2. Termination Flashcards
How may an offer be terminated by law?
Death/Insanity of Offeror
- NOT options contract
Destruction of subject matter
Supervening illegality
How may Offeror revocate his offer?
Direct communication
- Offeree NOT required to read revocation)
Indirect communication
1) Reliable TP source
2) Reasonable person would assume termination based on Offeror’s conduct
Public offer
- Same manner as offer made
- Comparable means as offer made
What is required for a valid options contract to prevent revocation/rejection?
Prevent Offeror’s revocation
1) Open offer
2) Consideration
Prevent Offeree's rejection 1) Open offer 2) Consideration 3) Offeror made NO detrimental reliance on Offeree's rejection => Offer still open for stated period
What is required for Merchant Firm Offer Rule to prevent revocation?
1) Merchant offeror
2) Sale of goods (Article 2)
3) Signed writing
4) Open period
- If stated time => Stated time (open up to 3 months)
- If 3 months after stated time => Open (until Offeror revokes)
- If NO stated time => Reasonable time
What is required for Offeree’s detrimental reliance to prevent revocation?
1) Offeror could reasonably expect Offeree’s detrimental reliance on offer
2) Offeree detrimentally relies on offer
3) Offer becomes options contract
- For ‘reasonable time’
What is required for Offeree’s part performance to prevent revocation?
Unilateral contract
- Must give reasonable time to complete performance
- NOT substantial preparation
Bilateral contract
- Must give time to complete performance
What is required for Offeree’s lapsed acceptance to terminate the offer?
Specified time
Reasonable time
What is required for Offeree to reject an offer?
Express
1) Unequivocal
2) Offeror receives rejection
Counteroffer
- Unequivocal (only if) (new price)
- NOT mere inquiry (what if) (keep old offer under consideration)
