Federal contract law, although the law governing transactions involving the sale of goods has become highly standardized nationwide through widespread adoption of the Uniform Commercial Code. Parties are permitted to problems in contract law cases and materials pdf to arbitrate disputes arising from their contracts. A contract is an agreement between two or more parties creating reciprocal obligations enforceable at law.
The elements of a contract are mutual assent, consideration, legally competent parties and legal purpose. Mutual assent is also known as ratification and meeting of the minds is typically established through the process of offer and acceptance.
However, contracts can also be implied in fact, as discussed below. At common law, the terms of a purported acceptance must be the “mirror image” of the terms of the offer.
Any variation thereof constitutes a counteroffer. An offer is a display of willingness by a promissor to be legally bound by terms they specify, made in a way that would lead a reasonable person in the promisee’s position to understand that an acceptance is being sought and, if made, results in an enforceable contract. Ordinarily, an offeror is permitted to revoke their offer at any time prior to a valid acceptance. This is partially due to the maxim that an offeror is the “master of his offer.
In the case of options, the general rule stated above applies even when the offeror promises to hold the offer open for a certain period of time. 10, and you can have a week to decide. Alice is free to revoke her offer during the week, as long as Bob has not accepted the offer.
1 to keep the offer open for a week. Alice is not permitted to revoke during the week.
A counteroffer is a new offer that varies the terms of the original offer. Therefore, it is simultaneously a rejection of the original offer. At this point Betty has the power of acceptance.
Betty’s response is a rejection of Alan’s offer but gives Alan a new power of acceptance. It is possible to phrase what appears to be a counteroffer so that it does not destroy the original power of acceptance. Alan a new power of acceptance, as she is not making an offer of her own.
Therefore, she is not making a counteroffer either. As such, mere inquiries are not counteroffers.