Rules
What is not considered an offer?
A gift is not an offer.
Only looks at what is said or written
Universal Objective Test (Acedo)
What is the first factor of Offer?
Language (Definiteness of words)
1st step
1. Willingness to make a commitment
Rule
Offeror can revoke any time prior to acceptance.
What type of agreement is also a contract?
Oral agreement.
Words + circumstances
“In the shoes of”
Positioned Objective Test? (Embry)
What is the second factor of Offer?
Level of detail (location, specific thing)
2nd step
2. Identifiable person
Terminate (4 ways)
(1) rejection or counter-offer
(2) revocation
(3) lapse of time
(4) death or incapacity of either party
*Must meet element of a contract
Definite (Steelworkers, Southworth)
Words + circumstances + social identity
Socially Situated Objective Test? (Steelworker) - Hard to assume
What is the third factor of Offer?
Number of people addressed
3rd step
Addressed to specific person
Sub-rules (3)
1. Offeree does not provide exchange/consideration offer not enforceable
2. Indirect notice is sufficient (actual)
3. Doesn’t have to be express or actual withdrawal
Can offer be implied in fact? What three ways?
Yes, offer can be implied in fact:
(1) through all elements of a contract
(2) implied offer and acceptance
(3) conduct (words and actions)
Dominant test
Positioned Objective Test (Embry)?
Words + circumstances
“In the shoes of”
What are the fourth and fifth factors of Offer?
Trade usage/custom and Prior dealings/prior conversations
4th step
4. Detailed terms
RST 43
Indirect Communication of Revocation
"An offeree's power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect."
RST 24
What is "An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it."
Cases
Embry, Steelworkers, Acedo
What is the sixth factor of offer?
Characterization
5th step
5. Past dealings (community practices, past conversations, past contracts, other circumstances)
RST 25
Option Contracts
"An option contract is a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer."