PPT 14: Contracts: Agreement - Contract Acceptance

What happens if offeror specified a particular mode/method of acceptance, but offeree sent acceptance in a different manner?

1. offeree sends acceptance by mode/method that doesn't accomplish the same purpose as the method specified in the offer, offeror may treat acceptance as invalid 2. offeree sends acceptance by mode/method that accomplishes the same purpose as that specified, then acceptance is effective but ONLY at the time offeror receives the acceptance

What if offer does NOT specify a particular mode/method of communication of acceptance?

Any reasonable means of communication is ok under the circumstances

Distinguish the communication of acceptance needed for a bilateral contract versus for a unilateral contract.

For a bilateral contract, an oral or written communication of acceptance is necessary UNLESS the offer itself states communication of acceptance is not necessary or if offer can be accepted by silence. For a unilateral contract, oral or written communication of acceptance is usually NOT necessary because completion of the act signals acceptance.

What are the exceptions to a unilateral contract not needing written or oral communication?

If the offeror's offer demands notice of acceptance, or the offeror has no way of knowing that act has been performed.

When can silence be counted as acceptance?

Silence can be acceptance IF offeree had a duty to speak but failed. This duty arises IF the offeree: 1. received a valuable benefit from the offeror AND knew the offeror expected payment 2. prior dealings 3. offeree solicits an offer from offeror AND specifies terms that would be acceptable. Offeror communicates an offer than meets offeree's exact specifications

Under the UETA, if parties HAVE agreed in advance to conduct business electronically:

The mailbox rule applies and an offeree's email acceptance is valid when SENT as long as it is sent to the proper email address AND the offeror receives e-mail in a readable format

Define acceptance.

The voluntary act by offeree that shows assent to the terms of an offer

What are the elements required for valid acceptance of a contract?

To "accept" an offer, the offeree: must communicate unequivocal assent through words or conduct to offeror or offeror's agent.

True or false: Silence is NOT acceptance.

True, in most circumstances

Explain the meaning of unequivocal acceptance.

Unequivocal acceptance is the mirror image rule; the requirement that terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

What is the mailbox rule for acceptance?

When communicating via non-instantaneous communication, an offeree's acceptance is valid when sent, not received.

What is the rule for acceptance when using instantaneous communications?

offeree's acceptance is valid when received

If parties HAVE NOT agreed in advance to conduct business electronically, an offeree's email acceptance is valid when ___________________.

the offeror RECEIVES email in a readable format