Overhaulin'

If a question starts with "Tom offers to sale his car to Brad for $5,000. Brady states he would pay $4500?

If a question starts with "Tom offers to sale his car to Brad for $5,000. Brad states he would pay $4500...." Sometimes these questions can be tricky when trying to figure out if this is an "invitation to treat" or an "offer" My question is would this b regarded as ITT or offer?

Public Comments

1. Offer and counter offer.
2. Sounds like a homework question.
3. The question says tom "OFFERS" to sell. You may assume that is an offer.
4. If the facts state that it is an "offer," then it's an offer. This falls in the "duh" category. If the facts state that there is simply some kind of conversation between the parties, then you must analyze the words of the conversation to determine if there was an "offer." Keep in mind that whether something constitutes an "offer" is determined objectively. Subjective intent is not relevant.
5. The key here is to identify whether accepting the statement would constitute an offer. Tom's statement constitutes an offer. If Brad said "OK, I accept", they would have a legally binding contract, and Brad would be obligated to pay the $5000 in exchange for the car. Brad's statement constituted a counter-offer. This is a rejection of the prior offer, and constitutes a new offer. if Tom responded with the statement "OK, I accept", then they would have a contract.