Commercial Law

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Commercial Law
2010-05-31 21:37:06
Contract Agreement

Chapter 10
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  1. Agreement
    1. Offer - An offer is a manifestation by one party of a willingness to enter into a contract

    2. Offeror - The offeror is the party who make the offer

    3. Offeree - The offeree is the party to whom an offer is made. This party has the power to create an agreement by accepting the term of the offer.
  2. Objective Intent
    The intent to enter into a contract is determined by the objective theory of contract - that is, whether a reasonable person viewing the circumstances would conclude that the parties intended to be legally bound.
  3. Definiteness of Terms
    The term of an offer must be definite so that the agreement between the parties can be determined.
  4. Implied Term
    Reasonable term ( eg price, time for performance) may be implied
  5. Communication
    An offer must be communicated to the offerce by the offeror
  6. Advertisement
    Generally, an advertisement is an invitation to make an offer. However, an advertisement is an offer if it is so definite and specific as to show the advertiser's intent to be bound to the term of the advertisement.
  7. Rewards
    A reward is an offer to create a unilateral contract.
  8. Auctions
    There are two types of Auctions

    1. Auction with reserve. An auction with reserve is an invitation to make an offer. The sellers retains the right to refuse the highest bid and withdraw the good from sale.

    2. Auction without reserve. An auction without reserve is an offer. The seller must accept the highest bid ( above the minimum bid ). This type of auction must be stipulated.