Unit 3: Offer/Acceptance
“Promises Given for Something … Acceptance”
- Unit 3: Offer/Acceptance > Promises Given for Something > Buying Something at a Store
- Unit 3: Offer/Acceptance > Acceptance > Mirror Image Rule
- Unit 3: Offer/Acceptance > Acceptance > Offeror is Master of the Bargain
Unit 3: Offer/Acceptance > Acceptance > Mirror Image Rule
- That’s the very simple idea that you can’t bind a person to his promise, his offer promise, by saying, well, I’ll give you something else than what you have promised.
- So if I walk into the antique store, promise to give the shop owner $500 for that desk, and he says, good, I promise to deliver the umbrella stand over there for you, well, I’m certainly not bound to pay him $500 for the umbrella stand.
- Suppose I walk into that antique store on January 2, and I have my eye on that desk.
- I go to the antique dealer, and I say, I’ll offer you $500 for it.
- I spend some time looking around at the rest of his stock, and I walk out.
- On the other hand, if I walk out and come back after lunch, and the dealer says, yup, I’ll take the $500, I’ll deliver it to you the next day, that’s different, isn’t it? OK, how long is too long? Does it sort of depend? What if the antique dealer sees me getting a doughnut and a cup of coffee across the street? And he walks across the street 10 minutes later, taps me on the shoulder, and says, good, you’ve got a deal.
- If I walk back into his store 10 minutes later, after my doughnut and coffee, and he says, I accept, it’s much more likely that’s going to make a deal and a completed contract.
Unit 3: Offer/Acceptance > Acceptance > Offeror is Master of the Bargain
- You’ve seen these pictures of trading desks and big banks, or hedge funds or places like that.
- What you have is traders sitting in front of multiple screens, following the markets in Tokyo, and London, and Hong Kong, for a particular commodity.
- You want to buy a million euros for delivery the next day.
- How many dollars is that going to cost you? Is that going to cost you $1.38 a euro, or $1.40 a euro, or $1.36 a euro? So what happens is you’re sitting in front of the screen, and the screen for a particular says “1 euro for $1.38.” You look at that for awhile, lets say 10 seconds, and you click “Accept.
- Let’s say I’m a trader in some other commodity- scrap iron.
- I have the computer screens, and I’ve got multiple telephones, and somebody calls me up and says, I’m selling 1,000 tons of scrap steel of type one, highest quality, at $390 a ton.
- Are you interested in buying it? Yeah, I’d love to.