Recap Review/Offer/Acceptance

Question 1

Betty was accepted to medical school and registered for classes. Aunt promises Betty $1,000 if Betty goes to the medical store. This constitutes a:

Answer 1

A gift. She was already accepted.

Question 2

Tommy agrees to sell a chickie dinosaur play set for 2,000, 1,000 in cash and the balance in installments over a two period year. Offer?

Answer 2

Yes. Both parties manifested an intent to conclude a binding agreement, the indefiniteness of the terms is fine.

Question 3

Lorna tries to text James, “I’ll sell you peacock feathers today if you give me $90.” Lorna’s Wi-Fi is weak, so it hasn’t gone through yet. Is it an offer?

Answer 3

Definite terms have been met but it has not been understood by the offeree. Not an offer.

Question 4

Text from previous goes through. James texts back “I could possibly buy it for $70.” Is this an offer?

Answer 4

Not an offer. It is unclear what the terms are.

Question 5

Lorna decides to put a message on her Facebook, “I’m selling peacock feathers for $90!”

Answer 5

No, but there is a manifestation to bargain, clear and definite terms, and intent to bargain. BUT it is not clear who they are selling to.

Question 6

Explain and apply the rules for accepting an offer AND evaluate whether an offer was accepted when presented with case facts.

Answer 6

We are in the last part of mutual accent (offer and ACCEPTANCE)

Question 7

James offered to get Rachel a Marta card for $10. Lorna overheard and said, “I accept!” handing him $10. Is this acceptance?

Answer 7

No. It wasn’t to Lorna so it can’t be acceptance.

Question 8

Nigel offered Rachel Spanish lessons for $90. Rachel said, “I accept. Here’s $50 dollars. Rachel agreed. Is this acceptance?

Answer 8

Yes.

Question 9

What is acceptance?

Answer 9

It is a manifestation of assent to the terms made by the offeree in a manner invited or required by the offer.

Question 10

What are the Acceptance elements?

Answer 10

1) Express commitment
2) unconditional
3) on the terms offered.

Question 11

Common acceptance issues

Answer 11

1) Content (mirror image rule)
2) Model/Manner of Acceptance
3) Notice (as soon as the offeree mails out their acceptance, they have a binding contract)
4) Standard Form Agreements

Question 12

Panhandle Eastern Pipe Line CO. v. Smith

Answer 12

Rule: The offeror must clearly and definitely express an exclusive mode of acceptance. The acceptance can be unreasonable but the mode of acceptance must be explicit.

An acceptance is still effective if the addition only asks for something that would be implied from the offer and is therefore immaterial.

Reasoning: Even a grumbling acceptance is still an acceptance.

Question 13

The offeror is the master of the offer

Answer 13

True.

Question 14

Offeror can demand an exclusive mode of acceptance must be clearly stated if not in any reasonable manner.

Answer 14

True. (common law)

Question 15

Mirror Image Rule

Answer 15

1) Acceptance = mirror image of the offer
2) small, unimportant change = counter offer
3) exception: implied; mere request; dissatisfied.

Question 16

Counteroffer rule

Answer 16

1) offer made by the offeree to the offeror
2) relating to the same matter as the original offer
3) Proposing a substitute bargain model
4) No Contract until it is accepted

Question 17

Russell v. Texas Co.

Answer 17

Rule: Did inaction show an acceptance of the offer?

Reasoning: Yes.

Question 18

Silence and acceptance

Answer 18

1) Default - silence is not a valid mode of acceptance
2) Exceptions
a. Parties agree
b. Past dealings
c. The offeree retains the benefits of the contract

Question 19

Bilateral

Answer 19

1) Promise for promise
2) Acceptance = return promise
3) Both parties are bound when a return promise is made.

Question 19

CIM Insurance v. Cascade Auto Glass, Inc. (CoA of NC; 2008)

Answer 19

Rule: A unilateral contract is formed when one party makes a promise and expressly or impliedly invites the other party to perform some act as a condition for making the promise binding on the promisor.

Performance is acceptance when it is disclosed in the contract by the offeror.

Reason:

Question 20

Unilateral

Answer 20

1) Promise for performance
2) acceptance = full performance
3) No party bound unless/until performance
4) Offer must specify acceptance only by performance
Example: a reward

Question 21

Rocksteady regularly rents out space for parties. It placed an ad on its website saying its party space is open every first Friday for $5,000 to the first person who books online. Lorna, excited about Nigel’s upcoming birthday party, sends the manager an email stating that she unequivocally wants to book the space for this Friday. Is there a contract?

Answer 21

No, it is not within the terms of the contract. The email is not the same as the online form.

Question 22

James has a property with lots of trees. During autumn, the yard looks awful with leaves everywhere. In the past, James has hired Rachel to rake the leaves. However, Rachel is often unreliable and never finishes the work. This year, James offers Rachel $300 to rake all the leaves off her yard but will only pay when the job is done. After a few hours, Rachel left. Would James be successful if he sued for breach of contract?

Answer 22

No. The contract is only formed if there is performance.