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Question 1

What are the two viewpoints about who has the burden of the risk when it comes to mistake in transmission?

Answer 1

• majority: offeror

- minority: no contract, because not liable for someone else’s negligence

Question 2

If a telegram company writes the wrong numbers on an offer, who is bound by those numbers?

Answer 2

The offeror, but if the offeree knows they are obviously wrong/should have known, he can’t snap them up

Question 3

What are the three types of vacillating offerees?

Answer 3

• acceptance followed by rejection
• acceptance overtaking rejection
• acceptance failing to overtake rejection

Question 4

If you accept an offer, then send an email rejecting it, what happens?

Answer 4

The contract was formed because acceptance is effective on dispatch and it happened before the email. Unless the other party detrimentally relied on the rejection, then there is no contract

Question 5

If you send a letter rejecting an offer, then email an acceptance, what happens?

Answer 5

Contract is formed because dispatch and receipt of acceptance happened before receipt of rejection, so it is not possible to detrimentally rely

Question 6

If you send a rejection of an offer by mail, then send an email accepting it two days later, but the letter is received first, what happens?

Answer 6

Mailbox rule does not apply and no contract is formed because acceptance was received after rejection which was effective on dispatch

Question 7

If an offer was made, a rejection sent, but before the rejection was received, an acceptance was dispatched, what happens?

Answer 7

Whatever is received first is valid.

• Acceptance: contract
• Rejection: no contract

Question 8

What happens in crossed acceptance and revocation situations?

Answer 8

• majority: if acceptance is dispatched before revocation is received: contract
• minority: revocation effective on dispatch, so contract formed and if acceptance dispatched first, but not if revocation is dispatched first

Question 9

If parties are in each other’s presence, when is acceptance effective?

Answer 9

When the offer hears it/should have heard it (majority: when spoken by offeree)

Question 10

When is an acceptance effective on the phone?

Answer 10

When spoken or heard, but if there is a break in connection, the understanding of the least blameworthy party prevails

Question 11

What are the three different approaches to receiving unsolicited goods?

Answer 11

• CL: if you keep it, that is an implied promise to pay

- modern & UCC: treated as gift

Question 12

What are the two different views about when an offer can be revoked?

Answer 12

• classic: any time before complete performance

- modern: any time before performance begins

Question 13

If an offeree comes prepared to perform and the offeror stops him, what has happened?

Answer 13

The offeree tendered performance by showing up, and that made the offer irrevocable

Question 14

What are the different ways you can terminate the power of acceptance?

Answer 14

• lapse of time
• late acceptance
• death/incapacity/destruction
• conditional acceptance
• operation of law
• revocation
• rejection
• repudiation
• withdrawal

Question 15

If language in the offer states when it ends, how does the time run?

Answer 15

From the date of receipt, if not obviously delayed in transmission

Question 16

If an offer is sent by mail, acceptance must be mailed by when to be timely?

Answer 16

Midnight of the date of receipt

Question 17

What are the two different views about late acceptance?

Answer 17

• classical view: offer can be accepted only by a communicated acceptance
• restatement: if offeror doesn’t object, then acceptance is valid