Acceptance Flashcards
T or F. The time of the birth of a contract is the time when acceptance is effective
T.
T or F, a complete acceptance must conform to all terms (essential and additional) of that that offer, otherwise its a counter offer (mirror image)
T
T or F, unless specified in the offer, there need not be conformity between the manner in which the offer is made and the manner which the acceptance is made.
T, the law provides presumption that the manner and medium of acceptance is deemed reasonable if made in the same manner and medium as the offer
- Acceptance not in accordance with offer
An acceptance not in accordance with the terms of the offer is deemed to be a counter offer.
What is the mirror image rule?
Acceptance must conform to each item of the offer and must not propose an additional item of its own, nor any modality such as condition or a term.
1938 Reception of revocation, rejection, or acceptance
A written revocation, rejection or acceptance is received when (1) It comes into the possession of the addressee or of a person authorized by him to receive it, or (2) it is deposited in a place the addressee has indicated as the place for this or similar communications
1939 Acceptance by performance
When an offer is invited to accept by performance, it is contemplated that the performance will be completed if it is commenced, a contract is formed when the offer begins the requested performance.
Acceptance by performance have a promissory nature
What happens when an offeror invites an offer to accept by performance?
1 of 3 results may occur.
(1) Contract will be formed ONLY IF the offer completes the performance, and the offer is revocable until performance is complete
(2) Contract will be formed immediately when the offeree begins performing
(3) Contract is not formed at the moment the offeree starts performing but the offer then becomes irrevocable. Obligor is bound to finish
1940 Acceptance only by completed performance
(When in doubt choose 1940 or both)
When a n offer made to a particular offeree can be accepted only by rendering a completed performance, the offeror cannot revoke the offer, once the offeree has begun to perform, for the reasonable time necessary to complete the performance
the offeree however is NOT bound to complete the performance once he has begun.
The offeror duty of performance is condition on completion or tender of the requested performance
1941 Notice of commencement of performance
When commencement of the performance either constitutes acceptance or makes the offer irrevocable, the offeree must give prompt notice of that commencement unless the offeror knows or should know that the offeree has begun to perform. An offeree who fails to give notice is liable for damages.
T or F. An offeree who accepts by performance who fails to notify the offeror of the commencement of performance is liable for reliance damages.
T
1942 Acceptance by silence
When silence leads to the offeror reasonable belief that a contract has been formed, the offer is deemed accepted.
Default rule is CANNOT accept by silence
An exception is forgiving a debt
Or output contract,
