CONTRACTS PEPPET - FALL 2004-23pp

CONTRACTS PEPPET - FALL 2004-23pp - CONTRACTS OUTLINE...

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CONTRACTS OUTLINE OFFER ( Rsmt. §24 ) An offer is the manifestation of willingness to enter into a bargain so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. A. A valid offer states the terms on which the parties will mutually agree and requires no further assent on the part of the offeror to conclude the deal. ( Lonergan ) B. An invitation to make an offer is not an offer, e.g. advertising. ( Izadi ) ( Rsmt. §26 ) C. A counter-offer effectively rejects the original offer, and transfers power of acceptance to original offeror. ( Normile ) ( Rsmt. §39(2) ) D. An offeror may revoke his offer at any time prior to acceptance by the offeree ( Petterson ), but the revocation must be communicated to the offeree ( Rsmt. §42 ) or the offeror must take action showing revocation, of which the offeree is aware. ( Rsmt. §43 ) E. An option , which allows the offeree to accept within a specified time, requires valuable consideration, ( Normile ) or according to Rsmt. requires purported consideration or induces substantial action or forbearance which the offeror should reasonably have expected. ( Rsmt. §87 ) UCC A. “Firm Offer:” An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurances that it will be held open is not revocable for lack of consideration, during the time stated or if no time is stated for a reasonable time, but not to exceed three months. ( UCC §2-205 ) ACCEPTANCE ( Rsmt. §50(1) ) Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer. A. A bilateral contract offer is accepted when the offeree manifests assent to be bound e.g signature, provided the offeree has the capacity to understand the terms. ( Ray v. Eurice ) B. A unilateral contract offer is accepted when the offeree completes a substantial portion of the requested performance, ( Cook ) or according to Rsmt. when the offeree begins performance. ( Rsmt. §45 ) 1
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C. The offeror is the master of the offer and may request acceptance in any form he chooses, the standard is that acceptance should come in the same form as the offer, but this is not a hard rule. D. “Mailbox Rule:” Acceptance is valid when deposited in the mail, unless the offeror has stated in the offer that acceptance must be received to be valid. If you use the wrong medium courts may deny you the benefit of the mailbox rule. E. If an acceptance modifies the original offer in any way, it is a counter-offer. ( Normile ) F. “Acceptance by performance:” An offeree who proceeds under an offer or counteroffer can accept by performance. UCC A. Unless otherwise stated in the offer, acceptance may be in any form as long as it is reasonable under the circumstances. C ONSIDERATION ( Rsmt. §71 ) (1) To constitute consideration a performance or return promise must be bargained for.
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