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Cisg article 1 a statement made by or other conduct

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CISG Article 1: “a statement made by or other conduct of the offeree indicating assent to an offer is anacceptance.Silence of inactivity does not in itself amount to acceptance”The Exceptions: Where Silence Can Be Acceptance3 situations where silence can be acceptance:1.Similar prior course of dealings/industry customa.When there has been such a pattern of dealings or an industry custom, then a partywho wishes to change the customary practice must not remain silent, but, in order toreject the offer (and not be bound by silence as acceptance), must affirmativelypresent his rejection to the other party2.Offeree accepted benefitsa.A relatively minor effort may be called for on part of the offeree, there was arecurring pattern of benefits, and/or delay through silence would cause the subjectmatter to become unmarketable (or other damages)3.Contract betweenparties that provides for a future “silence as acceptance” arrangementWhen Is Acceptance Effective?The general principle: Acceptance can turn the offer into a contractUnilateral contract: when performance/forbearance is completedBilateral contract: when offeree gives to the offeror the promise that the offerorrequested from the offereeThe Mail Box Rule(Deposit Acceptance Rule) – an acceptance using the same method of transmissionas the offer is effective when the acceptance is sent (when the offeree places it in the mailbox orotherwise 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 changeor avoid the effects of various contract law principlesStandardized FormsIndustrialization, mass marketing, and the rise of large corporations have led to the prevalence ofcontracting through standardized formsThree advantages:
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Chapter 13 / Exercise 02
Legal Environment
Beatty
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1.Standardized forms reduce transaction costs by relieving parties of the burden ofindividually negotiating and drafting contract provisions that regulate relatively routineexchanges2.Standardized forms reduce agency costs by limiting the contractual discretion ofsubordinates within a corporate hierarchy3.Standardized forms facilitate centralized control by harmonizing contracts throughout afirms national or international business activitiesProblems:Since the forms make negotiations unnecessary, the parties may never have reallyconsidered, and understood, the standardized termsBattle of the FormsIn the world of business, there are variations between forms – they are similar from business to business,but rarely are identicalLegal problems with standardized formsMirror Image Rule– principle that the offer and acceptance, in order to form a contract, must mirroreach other exactly – the terms must ALL be the sameRule creates 2 perverse incentives:oEncourages parties to read closely their forms and to individually negotiate terms thatdo not match (this erodes the cost savings associated with formcontracts)o

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Term
Spring
Professor
Carolan
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Legal Environment
The document you are viewing contains questions related to this textbook.
Chapter 13 / Exercise 02
Legal Environment
Beatty
Expert Verified

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