Law for Business
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Transcript of Law for Business
Law for Business
Mr. Bernstein
Contracts: Offer and Acceptance, pp 110-120
October 21-3, 2014
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Law for BusinessMr. Bernstein
ContractsA Private, Voluntary Agreement to Exchange Valuable
Things or PromisesAn Agreement in a Form Courts Will EnforceThe Basis for All Economic Activity
Without solid contract law, how would an economy operate?“Law of the Jungle”Risk Aversion by BusinessesLower Standard of Living (except for the King of the Jungle?)
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Law for BusinessMr. Bernstein
Requirements of an Enforceable Contract1) Offer and Acceptance – Serious, definite offer,
accepted in full2) Genuine Assent – Cannot be based on
deception, an important mistake, or unfair pressure
3) Legality – Items or services exchanged must be legal
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Law for BusinessMr. Bernstein
Requirements of an Enforceable Contract, cont.4) Consideration – Both parties must receive
something of value5) Capacity – Both parties must be legally able to
contract6) Writing – Some agreements must be in writing
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Law for BusinessMr. Bernstein
Legal Offer1) The offerer must appear to intend to create legal
obligation, using reasonable person standard2) Terms must be clear and complete3) Offer must be communicated to an intended
offeree
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Law for BusinessMr. Bernstein
Terminating an OfferOfferer can generally revoke anytimeTime period of offer can be statedIf no time period is stated, reasonable period of time
is used, specific to that industryRejection or counteroffer revokes initial offer – no
right to a “second look”
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Law for BusinessMr. Bernstein
Accepting an OfferMust be made by the party the offer was intended
to reachMust match the terms of the offer fullyMust be communicated to the offerer – generally
silence cannot constitute acceptanceUnilateral acceptance are accepted by performing
actions outlined in contract