Formation: Acceptance

Question 1

Definition: Acceptance

Answer 1

objective manifestation by the offeree to be bound by the terms of the offer

Question 2

Acceptance: Bilateral K

Answer 2

exchange of promises that render both enforceable

Question 3

Acceptance: Unilateral K

Answer 3

promise to do something by one party in return for an act of the other party

Question 4

True or False: Under a unilateral K, starting to perform is enough to be considered acceptance of the K.

Answer 4

False.

Question 5

True or False: Under a unilateral K, starting to perform will make an offer irrevocable for a reasonable period of time to complete performance.

Answer 5

True.

Question 6

True or False: An offeree need not be aware of an offer before acting.

Answer 6

False.

Question 7

Definition: Means of Acceptance

Answer 7

unless offeror specifies, offeree can accept in any reasonable manner/means

Question 8

When is Silence a Means of Acceptance?

Answer 8

When the offeree has reason to believe the offer could be accepted by silence or previous dealings make it reasonable to believe that the offeree must notify the offeror if he does not intend to accept.

Question 9

When is Shipment of Goods a Means of Acceptance?

Answer 9

A buyer’s request that goods be shipped is inviting acceptance either by seller’s promise to ship or by prompt shipment of goods.

Question 10

Are Nonconforming Goods a Means of Acceptance?

Answer 10

Yes, and a breach, unless the seller seasonably notifies the buyer that goods are an accommodation (counteroffer).

Question 11

True or False: A buyer may not reject nonconforming goods that are a reasonable and comparable accommodation made by the seller.

Answer 11

False.

Question 12

When Does the Mailbox Rule Apply?

Answer 12

Applies only to acceptance and almost exclusively to bilateral Ks.

Question 13

Mailbox Rule: Acceptance

Answer 13

effective when sent (not upon receipt), unless offer provides otherwise

Question 14

Mailbox Rule: Rejection Following Acceptance

Answer 14

Acceptance will control even if offeror receives rejection first

Question 15

True or False: If the offeror detrimentally relies on the rejection that he received prior to receiving the acceptance, the offeree may still enforce the K.

Answer 15

False.

Question 16

Mailbox Rule: Acceptance Following Rejection

Answer 16

The Mailbox Rule does not apply. The first one received (i.e., in possession of offeror for his agent for deposited in mailbox) will prevail; offeror need not actually read the received communication.

Question 17

Mailbox Rule: Revocation

Answer 17

Effective upon receipt

Question 18

Mailbox Rule: Options and Other Irrevocable Offers

Answer 18

The Mailbox Rule does not apply. Acceptance must be received by the offeror by a certain date for before the offer expires.

Question 19

Notice: Unilateral K

Answer 19

offeree not required to give notice after completing performance, save for two exceptions.

Question 20

Two Exceptions to Notice Requirement Under Unilateral Ks

Answer 20

1. Offeror wouldn’t learn of performance with reasonable certainty and promptness
2. Offer requires notice

Question 21

True or False: A offeror’s duty is not discharged simply because he did not receive notice that was required.

Answer 21

False.

Question 22

Three Exceptions to an Offeror’s Duties Being Discharged Based on the Absence of Required Notice

Answer 22

1. Offeree exercises reasonable diligence to give notice
2. Offeror learns of performance within reasonable time
3. Offer indicates notice of acceptance is not required

Question 23

Notice: Bilateral K

Answer 23

offeree must give notice of acceptance

Question 24

Notice Under a Bilateral K According to the UCC

Answer 24

If acceptance is made by beginning performance, notice is required within a reasonable time; failure to give notice results in offer’s lapse.