Text 4 How an Offer Can Be Kept Open

Generally an offerer is not obliged to keep an offer open for a specified time even if such a promise is made. The offeree has given nothing in exchange for the promise. However, if the offeree gives the offerer something of value (money) in return for a promise to keep the offer open, this undertaking agreement itself is a binding contract. It is called an option. The offer may not be withdrawn during the period of the option.

The offerer keeps the amount paid for an option. Usually, if the offer is accepted within the time allowed, the money paid for the option is applied to the purchase price. However, this must be agreed to in advance.

Statutes provide that a firm offer cannot be revoked within the stated period. A firm offer is a binding offer stating in writing how long it is to be held open. Merchants selling or buying goods usually agree in a signed writing to keep an offer open for a definite time (not more than three months).

Vocabulary

option залоговый договор/ залог

firm offer твердая оферта

undertaking (agreement) принятая обязанность, обязательство, договоренность

underlying agreement основное соглашение

in a signed writing в письменной форме с подписями

binding offer/ contract оферта/ контракт, обязывающее обе стороны

Text 5 The Requirements of an Acceptance

Acceptance occurs when a party to whom an offer has been made agrees to the proposal or does what is proposed. To create an enforceable agreement, acceptance must be:

1 made only by the person or persons to whom the offer was made

2 unconditional, and identical in terms with the offer

3 communicated to the offerer.

An Acceptance Can Be Made Only by the Person(s) to Whom the Offer Was Made

An offer can be made to a particular group or to the public and not to an individual. For example, an offer of a reward may be made to the general public. Any member of the general public, who knows of the offer, may accept it by doing whatever the offer requires.

The Acceptance Must Be Unconditional and Identical with the Offer

The offerer may specify precisely when and how the acceptance is to be made. To complete the agreement, the offeree must then comply with such terms. Any change by the offeree in important terms of the offer results in a counteroffer. This is so even if the result would be more advantageous to the offerer. A counteroffer terminates the original offer.

Suggestions as to routine details of carrying out the contract, or other unimportant matters, do not kill the offer and affect the acceptance.