Vocabulary practice. Give definitions to the terms given below:

Give definitions to the terms given below:

· Duty

· Obligation

· Liability

· Merchant

· Advertisement

· Parties of the contract

TEXT 3

HOW IS AN OFFER ENDED?

Once made, an offer does not last forever. If it is not accepted, it ends without any contract arising:

1. at a prescribed time, if so stated in the offer,

2. at the end of a reasonable length of time if the offer does not state how long it will remain open,

3. by rejection of the offer by the offeree,

4. if the offeree makes a counteroffer,

5. if it is revoked (withdrawn) or modified by the offerer before the offeree accepts, or

6. by the death or insanity of the offeror or offeree.

An offer ends at the time stated in the offer. In making an offer, the offeror may state how and when the offer must be accepted. If the offer does not state how long it will remain open, it terminates at the end of a reasonable length of time.

Reasonable length of time depends upon all the surrounding circumstances. In contrast, the offer to sell the truck and trailer, expensive, durable equipment, would not terminate until a longer time had elapsed, at least several days. Purchase of the truck and trailer would involve a long-term investment of funds. There would be only a limited number of prospective buyers in the immediate local market.

An offer ends if the offeree rejects it. If the offeree clearly rejects the offer, the offer is terminated. This occurs even if a time limit set by the offerer has not expired.

An offer ends if the offeree makes a сounteroffer. Generally an offeree who accepts an offer must accept it exactly as made. If the offeree changes the offerer's terms in any important way, the result is a counteroffer. In making a counteroffer, as in the problem, the offeree says in legal effect, «I refuse your offer; here is my counteroffer». Thus, a counteroffer not only terminates the original offer, but also immediately becomes a new offer. The original offer cannot be accepted by the offeree after a counteroffer has been made unless the original offer is renewed by the offerer.

An offer is usually ended if it is revoked or modified by the offerer before the offeree has accepted. Ordinarily, an offer can be revoked or modified by the offerer at any time before it has been accepted. This is true even if the offerer said the offer would remain open for a definite longer time. The right to withdraw an offer before it is accepted is known as the right of revocation. A modification or revocation is not effective until it is communicated to the offeree or received at the offeree's mailing address. Until then, the offeree is free to accept the offer as originally made.

An offer is terminated by the death or insanity of the offerer or offeree. Contracts are agreements voluntarily entered into by the parties and subject to their control. Death or insanity obviously eliminates such control. Therefore the law acts for these parties when they can no longer act and terminates their offers.

Answer the questions:

1. Does an offer last forever?

2. What is a counteroffer?

3. Name the conditions under which an offer is termi­nated.

Дата добавления: 2015-07-26