclude on this issue, we have to look at whether there was ever a “meeting of the minds” regarding this transaction. Mr. McLaughlin made an offer to purchase three of the parcels, however when Mr. Heikkila received the offer, he countered and resubmitted to Mr. McLaughlin. At that point, a counter offer rejects the original and becomes the current offer for consideration. Until the two parties come to an agreement on the terms, there is no contract, stated or implied. Mr. Heikkila also has no obligation to

An offeror can revoke his/her offer any time before it is accepted as long as an option has not been given. This is even if he/she has stated that the offer will remain open for a particular period of time because the offeree has not presented consideration. The revocation of an offer must be communicated to the offeree, but this does not have to be done by the offeror as long as the information given is reliable. Applying this to the facts, no option was given and no consideration was given as Amy merely informed Danny that the deal was “subject to confirmation from the nursing home’s accountant that funds could be transferred by the time required”. The revocation was communicated to Amy before she made her acceptance as she was made aware of it via Delphine’s website. The website acted as Delphine’s agent in a similar manner as Berry acted as Dodd’s agent when informing Dickinson of Dodd’s sale to Allan in Dickinson v Dodds.

As stated in the Gould Commercial Code Section 2-207 subsection 1, “A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to

that the document did not appear to be contractual. In D J Hill and Co

Acceptance is a final and unqualified expression of consent to the terms of an offer. An offer may only be accepted by the person to whom it is made unless an agent is authorized to accept on behalf of that person. In addition, an acceptance must be made in the manner requested or authorized by the offering party. If the party to whom the offer is made

ANSWERS TO QUESTION 1 OF CONTRACTS EXAM Exam 5003 – AThe letter sent by B was an offer. An offer may be defined as a communication, having sufficient definiteness to eliminate the need for further negotiation, and creating the impression of manifest intent to enter into a K. An offer may be made to the general public, as in a mass mailing or advertisement, or to an individual. The letter was sufficiently definite. It provided the description of the product, a price, and a quantity. The quantity, while not particular, first created the impression of a great many pieces available. Second, it operated as an offer for a requirement K by UCC 2306. Such a requirement K need not be explicit in the quantity; it is

Acceptance must be absolute and unqualified, which means the promisee’s intention to accept must be clearly understood; it must also be accepted in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted (S. 7(a)(b) CA 1950). Both offer and acceptance can be either expressed or implied. In general, acceptance cannot be withdrawn once it has been made.