contractschap3

contractschap3 - Acceptance Defined: The manifestation of...

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Unformatted text preview: Acceptance Defined: The manifestation of assent in the manner requested or authorized by the offeror. Requires the offeree to do something affirmative, either by word or actions. Varying the terms of the offer Varying the terms of the offer; any change of terms of the offer or any conditioning of the acceptance on any other event will be a counteroffer. See page 5253 Mirror image rule: the acceptance must parrot the offer. Silence as acceptance Silence is generally not considered 2 Exceptions: 1. Offer was solicited by offeree. 2. The contract was implied infact. acceptance even if the offeror says that it will. See ex. Page 54 Who may accept Only offeree can accept The offeror need not specifically identify an individual as the offeree. It may refer to group or class of people who are capable of accepting the offer. See p. 54. Exceptions to rule that only offeree may accept: 1. Option; agrees, for consideration, to hold offer open, for option holder or transferee, for a specific Method of acceptance Acceptance of Bilateral: Whenever offeree gives promise requested bilateral contract comes into existence. Also can be accepted impliedly by doing the act promised. See ex. Page 56 Mailbox rule: Acceptance is effective when it is dropped in the mailbox.(must be properly dispatched and authorized). See ex.. Page 57 exception: option contracts Method of Acceptance Rejection of bilateral: Rejection by offeree terminates his/her ability to accept. See ex. Page 58 Rejection is only effective when actually received. Rejection and mailbox rule: See ex. Page 58 Can only be accepted by offeree actually performing the act requested. See ex. Page Acceptance of unilateral contracts; LET US LOOK AT THE FOLLOWING MAILBOXRULE.DOC ACCEPTANCE CONT'D Usually there is no duty on the offeree to notify the offeror that the act has been preformed except: 1. If the offeror has requested such notification. 2. If the offeror would have no other way of knowing. See ex. Page 59 3. If it is a reverse unilateral contract (the performer makes the offer rather than the promisor.) See ex. Page 59 Termination of ability to accept A terminated offer can not be revived unless both parties agree. Offeree can reject an proposal. Offeror can revoke an offer any time prior to acceptance. Revocation of bilateral: 3 times when offeror can not revoke option contract offeee has detrimentally relied on offer (ex. Page 60) auction without reserve. Revocation for unilateral contracts Offeror can revoke any time prior to acceptance Termination by operation of law: 1. Lapse of time; 2. Death or destruction of subject matter; 3. Death or insanity of offeror or offeree; 4.Supervening illegality. unless offeree has taken a substantial step or beginning in the completion of the contract. See ex. Page 61 ...
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