In this problem Finnin, McPherson and Wright (FMW) expressed to negotiate on buying the Honda-Toyota dealership on Lindsay. Based on the proposed agreement, FMW should pay a certain amount of $1.1million of the stock of Lindsay. And so, this case should be based under the common law. Common law governs the contracts for services, intangible assets and other contracts not governed by the Uniform Commercial Code (Mallor, Barnes, Bowers, Langvardt, 2013). Formation of the contract under the common law includes an offer, acceptance and consideration. And in order for an offer to be binding the offeree (the person to whom the offer is made) must accept the offer. An offer gives the power of acceptance to another party and includes the agreements essential elements, which must be definite and certain. …show more content…
In this case, Lindsay acted as the offeror and FMW is the offeree. One of the arguments relative to this case is that FMW had signed the agreement they received from Lindsay(supposed to be an acceptance of the offer), however they made some modifications in the agreement by changing the agreed stock purchase price of $1.1 million to the purchase price of $700,000 in Exhibit A and removing all references related on the sale of goodwill. In common law contract, the acceptance must be a mirror image of the offer to constitute valid acceptance (Magee v. Garreau, 2002). This means that the acceptance must be precisely the same as the offer. So, if the acceptance is not exactly the same, then it will fail to meet the requirements of acceptance and will not constitute a valid element of the formation in contract. Because FMW modified the amount of the purchase price of $1.1million to $700,000 in Exhibit A, though they’ve
20) With regard to consideration in a sales contract, the UCC differs from the common law in that
There are six elements to determine if there is a legally binding contract between the offeror (Elvis Eggplant) and offeree (Mr. Manfredi). Elements for a legally binding contract are intention, agreement, consideration, legal capacity, genuine consent and legality of objects. Based on the information given in this case Mr. Manfredi and Elvis Eggplant have entered into a legally binding contract. Both parties had the intention to agree for a legally binding commercial contract. Mr. Manfredi accepted the offer from Elvis and paid money to buy the café.
‘Acceptance is a definite and unqualified assent to an offer, on all of its terms. Any acceptance given conditionally will not result in a legally binding agreement.’
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
Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination.
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Under Common Law, for a contract to exist, three elements must be present: an offer, an acceptance and a consideration. The notions of offer and acceptance under Common Law are not fundamentally different from those in French contract law, although their effects may differ. The offer indicates the willingness of a party to enter into a bargain, and the acceptance reflects the agreement of the other party to the offer.
IN CONSIDERATION OF THE COVENANTS and agreements contained in this Sales Agreement the parties to this Agreement agree as follows:
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a
From the given situation, I believe that purchase contract negotiation involves clarification and mutual agreement on the structure and requirements of the contract and I acknowledge the positions of both parties to gain the first step of forming the contract. I utilize active listening and collaborative communication techniques at the first stage of forming a contract. These techniques allow me to focus on both sides must recognize basic areas of contract agreement and the importance of other terms and conditions.
Overview: The Toyota Production System has long been hailed and admired as the source of Toyota’s outstanding performance as a manufacturer. TPS aims to eliminate waste, reduce defects and maximize flow. TPS aims to increase efficiency and productivity by employing a unique production system that cuts costs through continuous improvement. Long term goal is to yield sharp reductions in product development and manufacturing lead times. Toyota want to be the industry best and they stand behind their culture to share the wealth of how they do it.
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
Ford Motor Company was incorporated in Delaware in 1919. They acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. They and their subsidiaries also engage in other businesses, including financing vehicles.
Toyota also has a strong portfolio of prestigious brands such as Prius, Camry, Toyota, Lexus, Corolla, Land cruiser, Hilux and other brands. In fact, the annual Brands Top 100 ranked Toyota a leading brand. This strong branding and market position allows Toyota to market its product with premium prices and high profit margins.
Introduction: In this assignment I will go over a few legal terms in relation to contract law. I will also talk about a few precedents that help explain the law.