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Contractual Offer

In: Other Topics

Submitted By tmulaku
Words 1533
Pages 7
An offer is a show of willingness to enter into an agreement that involves another person’s acceptance. So an offer, that one accepts becomes an agreement. The offeror is the one who makes the offer and the offeree is the person to whom the offer is made. To be a valid offer (I.e., to constitute an offer), a manifestation of intent to enter into a bargain must have the “3 Cs.”
First, the contract must embody a promise, or commitment as opposed to a statement of present intention or preliminary negotiation. Statements such as “I intend to sell you my car” or “come talk to me about buying my car” are not offers. Saying “if you pay me 100 dollars, I will sell you my car, is a valid offer.
Whether a statement is an offer, depends on whether a reasonable person would believe it to be an offer regardless of the subjective belief, for example, given the trade customs of an industry, would a reasonable person think that an offer was made? The court faced with this situation would consider factors such as; 1) language, whereby the words “offer” or “promise” have been used. Courts also consider the definitiveness of the terms and language of the proposal to help decide whether it is an offer. “First come, first served may indicate an offer because it provides buyers with a clear means of accepting by buying first. 2) Communications made by mass media are usually held to be invitations for offers and not offer themselves. For example, a TV advertisement announcing that a dealer has 100 cars for sale for $1000. The dealer did not make an offer to the entire TV audience (which could be millions) to buy his cars for $ 1000. Rather he invited members of the public to offer to buy his cars. 3) The court will consider the significance of the questioned statements in light of the statements made in previous dealings, if the parties had prior transactions. 4) Finally, courts will…...

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