Which Of The Following Is True Of The Intent Of An Offeror To Be Bound By An Agreement

Which of the following statements provides an accurate description of the enforceable consideration? The extension of an offer is the first step in the drafting of contracts and a pillar of contract law. In order to determine whether it is an offer or a mere invitation to do business, the courts must consider whether the communication has clearly expressed the intention to be contractually bound. Answer the following questions, then click “Submit” to get your score. A contract is an agreement that creates obligations between two or more parties that are legally enforceable. [1] Contracts are ubiquitous in our society and can have virtually any purpose, including real estate, goods, services and intellectual property. However, there is a common thread between all contracts: they all start with an offer. Note that there may be exceptions in cases where a “market price” can be derived. So if you tell your stockbroker to buy 100 shares of Apple, it could be interpreted as a desire to be contractually bound because the market price can be assumed. A supplier must demonstrate its intention to be bound by the target recipient`s acceptance. In one case, the plaintiffs filed a class action lawsuit against a retailer who sent a direct mail that stated that it would provide a free watch to anyone who opened the advertiser`s envelopes. [9] The court upheld the dismissal of the action and concluded that the advertisements are not offers, but invitations to hearings.

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