Business Law ch 9
Requirements of acceptance
1. An offer myst be accepted by the offeree, not by a third party. 2. The acceptance must be unequivocal. 3. In most situations, the acceptance must be communicated to the offeror.
Offer
A promise to perform some specified act in the future.
Preliminary negotiations
A request or invitation to negotiate is not an offer. It is only an expression of a willingness to discuss the possibility of entering into a contract.
Mirror image rule
A rule requiring that the terms of the offeree's acceptance exactly match the terms fo the offeror's offer.
Supervening illegality
A statute or court decision that makes an offer illegal automatically terminates the offer.
The mailbox rule
Acceptance takes effect, which completes formation fo the contract, at the time the communication is sent via the mode authorized by the offeror.
Expressed opinions
An expression of opinion is not an offer. An expressed opinion does not evidence an intention to enter into a binding agreement.
Destruction or death
An offer is automatically terminated if the specific subject matter of the offer is destroyed before the offer is accepted. An offeree's power of acceptance is also terminated when the offeror or offer dies or becomes legally incapacitated, unless the offer irrevocable.
Definiteness of terms
An offer must have reasonably definite terms-such as the names of the parties, quantity of items, how work will be performed, and payment details.
Lapse of time
An offer terminates automatically when the period of time specified in the offer has passed. If no time for acceptance is specified in the offer, the offer terminates at the end of a reasonable period of time.
Counter offer
An offeree's rejection of the original offer and simultaneous making of a new offer, giving the original offeror the power of acceptance.
Online acceptances
As with traditional paper contracts, acceptance of e-contracts must show that the offer voluntarily assented to the offer's terms.
The uniform electronic transactions act (UETA)
Does not create new rules for e-contracts, but supports the application of existing contract rules to electronic transactions.
Auctions
In a live auction, a seller "offers" goods for sale through an auctioneer, but this is not an offer to form a contract. Rather, it is an invitation, asking bidders to submit offers.
Advertisements
In general, advertisements, catalogues, and circular letters are considered invitations to negotiate. They are not considered evidence of an intention to enter into a contract.
Substitute method of acceptance
The acceptance may still be effective if the substituted method serves the same purpose as the authorized means.
Rejection of an offer
The offer may be rejected by the offer, which terminates the offer. The offer can reject the offer by words or by conduct. Rejection of an offer is effective only when it is actually received by the offeror or the offeror's agent.
Unequivocal acceptance
The offer must accept without adding or changing any terms.
Communication
The offer must be communicated to the offer, so that he or she will know the offer has been made.
Acceptance
The offeree's willing consent to eh terms of the offer.
Revocation of an offer
The withdrawal of an offer by an offeror. Unless an offer is irrevocable, the offeror usually can revoke the offer (even if he or she promises to keep the offer open), as long as the revocation is communicated to the offeree before she or he accepts. The offeror can revoke the offer by expressly repudiating it or by performing acts that are inconsistent with the existence of the offer and that are made known to the offer.
Online offers
To avoid legal disputes, offeror should make sure that online offers re obvious and easy to read.
Authorized means of acceptance
When an offeror specifies how acceptance should be made the contract is not formed unless the offer uses that mode of acceptance.
Agreement
When two or more parties consent to a contract's terms.
