[Yvonne570]

This is all before the contract is final – often can be revoked by the offeror or the offeree (except 3):

1) Option contract: offeror is the apartment manager offering the nice 3 bedroom unit with the nice view. Offeree cannot move for another month but really wants that apartment so the offeror offers to hold this unit if the offeree gives them a refundable deposit. Good for 1 month. The offeror is in violation if they sign a contract with another tenant before this time (even if the contract wasn’t in place with the offeree). Consideration was paid with the promise that they would hold the unit for a time period. If the offeree did not pay that deposit, then the consideration given rule is not valid and the manager was in compliance for renting to another party.

****Consideration given can be more than just money, can be promise to not sue, even a promise to hold off on signing the lease on the current unit (which could have a negative impact to avoid the renewal discount because of that offer).

2) Substantial start on a unilateral contract: the offeror offers $100000 if the offeree builds him a custom home. The contract is complete once the performance has been completed. And in this case (substantially completed). The offeree is 80% done completing this home (has plenty of capital to do this – often they require a deposit but this time no consideration was given). The offeror cannot revoke the contract at this point as the offeree has used substantial resources to build this custom home and has created a hardship if revoked. Legally, the offeror cannot quit at this point.

3) Firm offers under the UCC

Contract law as to offers is applicable to a sales contract, with the following exception. A firm offer by a merchant cannot be revoked if the offer:

expresses an intention that it will not be revoked,

is in a writing, and

is signed by the merchant.

For example, on May 15, Smith, a dealer, offered in a signed instrument to sell a stereo set to Bill for $500. By the terms of the offer, Bill was given until June 25 to accept the offer. On June 15, Bill received a writing from Smith revoking the offer. On June 20, Bill wrote Smith, “I hereby accept your offer of May 15.” Since Smith’s offer was a firm offer, which could not be revoked before June 25, there was an enforceable contract.

An express period of irrevocability in the offer cannot exceed three months. If nothing is said as to the duration of the offer, the offer can be revoked after a reasonable time. A firm offer is effective regardless of whether the merchant received any consideration to keep the offer open.

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD