Acceptance

Question 1

An Acceptance is

Answer 1

An objective manifestation of asset to the terms by the offeree to the terms of the offer

Question 2

The Common law uses the

Answer 2

Mirror image rule.

Under the Mirror image rule the terms in the acceptance must match the terms of the offer.

If the terms do not match, it is not an acceptance, it is a counteroffer

Question 3

What are the ways to accept ?

Answer 3

1. By Silence
2. A return promise
3. performance
4. Mailbox Rule

Question 4

Acceptance by silence is valid when ?

Answer 4

If the offeree has reason to know that acceptance can be silence

Question 5

The Mailbox rule

Answer 5

Acceptance is effective on dispatch.

Exception- When a rejection is send first, then an acceptance is sent, the first one to be opened by Offeror governs.

Question 6

The Mailbox rule does not apply in

Answer 6

Option Contracts

Question 7

The Common law uses the Mirror image rule

Answer 7

The Mirror image rule states that the terms in the acceptance must match the terms in the offer or it is not an acceptance it is a counteroffer.

Question 8

In a contract for goods, a seller accepts the offer for the goods by

Answer 8

1) Promising to ship the goods; or
2) Shipping the goods

Question 9

If the seller accepts by shipping the wrong goods then

Answer 9

This is an acceptance of the offer and a breach.

Exception- When the seller seasonably notifies the buyer that the wrong goods are being shipped as an accommodation, then no acceptance occurs and that is a counteroffer

Question 10

The UCC has abandoned the

Answer 10

Mirror image rule

Question 11

Under the UCC, when neither party is a merchant, additional terms

Answer 11

Additional terms to the offer are treated as mere proposals

Question 12

Under the UCC when both parties are merchants, additional terms will come in when

Answer 12

1. Both parties are merchants
2. The new term does not materially alter the deal
3. The initial offer did not expressly limit acceptance to its term
4. The offeror does not object within a reasonable time to the new term

Question 13

Auction Contracts

Answer 13

Each bid is an offer, acceptance of a bid occurs with the fall of a hammer

Question 14

What happens if someone bids exactly when the hammer falls ?

Answer 14

Under the UCC, the auctioneer has discretion to
1) Reopen the bidding; or
2) Declare the auction final

Question 15

In a no reserve auction

Answer 15

The seller cannot withdraw the item after a bid as been received

Question 16

Can bidders retract their offers ?

Answer 16

Yes, as long as the auction is finished. However, if the offer is revoked, this does not revive the prior bid