Offer and Acceptance

Question 1

Feldman v. Google: Offer and Acceptance by Electronic Communications

Answer 1

classical rules of offer and acceptance apply to communications that are printable and storable.

Question 2

Acceptance = Not Timely

Answer 2

• No Contract

Question 3

mailbox rule

Answer 3

If mail explicitly authorized by offer or reasonable means of acceptance given facts, acceptance occurs when mailed.

Question 4

Izadi
ISSUE: Did advertisement objectively manifest offer allowing $3,000 trade-in allowance toward purchase of Ford Ranger which buyer accepted?

Answer 4

Yes, jury could find so as to reasonable person

Case represents exception to general presumption that advertisements are not offers: If P Proves:
If ad is clear, definite, and unequivocal, leaving nothing open to negotiation = offer (contains clear description of terms: subject matter, date, price, words of limitation as to quantity).

Question 5

Barker v. Allied, 596 P.2d 870 (1979)

Answer 5

Under classical contract analysis, it appears that the buyer would be the offeror when the buyer takes the item to the check out counter and tenders payment.

court ruled that the seller was the offeror by displaying self serve items with a price and the buyer accepts the offer and shows intent to purchase when the buyer takes the item off the shelf

Question 6

Hypothetical Reward
Reward of $500 “to person or persons furnishing information resulting in apprehension and conviction of persons guilty of the murder of Maurice L. Bernstein.”

Answer 6

Police questioned Mother of woman thought to be with murder suspect and Mother told them where daughter might be

Can Mother claim reward?

No.
Her problems are twofold: (1) the facts indicate she did not know of reward when she gave the information and therefore was not responding to the offer, and (2) she was legally bound to tell officers the truth

Question 7

Restatement 63: Time When Acceptance Takes Effect

Answer 7

“Unless the offer provides otherwise,
(a) an acceptance made in a manner and by a medium invited by an offer is operative and completes the manifestation of mutual assent as soon as put out of the offeree’s possession, without regard to whether it ever reaches the offeror.” R. 63(a)

Question 8

Method of Acceptance

Answer 8

“If an offer prescribes the place, time or manner of acceptance its terms in this respect must be complied with in order to create a contract. It an offer merely suggests a permitted place, time or manner of acceptance, another method of acceptance is not precluded.” R. 60

Question 9

Attempted acceptance with modified terms

Answer 9

Attempted acceptance with modified terms = counter offer.

Question 10

counter-offer

Answer 10

“A counter-offer is an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer.” R. 39 (1). See also R. 59

Question 11

Offeree’s Power of Acceptance

Answer 11

“An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect.” R. 43

Question 12

Special case of revocation of offer in advertisement (R. 46)

Answer 12

Where an offer is made by advertisement in a newspaper or other general notification to the public or to a number of persons whose identity is unknown to the offeror, the offeree’s power of acceptance is terminated when a notice of termination is given publicity by advertisement or other general notification equal to that given to the offer and no better means of notification is reasonably available.

Question 13

Summary—Termination of Offer

Answer 13

Rejection (including counter-offer)
Revocation (which also requires notice)
Death of offeror (automatically revokes without notice)
Lapse of time (determined by objective / reasonableness standard unless option contract (common law) or firm offer (UCC)

Question 14

Harris v. Time, Inc., 191 Cal. App. 3d 449 (1987)

Answer 14

See-through window on envelope: “Just for opening this envelope before 2-15-1985” you get new calculator watch”

Appellate court held although it was an advertisement (mass mailing), it constituted an offer to enter into a unilateral contract—give a calculator watch in exchange for specific act—opening envelope

Question 15

Unilateral Offers / Option Contracts = New Law

Answer 15

In case of doubt, an offer is interpreted as inviting the offeree to accept either by promising to perform what the offer requests or by rendering the performance, as the offeree chooses.” R. 32
“Where an offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders or begins the invited performance or tenders a beginning of it.” R. 45

Question 16

Employment at will

Answer 16

terminable by either party at any time

Question 17

Cook (unilateral bonus contract)

ISSUE: Did employee at will accept employer’s March, 1991, unilateral offer of a bonus payable at end of year?

Answer 17

HOLDING: Yes, and offer could not be revoked given fact that employee had substantially performed

Court reasoned P had substantially performed before attempted revocation
R. 45:
Where offer invites offeree to accept by performance and does not invite promissory acceptance, an option contract is created when offeree begins invited performance
Offeror’s duty of performance … is conditional on completion