Quiz 8: Agreement in Traditional and E-Contracts

Business

Standards of contract: Yes in this case Max should get the reward as a contract has been formed in this case. For the formation of a contract there is one party that offers and the next party accepts the offer. In this case both the parties did not directly know each other but still when one made an offer and the other accepted it so they both got involved in a contract. The contract involves a person who makes a promise known as the promise and then the next person is the promisee to whom the promise has been made by the promise to fulfilling an act. As in this case Joe made a promise to pay $5000 for certain information that was given to him by Max, so Max is entitled to the amount of money that had been promised.

Necessary elements for an effective offer: Offer can be defined as an obligation to either carry out or refrain from carrying out specific activities in a period in the future. For the effectiveness of an offer three elements are very essential and they have been stated below: i) The objective intentions of an offer should be very serious. ii) The terms on which a contract is based should be specific or certain so that the court is able to establish the terms for the contract. iii) The communication relating to the offer should be done with the offeree. A binding contract that is legal can be created the minute an efficient offer has been made and the offeree has accepted it. The examples of non-offer have been listed below: i) When opinions are being expressed then it is considered as a non-offer because the intentions are not being displayed for entering into a binding agreement. ii) When there is 'Preliminary Negotiations' that is there is a particular appeal or invitation for a negotiation then it is a non-offer because it only showcases that the people are actually eager to discuss the possibilities that are involved in getting into a contract. iii) Various types of advertisements, catalogues and circulars- generally the advertisements that are there, catalogues of the mail order, lists of the prices and the circular letters are actually considered only as a negotiation of the invitation and not as an offer for the formation of any contract. iv) The next is the 'Auctions'- an auction can't be treated as an offer to get into a contract because it is just that through an auction the seller only offers the particular goods that he wants to sell and it is not an offer to get into any contract. v) Agreements to agree-the agreements to agree are not considered to be binding contracts if they are relating to the terms of a contract for some date in the future.

Offer: An agreement has two sides, one offer and another acceptance. An offer is made by offeror and the other person gives his acceptance for the offer, this constitutes a valid agreement. To constitute a valid contract or agreement the offer made must be effective. To make an offer effective it requires fulfilling certain conditions. These conditions are described below: • The offer must be made with an objective and serious intention to create an agreement. • The terms of an offer must be clear and reasonable, so that its interpretation can be done easily, both by the parties and court. • The offer made must be communicated to the offeree. Some examples of non-offers are: • Goods displayed by shopkeeper in his window. • Expressions of opinions. • Advertisements meant for general public. • Auctions for any article. Hence, it can be concluded that aforementioned are the requirements to make an effective offer.

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