Mutual Assent - Acceptance

Question 1

Acceptance Requirements

Answer 1

(CAVE)

Communicated to the offeree

Agree/assent to all the terms

Voluntary assent

Effective on dispatch (Mailbox Rule)

Question 2

Mirror Image Rule

Answer 2

1. Applies to consumer contracts
2. Acceptance must be a mirror image of the offer
3. Can’t (a) add to, can’t (b) subtract, can’t (c) can’t vary from the offer

Question 3

Silence as acceptance

Answer 3

• General Rule: Silence is not acceptance - no duty to say no

Question 4

Does the battle of the forms rule apply to offer?

Answer 4

No, Battle of the forms rule applies to acceptance, NOT offer

Question 5

Battle of the Forms Elements

Answer 5

1. Merchants
2. Accepts but changes terms
3. expressly conditional DEMANDS
   OR
4. Requests consideration of changed terms (2-part rule)
   – Additional Terms Rule
   – Different Terms Rule

Question 6

Additional Terms Rule

Answer 6

Additional terms become part of the contract if:

1. the original offer did not prohibit additional terms
2. the additional terms do not materially alter the contract [surprise, hardship factors]
3. the offeror does not object to the additional terms within a reasonable time

Question 7

Surprise Test

Answer 7

Not common, not usual, not normal

Question 8

Hardship Test

Answer 8

significant financial burden

Question 9

Different Terms Rule /Knockout Rule

Answer 9

1. deletes the different terms proposed by the parties
2. replaced by “gap-filler”

Question 10

Last Shot Rule

Answer 10

Courts prefer the Battle of the Forms Rule; the Last Shot Rule is disfavored
a. Mainly appears as answer choice to multiple choice question AND has always been wrong bc law disfavors

Question 11

Merchant Definition

Answer 11

1. dealer in goods of a specific type
2. dealer holds herself out to the public in having knowledge, skill, experience, in the type of good

Question 12

Good Definition

Answer 12

An item of personable property that is movable