Question

What elements are required for an offer to be effective under the common law?

1) Offeror's serious intention to be bound
2) Definite and certain terms
3) Communication to the offeree
4) Consideration
5) Acceptance by the offeree

Answer 1

Under the common law, an effective offer requires the offeror's serious intention, definite and certain terms, communication to the offeree, consideration, and acceptance by the offeree.

Step-by-step explanation:

Under the common law, there are several elements required for an offer to be effective:

1. Offeror's serious intention to be bound: The offeror must have a genuine intention to enter into a contract and be legally bound by its terms.
2. Definite and certain terms: The offer must contain clear and specific terms, such as the price, quantity, and subject matter of the contract.
3. Communication to the offeree: The offer must be communicated to the offeree, either directly or through a reliable third party.
4. Consideration: Although consideration is not always required for an offer to be effective, it is often a necessary element for the formation of a binding contract. Consideration refers to something of value exchanged between the parties, such as money or a promise to perform a service.
5. Acceptance by the offeree: The offeree must accept the terms of the offer without any conditions or modifications for the offer to be effective.