CONTRACT
OFFER
ACCEPTANCE
CONSIDERATION
An offer is a manifestation of assent to enter into a bargain. Ray v. Eurice Bros.
An acceptance is a manifestation of assent to the terms of the offer. Normile v. Miller.
Consideration exists when there is bargained-for exchange between the parties (both parties put something on the table). Hamer v. Sidway.
True interpretation of an offer is not what the offeror thought it meant or intended for it to mean, but what a reasonable person in the position of the parties thought it meant. Ray v. Eurice Bros.
Where an ad would be perceived by a reasonable person as constituting an offer, the ad will constitute such an offer, despite the offeror’s intent otherwise and despite find print that indicates otherwise. Izadi v. Machado Ford
Ads are not typically offers unless they are clear, definite, and leave nothing open to negotiation and would be considered an offer (and not a joke) by a reasonable person. Leonard v. PepsiCo.
An advertisement is an offer where it is highly specific. Lefkowitz, (the fur coat case – first three customers Sat. morning get a fur coat for $1)
An advertisement is an offer where it offers clear rewards for a certain performance. Carbolic Smoke Ball (where customer were promised money back if product didn’t work).
If an objective, reasonable viewer understood the offer to be made in jest, it did not constitute an offer. Lucy v. Zehmer (Drunk writing contract to sell on napkin).
A counter-offer amounts to a rejection of the original offer. Normile v. Miller.
Offeror has right to revoke offer any time before the offeree accepts. Generally, the revocation must be communicated to the offeree, directly or indirectly (actions that are inconsistent with the offer). Normile v. Miller.
“An offer to enter into a unilateral contract may be withdrawn before the act requested to be done has been performed.” Petterson v. Pattberg
“An offer to sell property may be withdrawn before acceptance without any formal notice to the person to whom the offer is made. It is sufficient if that person has actual knowledge that the person who made the offer has done some act inconsistent with the continuance of the offer, such as selling the p
iment).Hamer v. Sidway
Nothing is consideration that is not regarded as such by both parties. Dougherty v. Salt
The court will not weigh the adequacy of consideration, or insist on a fair or even trade [Classicalist approach]. Batsakis v. Demotsis
Consideration is something given in exchange for a promise or in a reliance upon the promise. Plowman v. Indian Refining Co.
Prior performanceand Moral consideration do not form a valid consideration. Plowman v. Indian Refining Co.
An act which is a detriment to the offeror and a benefit to the offeree is not consideration.Plowman v. Indian Refining Co.
“A prediction of future willingness is not an expression of present willingness and is not a promise.” Batsakis
“Value Received” à offeror may not waive offeree’s lack of considerationà voluntary and unenforceable promise of an executory gift. Dougherty v. Salt
