Contracts I – Professor Goodrich Summer 2006 19 of 41 (4) If the auctioneer knowingly receives a bid on the seller’s behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faith bid prior to the completion of the sale. This subsection shall not apply to any bid at a forced sale. Equitable Life Assurance Society of the Unites States v. First Natonal Bank. Mortgagers told the sheriff, the auctioneer, to stop the auction after the bidding already started. The mortgagers have the right to stop the auction with reserve but not an auction without reserve. In an auction without reserve, there are two contracts. 1) collateral contract - the ad for an auction w/o reserve; 2) the main contract – the offer of the bidder and the acceptance of the auctioneer w/ the bang of the gavel. By making the highest bid, the bidder accepts the collateral contract. Sharp bids are illegal. When you are the seller and you have an agent in the audience to bid for you. (C) Acceptance: Exercise of Power of Acceptance Once there is acceptance, there is a contract made binding by the acceptance. 1. must be on the terms of the offer. Restatement §58. Necessity of Acceptance Complying With Terms of offer. An acceptance must comply with the requirements of the offer as to the promise to be made or the performance to be rendered. 2. manifestation of acceptance a. unilateral contract – performance b. bilateral contract – acceptance by mode of communication of a promise that mirrors the offer. Silence can be considered acceptance when it is reasonable. Restatement §35. The Offeree’s Power of Acceptance. (1) An offer gives to the offeree a continuing power to complete the manifestation of mutual assent by acceptance of the offer (2) A contract cannot be created by acceptance of an offer after the power of acceptance has been terminated in one of the ways listed in §36. Restatement §50. Acceptance of Offer Defined; Acceptance by Performance; Acceptance by Promise.
Contracts I – Professor Goodrich Summer 2006 20 of 41 (1) Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited by the offer. (2) Acceptance by performance requires that at least part of what the offer requests to be performed or tendered and includes acceptance by a performance which operates a return promise. (3) Acceptance by a promise requires that the offeree complete every act essential to the making of the promise. (1) Acceptance by Promise Restatement §56. Acceptance by Promise; Necessity of Notification to Offeror Excepted as stated in §69 or where the offer manifests a contrary intention, it is essential to an acceptance by promise either that the offeree exercise reasonable diligence to notify the offeror of acceptance of that the offeror receive the acceptance seasonably.
You've reached the end of your free preview.
Want to read all 41 pages?
- Spring '08
- The Land, Professor Goodrich Summer, www.swapnotes.com Contracts