Dataserv and Technology IRAC Analysis

Dataserv (Skjonsby) and Technology (Finerty) Offer

Whether or not Skjonsby of Dataserv made a valid and enforceable offer to sell certain computer features for $100,000 to Finerty of Technology is up to the nature of the offer. In order for an offer to be valid and binding, it must be clearly communicated, including definite terms. This includes the willingness of the offeror to enter into an agreement, the offeror’s intent to form a binding contract, and the explicit communication of the offer and the terms to the offeree. On August 29, Skjonsby proposed to sell these “features” to Finerty, that had previously been purchased in Canada. On September 6, Skjonsby sent Finerty a proposed form contract. Dataserv clearly communicated all the terms necessary to enter into an agreement with Technology, and showed willingness and intent to enter into a contractual agreement. Therefore, Skjonsby did make a valid and binding offer to Finerty to sell computer features for $100,000.

Dataserv and Technology Acceptance

Whether Finerty and Skjonsby’s formed a contract to purchase the computer features for $100,000 is dependant upon if Finerty accepted the terms of Skjonsby’s original offer. The acceptance of an offer may only be valid if it is express or implied directly to the offeror. It must fall within the prescribed time constraints, and acceptance must be absolute and unconditional. Making a counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter offer or there is no contract. On October 1, Finerty responded to Skjonsby’s proposed form contract with a counter offer, stating that “three changed need to be made” and he will sign the contract. This signified a rejection to the original offer. Two of the changes were resolved, and on October 17, Dataserv offered a re