Problem
Read the overview below and complete the activities that follow.
In this activity, you'll be reviewing a hypothetical situation concerning a contract. You'll use what you've learned in Chapter 9 to determine if the case suggests that a valid offer exists.
Concept Review:
The first element of a contract is the agreement, which is made up of an offer and an acceptance. Formation of the agreement begins when the party initiating the contract, called the offeror, makes an offer to another party, called the offeree. The elements of an offer are (i) serious intent by the offeror to be bound to an agreement, (ii) reasonably definite terms, and (iii) communication to the offeree.
Case:
Read the simulated case below regarding an offer for a contract. Then answer the questions regarding the process of determining a valid offer.
Mark and Lindsay have a verbal conversation. In that conversation, Mark tells Lindsay that he will sell her his used living room couch and loveseat for $125 cash. Lindsay has seen the furniture often and knows that the furniture is used, but the fabric has no holes, stains, or large imperfections. Mark also indicated that he was not joking, and Lindsay had no reason to believe Mark was joking about the sale of the furniture. Lindsay agrees to accept Mark's offer.
Task
Walk through the three steps of a valid offer under common law for the case above. Remember to define the three elements of a valid offer. Do the facts of the case suggest that a valid offer exists? Why or why not?