Acceptance & Termination

Question 1

Acceptance

Answer 1

A manifestation of assent to the terms of an offer made by the offeree and a manner invited or required by the offer.

Rest. 2nd, 50

Question 2

Was D’s ad offering a reward to use the carbolic smoke ball with an unsuccessful result of becoming sick a valid contract entitling P to €100 when she got sick?

Answer 2

Yes. most acceptances are not valid unless notice of acceptance is communicated. acceptance of offers containing ads should be treated differently as it is unlikely the advertisers are expected to notice beyond the condition being fulfilled.

• Reasonable persons thinks performance (testing the smoke ball and getting sick) and acceptance of the offer (unilateral contract) then it is binding when performance happens
• This was an extravagent promise= imposing to sell something that does not work

Carroll v. Carbolic Smoke Ball Co. (1892)

Question 3

Methods of Termination of the Power of Acceptance

Answer 3

Destroys the offeree’s power of acceptance. Parties can still contract, but a new offer has to be made for termination events:

1. Revocation of an offer by the offer or;
   An offer is power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract
   Indirect Communication of Revocation: an oferee’s power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract
2. Rejection of an offer by the offeree;
   (1) an offeree’s power of acceptance is terminated by his rejection of the offer, unlesss the offeror has manifested a contrary intention
   (2) a manifestation of intention not to accept an offer is a rejection unless the ofereee manifests an intention to take it under further advisement
3. The lapse or expiration of the offer in accordance with its terms or as a default in a reasonable time or;
   (1) an offer is power of acceptance is terminated at the time specified in the offer or if no time is specified at the end of a reasonable time
   (2) what is a reasonable time as a question of fact, depending on all the circumstances existing when the offer attempted acceptance are made
4. The death or incapacity of the offeror or offeree

Rest. 2nd 36

Question 4

Option Contract

Answer 4

Makes an offer irrevocable for a period of time when the offeree is unbound, but the offeror lacks her power to revoke (ex: for purchase of a home, buyer is assured that the seller won’t sell to another while the buyer looks for financing.)

Question 5

Does a week from D signing the instrument to P packing & unloading the materials to reroof D’s home a reasonable timeframe to accept an offer?

Answer 5

Yes. P accepted the contract by starting the work (loading trucks & materials, transporting them to the residence) -> performance had begun = acceptance of the offer.
- Since no timeframe was specified for acceptance, a reasonable time is all that’s necessary

Ever-Tite Roofing Corp. v. Green (1955)

Question 6

Can P’s offer for D’s property be revoked even without any express revocation from D until after the deadline?

Answer 6

Yes. D’s decision to sell his property to someone else happened before P formally accepted D‘s offer. It doesn’t matter that D didn’t communicate his changed state of mind through an expressed or actual statement, as change could be inferred through D’s conduct.

Dickson v. Dodds (1876)

Question 7

The Offeree’s Power of Acceptance 35

Answer 7

(1) an offer gives the offer a continuing power to complete the manifestation of mutual assent by acceptance of the offer

(2) a contract cannot be created by acceptance of an offer after the power of acceptance has been terminated and one was listed in 36

Question 8

Rules that govern how an offer is accepted

Answer 8

1. In the form of a promise to perform (bilateral: promise for promise) or in the performance itself (unilateral: one promise involved)
2. May prescribe the time, place, or manner, but if not can be accepted in any reasonable way (60)
3. An offer may require acceptance be in the form of particular words or acts; but if not it can be accepted by any medium reasonable under the circumstances
   UCC 2-206
   (1) inviting acceptance in any reasonable manner unless “otherwise unambiguously indicated by the language or circumstances”
   (2) where the beginning of her requested performance is a reasonable mode of acceptance and offer who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance

Acceptance by Performance; Necessity of Notification to Offeror 54
(1) we’re an offer invites and offering to accept by rendering a performance, No notification is necessary to make such an acceptance effective unless the offer request a notification.
(2) if an offer accepts rendering a performance reason to know that the offer has no adequate means of learning at the performance with reasonable prompt and certainty. The contract of the offeror is discharged unless:
A) offeree exercises reasonable diligence to notify the offer of acceptance
B) the offeror learns of the performance within a reasonable time
C) the offer indicate that notification of acceptance is not required

4. Offer may not allow silence or action to be treated acceptance; manifestation of ascent requires a voluntary act exceptions listed in 69
5. If there’s no requirement to notify acceptance, offeree must provide notice unless offer receive seasonable notification.

Acceptance by Promise; Necessity of Notification to Offeror 56
Accepted stated in 69 over where the offer manifest a contrary intention, it is essential to an acceptance by promise either that the offer exercise reasonable diligence to notify the offer of acceptance or that the offer receives the acceptance seasonably