Termination Flashcards
Restatement§ 36 Methods of Termination of the Power of Acceptance
(1) An offeree’s power of acceptance may be terminated by
(a) rejection or counter-offer by the offeree, or
(b) lapse of time, or
(c) revocation by the offeror, or
(d) death or incapacity of the offeror or offeree.
(2) In addition, an offeree’s power of acceptance is terminated by the non-occurrence of any condition of acceptance under the terms of the offer.
Restatement § 38 Rejection
(1) An offeree’s power of acceptance is terminated by his rejection of the offer, unless the offeror indicates otherwise.
(2) A manifestation not to accept an offer is a rejection unless the offeree takes it under further advisement.
Restatement § 38 Rejection The Probability of Reliance
A makes an offer to B and adds: “This offer will remain open for a week.” B rejects the offer the following day, but later in the week purports to accept it.
There is no contract unless the offer was itself a contract. B’s purported acceptance is itself a new offer.
Restatement § 46 Revocation of General Offer (Newspaper Ad, etc)
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.
Restatement § 46 Revocation of General Offer Available Means of Notice
A, a newspaper, publishes an offer of prizes to the persons who procure the largest number of subscriptions as evidenced by cash or checks received by a specified time. B completes and mails an entry blank giving his name and address, which is received by A. Thereafter, during the contest, A publishes a notice that personal checks will not be counted; B does not see the notice.
Unless the original offer provided otherwise, B is not bound by the later notice, since A could have given B personal notice.
Restatement § 46 Revocation of General Offer Available Means of Notice
The United States Government publishes an offer of reward for the arrest of a named fugitive. Seven months later the President publishes a proclamation revoking the offer, which is given the same publicity as the offer. Five months after the proclamation, A, who has been in Italy continuously and who learned indirectly of the offer but not of the revocation, arrests the fugitive in Italy.
There is no contract.
Restatement § 87 Option Contract
(1) An offer is binding as an option contract if it
(a) is in writing and signed by the offeror, has a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or
(b) is made irrevocable by statute.
(2) An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and does so is binding as an option contract to the extent necessary to avoid injustice.
Restatement § 87 Option Contract Reliance
A leases a farm to B and later gives B an “option” to buy the farm for $15,500 within five years. With A’s approval, B makes permanent improvements in the farm buildings, builds roads, drains and dams, and contours plow land, using his own labor and expending several thousand dollars. Toward the end of the five years, A purports to revoke the option, demanding a higher price. B then gives written notice of acceptance in accordance with the terms of the offer.
Specific performance by A may be decreed.
Restatement § 87 Option Contract Reliance
A offers to B a “blanket arrangement” to buy “poultry grown by you” at stated prices. As contemplated, B buys 7,000 baby chicks and begins raising them for sale to A as “broilers.” Thereafter A purports to revoke the offer.
B has the rights of an aggrieved seller under a contract for the sale of 7,000 “broilers.”
Restatement § 95 Requirements for Sealed Contract or Written Contract or Instrument Statute Absent
(1) In the absence of statute a promise is binding without consideration if
(a) it is in writing and sealed; and
(b) the document containing the promise is delivered; and
(c) the promisor and promisee are named in the document or so described as to be capable of identification when it is delivered.
Restatement § 95 Requirements for Sealed Contract or Written Contract or Instrument
(2) When a statute provides in effect that a written contract or instrument is binding without consideration or that lack of consideration is an affirmative defense to an action on a written contract or instrument, in order to be subject to the statute a promise must either
(a) be expressed in a document signed or otherwise assented to by the promisor and delivered; or
(b) be expressed in a writing or writings to which both promisor and promisee manifest assent.
