BLAW 243- PowerPoint 14

Communication of Acceptance 1. Bilateral Contract

- Oral or Written Communication of acceptance is necessary UNLESS Offer itself STATES communication of acceptance is not necessary OR if offer can be accepted by silence (prior dealings)

Communication of Acceptance 2. Unilateral Contract

- Oral or Written Communication of acceptance is usually NOT necessary because completion of ACT signals acceptance unless - offeror's demands notice of acceptance - offeror has no way of knowing that act has been performed

Elements Required for Valid Acceptance

1. Must COMMUNICATE unequivocal assent 2. Through words or conduct 3. To offeror or offeror's agent.

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

1. if the new method does not accomplish same purpose as the method specified in the offer, May be treated as INVALID. 2. If Method accomplishes the same purpose, acceptance is effective but only at time offeror receives the acceptance.

Circumstances when Silence can be Acceptance:

A. If offeree had a duty to speak (to accept or reject) but failed. This duty arises IF the offeree 1. Received a valuable benefit from offeror AND 2. KNEW offeror expected payment B. Prior Dealings C. Offeree offers something and offeror communicates that meets exact specifications of offeree.

On Oct. 1, Max offered to sell Jonas 25 guitar lessons for $400. Max did not specify the method by which Jonas should accept the offer. Jonas placed a written acceptance in the mail on Oct. 17. Max received the acceptance on Oct. 20. As of which date was the contract valid? A. Oct. 17 when Jonas SENT the acceptance; B. Oct. 20 when Max RECEIVED the acceptance?

A. Oct. 17 when Jonas SENT the acceptance

Tom offers to provide lawncare services to Giselle for $50 per mow from May through October. Giselle sends Tom an e-mail that states, "I accept. Please send a written contract." Has Giselle accepted the contract? A. Yes B. No

A. Yes

Mode and Timeliness of Acceptance

Acceptance in bilateral contracts must be timely.

Brown (buyer) presented Lagrange (seller) with a written offer to buy a house. Lagrange penciled in modifications to the offer- an increased purchase price and a date change, initialed the changes, signed the document, and sent the revised document to Brown. Brown initialed the date change, but not the price increase. Brown used the document to apply for a mortgage, agreed to closing, and accepted a deed from LaGrange. However, Brown did not sign the document. When Lagrange asked Brown to pay, Brown filed suit claiming she had not agreed to the increased price. Was Brown's conduct sufficient to constitute acceptance of LaGrange's counteroffer? A. No, because Brown only initialed the date change and did not sign the counteroffer; B. Yes, because Brown's conduct was sufficient to show agreement, and Lagrange's offer did not restrict the method of acceptance.

B. Yes, because Brown's conduct was sufficient to show agreement, and Lagrange's offer did not restrict the method of acceptance.

On Oct. 1, Max offered to sell Jonas 25 guitar lessons for $400. Max's offer stated Jonas must accept by written letter sent via FedEx 24-hour delivery. On Oct. 15, Jonas telephoned Max and left a phone message acceptance. To be safe, on Oct. 17 Jonas also sent a written acceptance letter via DHS 24-hour delivery, and Max received this written acceptance on Oct. 20. Assuming Max would only accept a written letter, as of which date was the contract valid? A. Oct. 15 when Jonas telephoned; or B. Oct. 17 when Jonas mailed the DHS letter; or C. Oct. 20 when Max RECEIVED the DHS letter; or D. Never, Jonas's phone call terminated Max's offer;

D. Never, Jonas's phone call terminated Max's offer

Unequivocal Acceptance means using

Mirror Image Rule

MTA Instantaneous Communications

Offeree's acceptance is VALID WHEN RECEIVED

The Mailbox Rule with MTA

Offeree's acceptance is VALID WHEN SENT - for non-instantaneous communications

Silence IS NOT Acceptance

True

Termination of Offer

Valid when RECEIVED by opposite party

Acceptance of a Contract

Voluntary act by offeree that shows assent to the terms of an offer.