Acceptance?

Question 1

Ways to Terminate Power of Acceptance

Answer 1

• Rejection
• Revocation
• Lapse of Time
• Counter Offer
• Death of Offeror
• Destruction of subject matter of K

Question 2

Rejection by offeree terminates the power of acceptance

Answer 2

Akers

Question 3

A lapse of time terminates the power of acceptance

Answer 3

Akers/RS 41

Question 4

An offer lapses at the time stated in the offer!

Answer 4

Akers

Question 5

If no time is fixed in the offer, then the offer lapses in a reasonable time

A reasonable time is determined by the context: nature of the K, trade usage, circumstances

Answer 5

Akers

Question 6

An offer made by one to another in a face to face conversation is deemed to !continue only to the close of
their conversation and cannot be accepted thereafter (unless say think about it, get back to me)

Answer 6

Akers/RS 40

Question 7

An offer is rejected when the offeror is justified in inferring from the words or conduct of the offeree that the
offeree intends not to accept the offer or to take it under further advisement

Answer 7

Akers

Question 8

If reasonable person in offeror’s shoes would believe offeree manifested a rejection, rejected offer

Answer 8

Akers

Question 9

Offer gives power of acceptance to offeree

Answer 9

Ardente

Question 10

To be effective an acceptance must be definite and unequivocal

Answer 10

Ardente

Question 11

Qualified acceptance, no K (Can have a request but not a condition)

Answer 11

Ardente

Question 12

Look at language to determine whether acceptance valid (not unexpressed intention)

Answer 12

Ardente

Question 13

Objective K Theory:

Reasonable person in offeror’s shoes needs to know accepted offer

Answer 13

Ardente

Question 14

Where there is an offer to form a bilateral K, the offeree must communicate his acceptance to the offeror before
any contractual obligation can come into being

Answer 14

Ardente

Question 15

A mere mental intent to accept the offer is not sufficient (Needs to be expressed)

Answer 15

Ardente

Question 16

Acceptance may not impose additional conditions on the offer, nor may it add limitations

Answer 16

Ardente

Question 17

An acceptance which is equivocal or upon condition or with a limitation is a counteroffer and requires
acceptance by the original offeror before a contractual relationship can exist

Answer 17

Ardente

Question 18

Promise is illusory if it says “if I want”

Answer 18

Rhode Island

Question 19

Presence of condition does not negate consideration if both sides are bound

Answer 19

Safeco/Eatherly

Question 20

It is not equivocation if the offeree merely puts into words that which was already reasonably implied in the
terms of the offer

Answer 20

Rhode Island

Question 21

An acceptance must receive a reasonable construction and the mere addition of a collateral or immaterial matter
will not prevent the formation of a K

Answer 21

Rhode Island

Question 22

If you relieve offeror of obligation, not a counter offer

Answer 22

Rhode Island

Question 23

The making of a counter offer terminates the power of acceptance

Answer 23

Rhode Island

Question 24

A counter offer gives the offeror the power of acceptance

Answer 24

Rhode Island

Question 25

Acceptance under protest is still an acceptance

Answer 25

Price

Question 26

Signing is one way of manifesting assent – anything reasonably person in offeror’s shoes believes manifests assent=acceptance

Answer 26

Price

Question 27

Did not give a time, place, manner of acceptance – can do what want – gives offeree latitude

Answer 27

RS 60/Dickinson

Question 28

Reasonableness of medium of acceptance - What is customary in similar transactions - What offeror does

Answer 28

RS 65/Dickinson

Question 29

Unless forbidden, use any reasonable medium of acceptance

Answer 29

RS 30/Dickinson

Question 30

What constitutes receipt – comes into possession of person addressed or of some person authorized by him to receive it for him, or when it is deposited in some place which he has authorized as the place for this or similar communications to be deposited for him

Answer 30

RS 68/Dickinson

Question 31

An offeree’s power of acceptance is terminated when offeree receives from offeror a manifestation of intention not to enter K (What a reasonable person in offeree’s shoes thinks offer has been revoked)

Answer 31

RS 42/Dickinson

Question 32

An offeree’s power of acceptance is terminated when the offeror takes: 1. Definite action inconsistent with intention to enter into K 2. And offeror acquires reliable information to that effect

Answer 32

RS 43/Dickinson

Question 33

Revocation of an offer terminates the power of acceptance

Answer 33

Dickinson

Question 34

If need a unique good for which there is not a market/cannot replace, specific performance

Answer 34

Dickinson

Question 35

Option K

Answer 35

Pay someone to make offer irrevocable

Question 36

Bilateral K

Answer 36

Accept with promise (performance may indicate promise)

Question 37

Unilateral K

Answer 37

Accept by performance

Question 38

Preparing to perform has no legal significance

Answer 38

Ragosta

Question 39

Ways to make an offer irrevocable:

Answer 39

1. Pay for it 2. RS 45 3. RS 87(2)

Question 40

When you have a unilateral K, beginning performance makes it an option K (irrevocable for a reasonable amount of time – objective standard based on context) – but you have not accepted

Answer 40

RS 45

Question 41

An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option K to the extent necessary to avoid injustice

Answer 41

RS 87(2)

