BUS311_chapter_04

The first requirement is simple only a person to whom

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: t outlaws sale of ivory (to protect endangered elephants), the offer terminates due to illegality. 4.3 Acceptance A cceptance of an offer is the clear manifestation of assent to the terms of the offer. For an acceptance to be valid, if must be (1) made by a person to whom the offer was made, (2) unequivocal, and (3) communicated to the offeror. The first requirement is simple: only a person to whom an offer was made may accept it. The following example will illustrate: Example 4.16. Professor Smith, an attorney, offers to draft a will for anyone in his Business Law class for $25. Bill Jones, who is not a student in the class, overhears the offer while passing by the lecture hall and promptly walks to accept the offer. Bill’s acceptance is not valid since the professor’s offer was made only to students in his class and could be accepted only by them. It also must be clear from the offeree’s words or actions that he intends to accept the offeror’s offer under the offeror’s terms. Under the common law’s mirror image rule, which is still used for situations involving subject matter other than sales of goods, an acceptance was deemed valid only if it mirrored the offer exactly. A deviation constituted a counteroffer, which revoked the original offer. For example, Peter offers to paint Harry’s house for $3,000, and Harry responds: “I accept. Use Benjamin Moore brand paint.” Since Peter’s offer said nothing about what type of paint he was willing to use, this is a counteroffer and they do not yet have a contract. The mirror image rule has been modified by Article 2 of the Uniform Commercial Code in transactions involving the sale of goods. Under UCC Section 2-207, acceptance is valid even if it contains terms different from the original offer unless it is conditioned on the offeree accepting the additional terms. The additional terms in the acceptance are simply ignored and the contract is formed under the terms of the offeror’s offer. rog80328_04_c04_062-0...
View Full Document

This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

Ask a homework question - tutors are online