Objective Test and Basic Principles of Acceptance and Offer

Question 1

what is an offer?

Answer 1

manifestation of willingness to enter into a bargain, that would lead the other party to belI have a contract has been formed upon acceptance.

R.2nd § 24

Question 2

Web-Based Transactions

Answer 2

Printable and Storeable
1) Clickwrap terms: customer must signify assent by clicking on a box or button
-> (Feldman v. Google)
2) Browsewrap terms: website takes terms available to the customer through a link to affirm assent
-> affected by how reasonable clear and conspicuous to the attention of non drafting party (Ngyeen)
3) Sign-in or Hybrid terms: presented to a customer upon registering or signing to account (Uber)

Question 3

Morales v. Sun Contruct. Inc,

Answer 3

P signed n employment agreement, had an arbitration clause P didn’t know since he couldn’t speak English. Is the agreement enforceable? YES
“Outward manifestation of assent and offeror has to reasonably believe that there was assent to reasonably believe that there was assent Lack of Knowledge of contract language is in material to contract enforceability”

Question 4

Objective Test and Assent

Answer 4

What would a reasonable person think when entering a contract
-> outward manifestation of intent when determining the existence and terms of contact

Question 5

An Offer or Solicitation?

Answer 5

Where a proposal is disseminated so widely, it is less likely to be seen as an offer, but might qualify
• must be clear, definitely, and explicit and leaves nothing open for interpretation
-> sateriale

Question 6

Lapse

Answer 6

If an offered does not accept the offer before it lapse, the offeree’s unaction constitutes rejection
- No specific duration, it is deemed to remain open for a reasonable time
- Offeree communicates intent but does not after offer lapse, it may be reasonable to interpret as new offer

Question 7

Revocation

Answer 7

Offeror is free to revoke before acceptance
- direct revocation: offeree must have received notice of revocation from the offeror (Hendricks)
- indirect revocation: offeree must have reliably learned in some way that the offer is no longer open for acceptance (Dickinson)

Question 8

Inadvertent Manifestation

Answer 8

Objective test determines acceptance of an offer in the offeree’s manifestation of assent
-> offeree unaware, inadvertent act may signify that conduct is an acceptance

Anderson: employee handl

Question 9

Mirror Image Rule

Answer 9

An acceptance must not vary the terms of the offer, or then becomes a counteroffer
- Roth: the response must be absolute and unqualified

Question 10

Silence or Inaction as Acceptance

Answer 10

Pride / Gupta
An offeree does not have affirmative step to reject an offer, but is deemed to rejected by not accepting it
- RS §69: offeror does not have power to cause the silence as offeree to accept
EXCEPT: silence or inaction my operate as acceptance where parties have a relationship under which it is reasonable for teh offeree to notify the offeror of intent to accept

Question 11

Communication of Acceptance
Effective Date

Answer 11

Offeree’s intent to accept an offer is determined by the offeror’ a overt manifestation of intent to accept

Question 12

Courts Decide Whether an Offer Been Accepted

Answer 12

1) Acceptance must be communicated to the offeror and takes effect only when that communication is legally completed
2) Acceptance is in compliance with any instruction in offer relating to the manner and acceptance
3) Acceptance must not vary the terms of the contract proposed
4) Acceptance must occur while the offer is still in effect, before it revoke or lapse

Question 13

General Principle of Acceptance

Answer 13

Objective
- offeror controls acceptance
1) an offer may invite or require acceptance to be made by an affirmative answer in words OR by performing or refraining from performing a specified act, or empower the offeree to make a selection of acceptance
2) unless otherwise indicated by the language or the circumstances; an offer invites in any and by any medium reasonable in circumstance

Question 14

Interpretation of Intent of Communication to Determine Whether it is an Offer

Answer 14

No contextual evidence -> Judge
Contextual evident -> Jury
• (Fletcher) A contract is valid and bounding offer and an acceptance must be made in plain language
• (Babcock) A price quotation can be an offer as long as there is manifestation of willingness to enter into a bargain, that another person can understand has assent

Question 15

Nature and Qualities of an Offer

Answer 15

Manifestation of willingness to enter into bargain, so made as to justify another person. In understanding that his assent to that bargain is invited

Question 16

Mailbox Rule

Answer 16

Only applies to acceptance

Where mail is an expressly or impliedly authorized or reasonable medium of acceptance, a properly stamped and addressed acceptance takes effect wen deposited
- parties must be at a distance
- offer itself comes by mail
- mailbox does NOT apply when substantially instantaneous and communication two-way
-> Trinity Holmes

Question 17

what is revocation and the different types?

Answer 17

offeror can always revoke at any time before acceptance, and revocation must be communicated unless it is an option contract.
- direct revocation: The offeror communicates revocation directly to the offeree.
- indirect revocation: offeree learns through a third party/actions of the offeror inconsistent with entering into the proposed contract.