Scenario 1: Jack makes a call to Jill and says that he would buy 40 widgets for $300, but Jill counters the offer with $350 and Jack takes it
Issue: A determination of whether there is a contract between Jack and Jill
Analysis:
Offer: For one to assume that the offer is valid it requires intent, particular or specific terms, and communication by the person offering.
Acceptance: Jill offered $300 for 40 widgets but Jack presented the best deal at 40 widgets for $350 which Jill accepts. As such, one can conclude that there was an acceptance of the counter-offer.
Consideration: The basis of this offer presents a subject matter with a legal value and a bargain of exchange because Jack considers the counter offer of 40 widgets for $350.
Conclusion: The analysis of the elements for the establishment of a contract reflects satisfaction, which implies that there exists a contract between Jack and Jill.
Scenario 2: Sara makes an offer to John to cut his lawn that weekend for $20 when she would be out but Jack does not offer any feedback
Issue: establishing whether there is a contract between Sarah and Jack
Rule: a valid contract is based on three elements, which include offer, acceptance and consideration
Analysis:
Offer: the validity of an offer is based on expression of intent, certain terms, and communication by the person offering.
In this case, Sarah offers Jack a service to cut his lawn when she would be out, which reflects a serious intent. Further, she offers $20 for the service, which indicates the terms of the offer are clear. However, Jack does not communicate which means that there was no communication between the parties. Although, Sarah offers an exchange for the service, there is no consideration.
Acceptance: Sara offered $20 if Jack would cut his lawn over the weekend when she would not be in, but Jack does not offer a feedback hence the offer presented by Sara was not accepted by Jack.
Consideration: although the offer was presented by Sarah it was not considered by Jack, which means that of although the subject matter had a legal value there was no bargain of exchange.
Conclusion: based on the elements which include offer, acceptance and consideration that can be construed to determine the existence of a contract between two parties, this case lacks acceptance and consideration hence there is no contract between Sarah and Jack.
Scenario 3: Jack calls Jill requesting to buy 40 Widgets at $300. However, Jack tells Jill that the best offer he would offer him would be $350. Jack agrees to the offer, but tells Jill that he did not have money, although he would give $20 to keep the offer open for a period of 10 days, which Jill agrees to.
Issue: establishing whether there is a contract between Jack and Jill
Rule: a valid contract is based on three elements, which include offer, acceptance and consideration
Analysis:
Offer: the validity of an offer is based on expression of intent, certain terms, and communication by the person offering.
In this case, Jack makes a call to Jill requesting to buy 40 widgets at $300 but Jack counters the offer presenting that he could only offer the widgets $350. Jack agrees to the offer but presents that he could only $20 and pay the rest in 10 days, which Jill agrees to. This type of a contract is referred to as an optional contract, but there is a subject matter, which are the 40 widgets and an exchange with $350. Jack illustrates a serious intention under definite and certain terms. Further, there is communication between Jack and Jill who are the primary parties. There is an offer and an exchange between Jack and Jill because they all agree on specific terms.
Acceptance: Jack offered to buy 40 widgets from Jill at $300 but the offer was countered with 40 widgets at $350 and the involved parties agreed. As such, one can construe that there was acceptance of the offer.
Consideration: the engagement between Jack and Jill reflected an exchange that was based on legal subject matter that as to be exchanged under agreed terms between Jack and Jill. Hence one can construe that there was a consideration.
Conclusion: The engagement between Jack and Jill meets all the specifications of a legal contract because there was an offer that was accepted under specific consideration.
