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Preliminary negotiations and advertisements are generally non-offers, while output and requirements contracts are identified as offers.
An option contract can restrict revocation, acceptance is generally effective on dispatch unless the offer changes that rule, and silence can sometimes constitute acceptance.
Offer, then acceptance; acceptance is effective on dispatch.
1. A party privately intends not to make a deal, but communicates and behaves in a way that would reasonably signal agreement to an outside observer. How does the objective standard assess assent?
2. A proposal is communicated to its recipient and shows intent to contract, but leaves one term unspecified. What additional requirement determines whether it can qualify as an offer?
3. A seller makes an offer, but before acceptance the subject matter is destroyed. What effect can this event have on the offer?
How does the objective standard judge a party’s assent?
By how it reasonably appears to a third party.
What three requirements must an offer satisfy?
Communication to the offeree, intent to contract, and sufficiently definite terms.
What may a court do when an offer’s terms are incomplete?
Fill in the missing terms.
What events can terminate an offer?
Lapse, revocation, rejection, counteroffer, death or incompetency, destruction of the subject matter, or subsequent illegality.
What effect does physical compulsion have on assent?
It makes assent void.
What effect does an improper threat have on a contract?
It makes the contract voidable.
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