Chapter 2 Acceptance Flashcards
What is an acceptance to an offer?
How can you accept an offer?
What does not constitute as an offer?
An acceptance is a final and unconditional assent to all of the terms in the offer.
An acceptance can be made orally or in writing (expressed performance)
An acceptance can also be made through conduct (implied performance)
If you counter offer, you are rejecting the initial offer OR a conditional acceptance
What is the general rule for communication of acceptance?
The general rule for acceptance states that for acceptance to be effective, it must be communicated to the offeror.
In writing, the offer must be received physically. Oral acceptance must be heard by the offeror.
How many exceptions are there to acceptance of an offer?
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There are four exceptions to acceptance of an offer. They are:
1) Waiver of communication
2) Silence
3) Postal Acceptance Rule
4) Instantaneous Communications
Describe the concept behind how waiver of communication is an exception to the general rule of acceptance.
If the facts of the case shows that the offeror has waived the need for communication of acceptance. Usually seen in cases where offer is made to the world.
Describe how the concept of silence is an exception to the general rule of acceptance?
Is there an exception to this concept?
If the offeror imposes silence to be construed as acceptance and the offeree consent to it. Offeree can use silence to communicate acceptance to the offeror.
Exception: If offeree did not consent to for silence to be used as a way to indicate acceptance to offeror. Silence cannot be enforceable.
Describe the concept of the postal acceptance rule and how it is an exception to the general rule of acceptance.
When it is clear that both parties agree that acceptance should be sent by post, acceptance on the part of the offeree can be communicated through post to the offeror.
For postal acceptance rule, acceptance by offeree is communicated as soon as the letter is posted out REGARDLESS of when and if it reaches the offeror.
Describe the concepts of instantaneous communication.
Explain each concept in detail.
For instantaneous communication, there are generally three concepts
Instantaneous proper communication such as telephone calls. The general rule applies, acceptance is communicated when heard by offeror
Instantaneous communication, but not instantaneous transmission such as email. The general rule applies here as well. Acceptance communicated when received by offeror.
How does the Electronics Transaction Act affect the general rule of acceptance?
If there is a designated email address, postal rule applies here and acceptance communicated to offeror is based on time the email was sent out.
If there is no designated email address, the general rule will apply. Acceptance is communicated to the offeror when he retrieves it and becomes aware that the email has been sent out.
What is the general rule for terminating offer and acceptance?
Name the case study and the relevant details
General rule states that an offer can be withdrawn at anytime before acceptance. However, revocation of an offer is only effective if it reaches the offeree.
CASE STUDY: Byrne V Van Thienhoven. Offeror mailed an offer to sell tin plates. Following which, offeror also mailed a letter of revocation to terminate the offer. However, offeree telegraphed his communication of acceptance first. Court held that the telegraph reach first and that the offer was accepted before revocation could be communicated.
What are the ways that one can terminate an offer and acceptance?
There are 7 ways and they are :
1) Reliable third party
2) Fresh offer (Generally a fresh offer would not supersede the original offer unless stated explicitly)
3) When offer is opened for a fixed period (Even if expressly stated so, offeror can withdraw offer anytime)
4) Rejection & Counter Offer
5) Lapse of time
6) Failure of condition. (If offer is conditional such as those in a unilateral contract and offeree has failed to meet those condition, the offer is not accepted)
7) Death (only hold truee if offeree had notice of offeror’s death)