Question 42

Choice between unilateral and bilateral: 1. Where an offer invites an offeree to choose between acceptance by promise and acceptance by performance, the tender or beginning of the invited performance or a tender or beginning of it is an acceptance by performance 2. Such an acceptance operates as a promise to render complete performance

Answer 42

RS 62

Question 43

in case of doubt, an offer is interpreted as inviting the offeree to accept either by promising to perform what offer requests or by rendering the performance, as the offeree chooses

Answer 43

RS 32 - Read in conjunction with RS 62 | 32: If ambiguous, you get to choose; 62: If get to choose, performing=accepting

Question 44

Power of acceptance dies with offeror because lose ability to revoke when die

Answer 44

Exception: Offer already irrevocable - estate bound to follow through w/ K

Question 45

The power of acceptance may be terminated by the death or destruction of the subject matter of the K

Answer 45

Family Video

Question 46

An acceptance is effective on dispatch aka when put in mail (offer, rejection, revocation are effective on receipt)

Answer 46

MBR

Question 47

MBR is a default rule – offeror can require that acceptance is only effective on receipt

Answer 47

MBR

Question 48

If the offeree mails a rejection followed by mailing an acceptance, there is a race. Whichever arrives first is effective.

Answer 48

MBR

Question 49

If the offeree mails an acceptance followed by mailing a rejection, there is no race. The offeree accepted the offer by placing the acceptance in the mailbox *However, if the rejection arrives first and the offeror detrimentally relies on that rejection, the offeror can argue that the offeree is estopped from claiming that the offeree accepted the offer by placing the acceptance in the mailbox

Answer 49

MBR

Question 50

If the offeree mails an acceptance to the wrong address, the mailbox rule is suspended * If the incorrectly addressed acceptance arrives at the offeror’s home/business within the time that a properly addressed acceptance would normally have arrived, the mailbox rule applies and the acceptance was effective on dispatch. * If the incorrectly addressed acceptance arrives at the offeror’s home/business later than a properly addressed acceptance would normally have arrived, the acceptance is effective on receipt if the offeree still had the power of acceptance at that later date

Answer 50

MBR

Question 51

Where an acceptance is seasonably dispatched but the offeree uses a means of transportation not invited by the offer or fails to exercise reasonable diligence to insure safe transmission, it is treated as operative upon dispatch if received within the time in which a properly dispatched acceptance would normally have arrived

Answer 51

RS 67

Question 52

If an act is requested by the offeror as consideration for a unilateral K, the act need only be given with the intent of accepting the offer

Answer 52

RS 55/Klockner

Question 53

You can accept a bilateral K offer by performing so long as a reasonable person in the offeror’s shoes perceives it as an acceptance

Answer 53

Simmons (Diamond Jim)

Question 54

The offer of a prize or reward for doing a specified act, like catching a criminal, is an offer for a unilateral K. For the offer to be accepted and the K to become binding, the desired act must be performed with knowledge of the offer

Answer 54

Simmons

Question 55

So long as the outstanding offer was known to the offeree, a person may accept an offer for a unilateral K by rendering performance, even if he does so primarily for reasons unrelated to the offer

Answer 55

Simmons

Question 56

Baseline rule: Where there is an offer for a unilateral K, no notification necessary

Answer 56

RS 54/Bishop

Question 57

Exceptions to baseline rule: 1. If offeror requires notification, can require notification 2. Notification of accepting an offer for a unilateral K required when act of such a kind that the knowledge is not going to come quickly to the offeror

Answer 57

Bishop

Question 58

Ways to satisfy exceptions:

Answer 58

1. Reasonable diligence to notify 2. Offeror learns of performance in reasonable time 3. Offer indicates notification not required

Question 59

Schools of Thought – impact on when K is formed:

Answer 59

RS 54 Objective Standard: If you do the act, you’ve accepted, but if duty to notify, and fails to notify, offeror does not need to perform Other courts: K is not formed until act performed and notice given if duty to notify

Question 60

Silence is not an acceptance

Answer 60

Vogt

Question 61

A reasonable person in the offeror’s shoes would not see silence as an acceptance

Answer 61

Vogt

Question 62

Acceptance by Silence a) 1. Where an offeree takes the benefit of offered services 2. W/ reasonable opportunity to reject them 3. And reason to know that they were offered with the expectation of compensation b) 1. Where the offeror has stated or given the offeree reason to understand that assent may be manifested by silence or inaction 2. And the offeree, in remaining silent and inactive intends to accept the offer c) Where because of previous dealings or otherwise, it is reasonable that the offeree should notify the offeror if he does not intend to accept

Answer 62

RS 69: Acceptance by Silence

Question 63

Even if did not have standing offer, keeping item/silence for unreasonable amount of time might be found as acceptance

Answer 63

Hobbs

Question 64

An offeree who does any act inconsistent with the offeror’s ownership of offered property is bound in accordance with the offered terms unless they are manifestly unreasonable. But if the act is wrongful as against the offeror it is an acceptance only if ratified by him

Answer 64

RS 69(2)

Question 65

Contract implied in fact way for silence to be acceptance: Where services are rendered by one person for another which are knowingly and voluntarily accepted, the law presumes that such services are given and received in expectation of being paid for, and will imply a promise to pay what they are reasonably worth

Answer 65

RS 69/Dobos