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LSB outline pgs. 143-179 - A CCEPTANCE The Objective...

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ACCEPTANCE The Objective Standard (Pg. 143) Acceptances are evaluated by the same Objective Intent Standard as for Offers Who and what is reasonable is an issue for determining the lawfulness of an alleged offer or acceptance A “reasonable person” comes in one of two definitions: Descriptive: what parties knew of should have known at the time Normative: to fill in the gaps, one may proceed from a personal (individual reasonable person) standard to a “communal standard” (a more recent alternative definition of the reasonable person for purposes of contract law) The UCC – Sales Contract Formation “A contract for the sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract” Silence as Acceptance (pg. 144) The general rule: SILENCE IS NOT ACCEPTANCE Generally, science is not acceptance, nor can the offeror impose a duty upon the offeree to speak Concept is found in American law and International law CISG Article 1: “a statement made by or other conduct of the offeree indicating assent to an offer is an acceptance. Silence of inactivity does not in itself amount to acceptance” The Exceptions: Where Silence Can Be Acceptance 3 situations where silence can be acceptance: 1. Similar prior course of dealings/industry custom a. When there has been such a pattern of dealings or an industry custom, then a party who wishes to change the customary practice must not
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remain silent, but, in order to reject the offer (and not be bound by silence as acceptance), must affirmatively present his rejection to the other party 2. Offeree accepted benefits a. A relatively minor effort may be called for on part of the offeree, there was a recurring pattern of benefits, and/or delay through silence would cause the subject matter to become unmarketable (or other damages) 3. Contract between parties that provides for a future “silence as acceptance” arrangement When Is Acceptance Effective? The general principle: Acceptance can turn the offer into a contract Unilateral contract : when performance/forbearance is completed Bilateral contract : when offeree gives to the offeror the promise that the offeror requested from the offeree The Mail Box Rule (Deposit Acceptance Rule) – an acceptance using the same method of transmission as the offer is effective when the acceptance is sent (when the offeree places it in the mailbox or otherwise relinquishes control over it) Freedom-of-Contract Verses Standardized Forms (pg 146) American law gives freedom to the parties of a contract to make their own little contract laws – to change or avoid the effects of various contract law principles Standardized Forms Industrialization, mass marketing, and the rise of large corporations have led to the prevalence of contracting through standardized forms Three advantages:
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1. Standardized forms reduce transaction costs by relieving parties of the burden of individually negotiating and drafting contract provisions that
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