Acceptance

Question 1

Acceptance

Answer 1

is the manifestation of assent in the manner requested or authorized by the offeror

Question 2

For the acceptance to be valid, the acceptance must be _____.

Answer 2

both unequivocal and unqualified

Question 3

counteroffer

Answer 3

a response by an offeree that significantly changes the terms of the original offer in which the roles of the parties then are reversed

Question 4

mirror image rule

Answer 4

the acceptance must parrot exactly the terms of the offer to be valid

Question 5

Silence as Acceptance

Answer 5

silence is not an acceptance, even if the offeror says that silence will constitute acceptance

Question 6

silence may constitute an acceptance in 2 situations:

Answer 6

1. If the offer was solicited by the offeree; or

2. The contract is implied in fact

Question 7

Option Contract

Answer 7

a situation in which, for consideration, an offeror agrees to hold the offer open exclusively for the option holder, for a specified period of time

Question 8

undisclosed principal

Answer 8

an agent acts for and in the place of another, known as the principal, in order to enter into contracts with third persons on the principal’s behalf

Question 9

To accept a bilateral contact the offeree must _____.

Answer 9

make the promise requested

Question 10

The only way a unilateral contract can be accepted is by _____.

Answer 10

performing the act requested

Question 11

Mailbox rule (define)

Answer 11

the acceptance of an offer of a bilateral contract is effective when properly dispatch by an authorized means of communication

Question 12

Mailbox rule (2 key notes)

Answer 12

1. The moment the acceptance is dropped in the mailbox, the contract is formed
2. The mailbox rule requires that the letter be “properly dispatched” and that the means of the communication be “authorized”

Question 13

The exception to the mailbox rule

Answer 13

option contracts; acceptance of an option is only effective on receipt

Question 14

Rejection of a Bilateral Contract

Answer 14

• an offeree’s rejection terminates the offeree’s ability to accept, thus ending that particular offer
• rejection is effective only when actually received

Question 15

The law imposes no duty on the offeree to notify the offeror that the act has been performed; however there are 3 exceptions to this rule:

Answer 15

1. If the offeror has requested such notification as part of the offer
2. If the offeror would have no other way of knowing that the act has been performed
3. The offeree must notify the offeror in a reverse unilateral contract

Question 16

reverse unilateral contract

Answer 16

the performer makes the offer rather than the promiser

Question 17

A terminated offer cannot be revived unless _____.

Answer 17

BOTH parties agree to the revival

Question 18

To terminate an offer by an ACT of the parties, _____. (2 options)

Answer 18

either

1. the offeree must reject the proposal or
2. the offeror must revoke the offer

Question 19

4 situations in which the offeror may NOT revoke an offer prior to acceptance:

Answer 19

1. in the case of an option contract
2. if the offeree has detrimentally relied on the offer, even though he has not yet accepted
3. in an auction without reserve
4. Under the UCC a merchant offeror may not revoke a firm offer for a period of 90 days, even if such offer is not supported by consideration

Question 20

auction without reserve & auction with reserve

Answer 20

w/out - a situation in which the property owner agrees to auction her property and specifically accepts as the selling price whatever is the highest bid
with - the parties have the right to revoke at any time before the gavel finally comes down

Question 21

Revocation of Unilateral Contracts

Answer 21

only when the offeree completes the act is the offer considered accepted and a contract created; the offeror may revoke any time prior to the offeree giving her acceptance (however one must consider partial performance)

Question 22

Revocation of Bilateral Contracts

Answer 22

For bilateral contracts, the offeror may revoke any time prior to the offeree giving her promise, the acceptant

Question 23

Operation of Law

Answer 23

a legal term for the circumstance in which one event has a legal effect on a second, unconnected event

Question 24

There are 4 circumstances, or events, that terminate offers by operation of law:

Answer 24

1. Lapse of time – the offeree takes an unreasonable length of time to respond
2. The death or destruction of the subject matter
3. The death or insanity of the offeror or offeree
4. Supervening illegality

Question 25

Supervening illegality

Answer 25

the contracts was legal at the time of the offer, but prior to acceptance a statute or court decisions makes the subject matter illegal

Question 26

The effects of Termination of Offer (2 answers)

Answer 26

1. Once an offer has been terminated, either by act of the parties or by operation of law, it can no longer be accepted
2. Any attempt on the part of the offeree to accept after that point constitutes a new offer to the original offeror (the roles of the parties an then reversed)