Chapter 13 Flashcards
What is meant by a mode?
The mode of acceptance refers to the form of acceptance. In other words it refers to how you make an offer which helps dictate how you answer to an offer.
What is the rule for modes of acceptance under the Common Law?
The modes MUST MATCH! If the offer is made in a letter, you can only accept by letter, etc.
What is the rule for modes of acceptance under the UCC?
The modes DO NOT have to match. Any mode of acceptance is cool.
What is the type of acceptance that the common law must follow?
The Mirror Image Rule
What is the Mirror Image Rule?
All of the terms in the acceptance must match all of the terms in the offer.
What happens if someone accepts an offer but doesn’t use the mirror image rule under the Common Law?
The K is not enforceable
What is the rule for both parties being non-merchants?
The acceptance does not have to match the terms of the offer. Any new terms in the acceptance become proposals to the k. The parties have a k, and all the parts that match are in the k but the parts that do not match are proposals.
What is the rule for both parties being merchants?
The acceptance does not have to match the terms of the offer. Any new terms in the acceptance automatically become part of the k. The parties have a k, and all the parts that match are in the k, the parts that do not match are absorbed into the k and become part of the k, unless they fall under one of the 3 exceptions.
What are the 3 exceptions to the rule of merchants?
The offeror insists on a mirror image acceptance, the offeror objects to the new terms added by the offeree, and the new terms added by the offeree cause a material, economic change to the original offer.
What is a material, economic change to an original offer?
New terms sad by offeree do not automatically become part of the k because there is such a huge price difference
Important Concept 1:
Under the common law, the acceptance must exactly match every term of the offer. If it does not match, then it is a counter offer. If it does match, it is called a mirror-image acceptance.
Important Concept 2:
Under the UCC, it is significant who the parties are. If the parties are non-merchants , then the parties can still have a k even if there is not a mirror acceptance. The new terms become proposals to the k that must be worked out. If they are not worked out, the k ends up in the offeror’s terms.
Important Concept 3:
Under the UCC if both parties are merchants, then any new terms added in the acceptance automatically merge and become part of the k. This is true except for the three exceptions.
