OBJECTIVES:

1. Define an offer and acceptance.

2. Identify what terms can be implied in a contract.

3. Describe how offers are terminated by action of the parties.

4. Define a counteroffer and describe its effects.

5. Describe how offers are terminated by operation of law.

6. Define consideration.

7. Identify when ther is inadequacy of consideration.

8. Analyze whether contracts are lacking in consideration.

9. Describe the settlement of claims

10. Apply the doctrine of pormissory estoppel.

A. AGREEMENT

1. A manifestation of two or more persons of the substance of a contract. It requires an offer and an acceptance of that offer.

2. Offeror - the person making the offer.

3. Offeree - the person to whom the offer is made.

4. Offer set form the terms of the offeror. The offeree has the power to create the contract by accepting the offer.

B. REQUIREMENTS OF AN OFFER

1. The three requirements of a valid offer are

a. The objective intent to be bound by the offer,

b. Terms of offer must be definite or reasonable certain., and

c. The offer must be communicated to the offeree.

2. Objective Intent.

a. based upon the reasonable person standard.

b. prreliminary negotiations.

c. jest, anger, or undue excitement.

d. expression of an opinion.

range from very clear opinions of unschooled persons to quaranteed results by professionals.

3. Definiteness of Terms

a. Indefinite terms cannot allow a third party (such as a court) to enforce a contract or fashion an approriate remedy.

b. The offer (and the contract) must contain at the minimum

(1) identification of the parties

(2) identification of the subject matter and quantity

(3) consideration to be paid

(4) time of performance

c. Implied terms historically were not permitted and the a purported contract failed. Now it a term is reasonable certain, then the court may supply a missing or unclear term. Mostly this is limited to time of performance and price, since indentification of the parties and the subject matter and quantity in the contract cannot be reasonable implied.

C. TERMINATION OF THE OFFER

D. ACCEPTANCE

E. CONSIDERATION

F. SPECIAL ISSUES CONCERNING CONSIDERATION

G. PROMISSORY ESTOPPEL