7. What is a public offer?
8. In what cases are acts and conduct of the proposing successful?
9. Who has a right to accept an offer/ how is an offer rejected?
Exercise 2. Find in the text English equivalents to the following:
Договор на условиях оплаты фактических расходов с начислением определенного процента от этих расходов; договор на условиях оплаты по текущим рыночным ценам; предложение товара или ценных бумаг по твердой цене; приглашение сделать оферту; адресат оферты; оферент; оферта, обращенная к неопределенному кругу лиц; отклонение; аннулирование.
Exercise 3. Consult recommended dictionaries and give words or phrases to the following definitions:
Отзыв акцепта; публичная оферта; извещение об отзыве оферты; безотзывность оферты; приглашение делать оферту; акцепт, полученный с опозданием; отказ от акцепта.
Exercise 4. Be ready to talk on one of the following topics:
1. Identify the three requirements of a valid offer.
2. Differentiate between a public offer and an invitation to trade.
3. Explain acceptance of an offer in the cases of a unilateral contract and a bilateral contract.
4. Discuss the mirror image rule.
5. Relate the various means by which an offer can be revoked.
6. Explain what is meant by a firm offer.
Exercise 5. Make up your own dialog on the case: In Universal Oil Products. v. S.C.M. Corp., the seller sent a written offer to the buyer that did not contain a provision for arbitration of any disputes. The buyer responded with a written purchase order that did contain a provision for arbitration. The court treated the buyers order as a counteroffer, rather that as an acceptance with a proposal for additional terms. Since the seller shipped the goods pursuant to the buyers order, the court found that the seller thereby accepted the counteroffer and became bound to arbitrate.
Exercise 6. Resume in industry buzz: Offer: commitment communicated to identified offeree & containing definite terms
1. Commitment: reas. person hearing words under these circum.
believes speaker intends to enter into K (OBJECTIVE) (Public ad to identified offeree, 1st 10, is an offer)
-> Code's way of objectively determining is course of dealing – worst is actual words used
2. Communicated to ID'd Offeree (ACTUAL KNOWLEDGE)
-> Another can tell him; public offer accepts & is ID'd at same time
3. Containing Definite Terms: must address s/matter of K w/ certainty to be valid a. Real Estate (desc. & price)
b. Goods (quantity, except offers for total requiremts based on past hx or offers for total outputs are based on last yr output or most mfrs)
c. Services (term of e/mt by task or time, unless not stated then at will)
-> All other material terms supplied by ct, but if offer tries to address material term, must do so w/certainty or offer is INVALID
4. Limits on Terminating Offers a. Merchant Firm Offer Rule: Merchant who puts offer in writing & it says will hold open Xtime or indefinitely (Rrrevocable for time stated but not open more than 3 mos. w/o consideration b. Option K (like a mini-K): consideration to hold open or consideration substitute; substitute when offeree detrimentally, reas. & foreseeably relies on offer (sub bid) (detrimental reliance or prom. estoppel used)
c. Offer to Make Unilateral K: to give time to perform. Reasons can't terminate (best to worst) (1) stay open reas. time if perf. Begun (2) reliance by offeree – supplies (3) doctrine of divisibility – reas. time to complete any «in works» (4) implied bilateral prom. to complete by commencing perf.
5. Ways to Terminate b/4 Acceptance a. Revocation by Offeror
(1) Express w/ ID'd offeree efftv when receives it (not read or actually knows of) w/ delivery to offeree, anyone offeree's control
Express w/ public offer revocation same or comparable medium as offer
(2) Implied when offeror does act preventing perf. and when offeree learns of act from reliable source b. Rejection by Offeree (refusal or counteroffer)
(1) Express when offeror receives or anyone in his control (no actual knowledge); can never be revived
(2) Implied (conduct) letting offer lapse past time stated or reas. time c. Operation of Law: s/matter destroyed b/4 accept; supervening illegality; death or incapacity of either offeror or offeree terminates OFFER
Unit 4 Mutual Assent and Defective Agreement Обоюдное согласие и юридически дефектный договор
Для заключения договора необходимо выражение согласованной воли двух сторон (двустороння сделка) либо трех или более сторон (многосторонняя сделка) (раздел I ГК РФ, глава 9 «Сделки»). Сделка, совершенная под влиянием заблуждения, обмана, насилия, угрозы, злонамеренного соглашения представителя одной стороны, а также сделка, которую лицо было вынуждено совершить вследствие стечения обстоятельств на крайне невыгодных для себя условиях, или в тот момент, когда данное лицо не было способно понимать значение своих действий или руководить ими, может быть признана судом недействительной.
List of key terms and word combinations:– business compulsion – понуждение
– concealment – сокрытие, укрывательство; утаивание, умалчивание
– duress – принуждение
– fiduciary relationship – фидуциарные отношения
– fraud – обман; мошенничество
– liable – подлежащий ответственности
– material fact – существенный факт
– misrepresentation – введение в заблуждение; искажение фактов
– mutual assent – обоюдное согласие, совпадение намерений сторон
– nondisclosure – неоглашение, нераскрытие
– rescission – аннулирование, расторжение, прекращение
– undue influence – злоупотребление влиянием; недолжное влияние
Each party to a contract is protected from the chicanery of the other or from certain mistakes that may have crept into their agreement and destroyed mutual assent. If mutual assent has been destroyed, the contract is said to be a defective agreement, and that party is no longer bound to the terms of the agreement. A defective agreement can arise as a result of fraud, misrepresentation, mutual mistake, duress, or undue influence.
A wrongful statement, action, or concealment pertinent to the subject matter of a contract knowingly made to damage the other party defines fraud. If proved, fraud destroys any contract and makes the wrongdoer liable (i.e., legally responsible) to the injured party for all losses that result.
To destroy mutual assent on a claim of active or passive fraud, the complaining, or innocent, party must prove the existence of five elements:
1. The complaining party has to show that the other party made a false representation about some material fact (i.e., an important fact, a fact of substance) involved in the contract. A material fact is very crucial to the terms of the contract.