BLAW 3201 Chapter : BLAW Chapter 10 Study Questions
Document Summary
The first requirement for an effective offer is a serious intent on part of the offeror. Serious intent is not determined by the subjective intentions, beliefs, and assumptions of the offeror. Courts usually adhere to the objective theory of contracts in determining whether a contract has been formed. Under this theory, a party"s words and conduct are held to mean whatever a reasonable person in the offeree"s position would think they meant. The court will give words their usual meanings even if it were proved by twenty bishops that the party intended something else. Offers made in obvious anger, jest, or undue excitement do not meet the intent test because a reasonable person would realize that a serious offer was not being made. Because these offers are not effective, an offeree"s acceptance does not create an agreement. An offer can be terminated by the action of the parties in three ways: by revocation, by rejection, or by counteroffer.
