Stuvia
, Chapter 2 Negotiations
2.1 Reaching an agreement
Preliminary stage = the stage of negotiations. Being the stage prior to the final
agreement between the two parties.
Agreement = Offer and acceptance of that offer.
Invitation to enter into negotiations = when one or two elements are
missing.
Valid offer = when the offer has reached the other party i.e. the offeree, B. This
is often referred to as the ‘’reception theory’’. It does not matter when the offeree
actually reads the offer.
Withdraw = the offer in time the offerer prevents the offer from actually
becoming a valid offer. After withdrawing the offer in time, an offer no longer
exists.
Revoke = A informs B that he is no longer interested in selling goods to B and
the he therefor withdraws his valid offer.
When the offer already has been accepted by the other party it is not
possible to revoke
A B_________B A
1 offer 2 3 4 acceptance 5 6
1. A makes an offer to B
a. Object is described
b. A price is determined
c. The number of objects is stated
2. The offer is delivered to B
3. B considers the offer made by A
4. B sends his acceptance to A
5. B’s acceptance reaches A
6. Revoking an offer after reaching an agreement
2.2 Legal aspects of negotiations
Letter of intent = often used to establish the current status of negotiations
between the parties involved. It is also intended to be a draft version of the final
agreement.
, Chapter 2 Negotiations
2.1 Reaching an agreement
Preliminary stage = the stage of negotiations. Being the stage prior to the final
agreement between the two parties.
Agreement = Offer and acceptance of that offer.
Invitation to enter into negotiations = when one or two elements are
missing.
Valid offer = when the offer has reached the other party i.e. the offeree, B. This
is often referred to as the ‘’reception theory’’. It does not matter when the offeree
actually reads the offer.
Withdraw = the offer in time the offerer prevents the offer from actually
becoming a valid offer. After withdrawing the offer in time, an offer no longer
exists.
Revoke = A informs B that he is no longer interested in selling goods to B and
the he therefor withdraws his valid offer.
When the offer already has been accepted by the other party it is not
possible to revoke
A B_________B A
1 offer 2 3 4 acceptance 5 6
1. A makes an offer to B
a. Object is described
b. A price is determined
c. The number of objects is stated
2. The offer is delivered to B
3. B considers the offer made by A
4. B sends his acceptance to A
5. B’s acceptance reaches A
6. Revoking an offer after reaching an agreement
2.2 Legal aspects of negotiations
Letter of intent = often used to establish the current status of negotiations
between the parties involved. It is also intended to be a draft version of the final
agreement.
