Answer to Question 1
A valid offer includes three requirements:
1. It must be definite: A contract will not be enforced unless the court can ascertain what the parties agreed to. The offeror's intentions are ascertained from the offer, and these intentions cannot be ascertained unless the offer is definite.Terms usually required to be stated would include who the offeree is; the subject matter of the offer; and the price, quantity, and time of performance.
2. It must appear to be seriously intended: One may make an offer in jest, banter, fear, or extreme anger, and if this fact is known or should be known by the offeree because of the surrounding circumstances, no contract is formed. There are times when the offer is not seriously intended, but the offeree has no way of knowing this. In that event, if the offer is accepted, a binding contract results.
3. It must be communicated to the offeree: Until the offeror makes the offer known to the offeree, it is not certain that it is intended that the offeree may accept and thereby impose a binding contract. Accordingly, the offeree cannot accept an offer until the offeror has communicated the offer to the offeree.
Answer to Question 2
A
