Formation of Contracts - Acceptance Flashcards
What is an acceptance ?
Objective manifestation by the offeree to be bound by the terms of the offer
- Must be communicated to the offeror
Acceptance of Bilateral K
Exchange of promises the make both enforceable
- Can be accepted by a retrun promise or by starting performance
- Starting to perf. = promise to complete perf.
Acceptance of Unilateral K
Promise to do somthing by one party in retrun for an act of the other party
- Acceptance by complete perf.
- Starting perf. is not enough, but it will make the offer irrevocable for reas. pd. of time to complete perf.
- Offeree must be aware of the offer before acting
- Offeree is NOT bound to complete perf.
Means of Acceptance
Offeree can accept in any reasonable manner/means
- Unless offeror specifies a particular manner
Acceptance by Silence
Not acceptance unless:
- offeree has reas. to believe offer could be accepted by silence or
- prev. dealings make it reas. to believe that offeree must notify offeror if he doesn’t intend to accept
Acceptance by Shipment of Goods
Buyer’s request that goods be shipped is inviting acceptance either by:
- seller’s promise to ship or
- by prompt shipment of goods
Shipment of nonconforming goods
Both acceptance and a Breach & seller is liab. for any damage caused to buyer as a result of the breach
- Unless seller seasonably notifies buyer that goods are an accommodation (counteroffer)
- Buyer may then accept (forming a K) or reject (no K formed) the nonconforming goods
Mailbox Rule
Acceptance that is mailed w/in allotted response time is effective when sent (not upon receipt)
- Unless offer provides otherwise
- Must be properly addressed & include correct postage
Mailbox Rule - Rejection then acceptance
MR doesn’t apply
- 1st one received by offeror will prevail
- Offeror doesn’t need to actually read the communication for it to prevail
Mailbox Rule - Acceptance then Rejection
Acceptance controls even if offeror receives rejection first
BUT if offeror detrimentally relies on rejection, then offeree is estopped from enforcing the K
Mailbox Rule - Revocation
Effective when received
Mailbox rule - Irrevocable Offer
MR doesn’t apply
- acceptance must be received by offeror b/f offer expires
Unilateral K - Notice
Offeree is not required to give notice after completing performance, unless:
- Offeror wouldn’t learn of perf. w/ reas. cert. & promptness OR
- Offer requires notice
Unilateral K - Effect if Notice is required but it’s not provided
Offeror’s duty is discharged, unless:
- Offeree exercises reas. dilligence to give notice,
- Offeror learns of perf. w/in reas. time, OR
- Offer indicates notice of acceptance is not required
Bilateral K - Notice
Offeree must give notice of acceptance
- Mailbox Rule - acceptance valid when sent (even if offeror hasn’t received it)
- UCC - If acceptance is made by beginning perf., notice is required within a reas. time
- Failure to give notice results in offers lapse