Offeree Defenses to Termination of an Offer

Question 1

What are the Defenses available to a termination by a offeror?

Answer 1

Option Contract, Merchant Firm Offer (UCC ONLY), Detrimental Reliance, Part Performance

Question 2

Detrimental Reliance Elements

Answer 2

Offeror could reasonably expect that the offeree would rely, and offeree does rely.

Will be held as an option contract for a reasonable length of time

Question 3

Option Contract Elements

Answer 3

Offeree gives Consideration for promise to keep contract open

Rejection of offer, or counteroffer will not kill an option contract, the contract still open for the allotted time. UNLESS offeror has relied on rejection

Question 4

Merchant Firm Offer

Answer 4

Offeror is a Merchant, Signed Writing, Gives Assurance that it will be held open.

Will be held open for 3 months. (may not exceed 3 months)

Question 5

Part Performance

Answer 5

FOR UNILATERAL CONTRACTS.

irrevocable once performance has begun for a reasonable time to complete performance. Offeree NOT BOUND TO COMPLETE PERFORMANCE . (NOTE: MUST BE MORE THAN MERE PREPARATION)