Description Assignment #1 1. Read the case Olsen v JohnstonLinks to an external site. 2. Watch th ...
Description Assignment #1 1. Read the case Olsen v JohnstonLinks to an external site. 2. Watch the youtube video onacceptance in contractsLinks to an external site.andthis videoLinks to an external site. 3. Explain the following statements in your own words (do not copy from the case): 1. To form a legally enforceable contract, there must be (1) identifiable parties capable of contracting; (2) their consent; (3) a lawful object; and (4) a sufficient cause or consideration. The parties' consent must be free, mutual, and communicated by each to the other. Consent is not determined by the subjective, undisclosed intent of the parties. (Look at the Lucy v. Zehmer case excerpt on pages 232 and 233 as an example of how one court dealt with this issue.) 2. Johnston argues that her offer required Olsen to reply to Townsend. Johnston contends that Olsen rejected the terms of her offer when she replied directly to Johnston. Johnston argues that Olsen instead presented a counteroffer when Olsen replied directly to Johnston. Johnston denies having accepted Olsen's counteroffer. Thus she contends that the parties formed no enforceable contract 3. "Johnston did not make clear through her words and associated conduct that a reply to Townsend represented the exclusive permissible mode of acceptance. Johnston consequently did not create a condition precedent to Olsen's acceptance. The parties' mutual consent was completed therefore when Olsen accepted Johnston's offer in a reasonable manner. The offer and acceptance satisfied the three other essential elements of a contract. The parties had capacity to contract, the agreement had a lawful object — the sale of the property, and the agreement called for the exchange of sufficient consideration." 4. Who won the case and why. (This must be a full explanation of the court's holding.) Post your work in your assignment box. Remember use your own words, number and REPEAT the original statement followed by your explanation. Assignment is worth 100: 75 points for how well you respond by putting the statements in your own words plus 25 points for professionalism (how well your paper is written and presented and following instructions (15 points will automatically be deducted for not repeating the original statements in your posting.)) Assignment #2 Describe two of any of the following: Current catalogs, advertisements, direct mail advertisements, or online offers, that you have received, seen, or researched and indicate which ones are "Offers" and which ones represent "Preliminary Negotiations." (See below for descriptions. Number your responses and clearly indicate why it is an offer or a preliminary negotiation.) Note, this is a Discussion assignment but no requirement to comment on any of your classmates' posts - I may comment on yours.) VALIDITY OF PARTICULAR KINDS OF OFFERS: A. Offer made in jest: An offer which the offeree knows or should know is made in jest is not a valid offer. Thus even if it is "accepted," no contract is created. B. Preliminary negotiations: If a party who desires to contract solicits bids, this solicitation is not an offer, and cannot be accepted. Instead, it merely serves as a basis for preliminary negotiations. (Example: A says, "I would like to sell my house for at least $100,000." This is almost certainly a solicitation of bids, rather than an offer, so B cannot "accept" by saying, "Here's my check for $100,000.") C. Advertisements: Most advertisements appearing in newspapers, store windows, etc., are not offers to sell. This is because they do not contain sufficient words of commitment to sell. (Example: A circular stating, "Men's jackets, $26 each," would not be an offer to sell all jackets at that price, because it is too vague regarding quantity, duration, etc.) 1. Specific terms: But if the advertisement contains specific words of commitment, especially a promise to sell a particular number of units, then it may be an offer. (Example: "100 men's jackets at $26 apiece, first come first served starting Saturday," is so specific that it probably is an offer.) 2. Words of commitment: Look for words of commitment — these suggest an offer. (Example: "Send three box tops plus $1.95 for your free cotton T-shirt," is an offer even though it is also an advertisement; this is because the advertiser is committing himself to take certain action in response to the consumer's action.) D. Auctions: When an item is put up for auction, this is usually not an offer, but is rather a solicitation of offers (bids) from the audience. So unless the sale is expressly said to be "without reserve," the auctioneer may withdraw the goods from the sale even after the start of bidding.
