Business law db6

A MINIMUM of 1 original post — answering the question completely —

and 2 quality student reply posts is expected. Discussion grades willbe based upon BOTH the quality and quantity of posts. Simplestatements like ‘good job’ or ” I agree’ without additionalsubstantive discussion are NOT considered quality reply posts.

WARNING: Do NOT ‘copy and paste’ or ‘paraphrase’ excessively anotherstudent’s original answer. This is a form of plagiarism and will NOTbe tolerated. You may refer to another student’s work in your studentreply posts if proper credit is given to the original poster /student.

Who keeps the Engagement Ring?

The Facts:

Alex (“A”) proposes marriage to Barbara (“B”)B acceptsA gives B an engagement ringAfter 6 months A and B get tired of each otherThe engagement is broken off

Question:Who keeps the ring?

Post your answer and explanation. Use principles you have learned inmy

Lecture

and Text. This is not based on your opinion alone; yourconclusion MUST have a basis in the Law, therefore: YOU MUST refer tothe Law and legal principles (say which one(s) and where you foundthem PRECISELY (“in the Textbook” is not good enough)Comment on a classmate postings. AGAIN – make reference to the legalprinciples you have learned in my Lectures, the Text and/or web basedresources. YOU MUST SUPPORT YOUR ANSWER BY REFERRING TO ANY OF THESERESOURCES; AN UNSUPPORTED ANSWER = AN AUTOMATIC “F”. Note: I am notlooking for the correct answer (this is NOT Law School)… I just wanta coherent answer. Do your best, make an honest effort.

Lecture

The Overall Framework

In Unit 5, covering Chapter 9, I mentioned that in order for theCourts to determine that there is a Contract a number of elements mustexist. Two of these elements are an

Offer

and an

Acceptance

. We willtake these one at a time.Please note that we are dealing with the Common Law of Contract inthis Lesson, not the UCC. The UCC (“Uniform Commercial Code”) will becovered in the next Unit.

Offer

This is the first step in the formation of a contract. The Courts lookfor an objective sign that one party (“A”) wants to make a legallyenforceable agreement with another party (‘B”). “A” is called the“offeror” and “B” is called the “offeree”. Here the characteristics ofthe Offer that must exist:A. IntentThe offer must have been intended to be on offer and A mustcommunicate the offer to B.B. Definiteness of TermsThe offer must contain all the terms of the offer, nothing can beambiguous or open-ended.Special Problem Areas:Advertisements, Rewards, Auctions, and Bids are all types of offersthat have to be dealt with specifically. The

Leonard v. Pepsico

, Inc.case (link to this Case is in the Unit) illustrates how anadvertisement could possibly obligate the advertiser when thereappears to be an intention to be bound by the ad but there isambiguity or mistake in the ad. In the Pepsico case, Pepsico was notbound, If they were, it would have been very expensive.

Other features of the principles surrounding Offers:

Termination of the OfferThe general rule is that all Offers are revocable (can be takenoff-the table) but Offers involving Options; Offers for UnilateralContracts (see the previous Unit); Promissory Estoppel; and FirmOffers under the UCC can prevent revocation.

Rejection:If an offeror does not accept the Offer it could either an outrightI-don’t-want-to-deal-with-you or the offeror could make acounter-offer. The process of bargaining is sill going on. B couldthen become the offeror and accept A’s offer (which is actually acounteroffer) and the Contract could be formed at this point.

Other ways an offer could end:If either A or B die or become insane, if the subject matter of theContract is destroyed, or if suddenly a law is passed that makes thecompletion of the Contract illegal (e.g., an international boycott),the the Offer is terminated, as it is said, “by operation of law.” .

Acceptance

In order for a Contract to be formed, the Offer must be accepted.Acceptance has various legal characteristics. These characteristicsare all part of what the offeree manifests, namely: intention,accepting the terms, and communicationOnce again, let’s remember that there is a difference between thecommon law rules and the UCC.

The common law requires that the Acceptance must be the same as theOffer: that is, there can be no additional terms in the Acceptance.The UCC (as I said, more about this in Unit 6) is far more flexible tothe extent that the doctrine of the “Battle of the Forms” has emerged.Two entities may be doing business over a long period of time, andover a distance in miles, and in the course of their dealings one ofthe parties alters that terms of the arrangement. For the most part,business dealings involving the UCC are not conduced face to face andcertain elements of the written portion of the dealings — the Forms –can be changed while the dealings continue. The litigation in thiscase involves which party will be responsible for a cost resultingfrom a unilateral change in the ongoing Contract.Communication of the Acceptance is a requirement. In today’s age ofhuge variation in the types of communication that is at everyone’sdisposal, the rigid common law rules have been overtaken by events sothat in business dealings under the UCC, a standard of reasonablenessis applied.

Consideration

This is another characteristic that the Courts require for there to bea Contract. The term “consideration” for some might be a curious typeof word. I recommend that you think of it as “value”: something ofvalue that the parties promise to exchange, or it is bargained for andgiven in exchange for an act or a promise.In the

Brads v. First Baptist Church

case, (link to this Case is inthe Unit) the dispute was over whether the pastor could collect themoney the congregation had promised him. He had to prove that he hadgiven something of value in exchange for getting the money.

Recall the doctrine of promissory estoppel discussed in Lecture 5.This doctrine turns up again in the discussion of Consideration (onpage 405).

WEB LINKS

Leonard v. PepsicoBrads v. First Baptist Church

Resource for Business Contracts

https://scholar.google.com/scholar_case?case=14010883517992816574&hl=en&as_sdt=2&as_vis=1&oi=scholarr

https://scholar.google.com/scholar_case?case=5258328468532130164&hl=en&as_sdt=2&as_vis=1&oi=scholarr

https://www.allbusiness.com/what-makes-a-valid-contract-734-1.html