Contracts: Acceptance
Under the mailbox rule, what is meant by 'an authorized manner'?
'An authorized manner' is one that is expressly stated in the offer, postage prepaid and properly addressed.If a manner is not specified it is then determined by a reasonable means as one that is as speedy and legally dependable, postage prepaid, and properly addressed.
How may a bilateral offer be accepted?
A bilateral offer may only be accepted by a promise, not by an act. The promise may be express or implied.
Does an option contract expire on revocation by the offeree?
A revocation will not terminate an option contract unless the offeror relies on the termination and changes position.
How may a unilateral offer be accepted?
A unilateral offer may only be accepted by performance of the act requested in the offer.
Define 'acceptance' under the common law.
Acceptance is the unequivocable assent to the terms and conditions of the offer communicated to the offeror by the identified offeree in an authorized manner.
What is an ambiguous offer and how may it be accepted?
An ambiguous offer is one that could be reasonably interpreted to require acceptance by a promise or an act.Restatement 1: An ambiguous offer is one that must be accepted by a promise.Restatement 2: An ambiguous offer must be accepted by either a promise or an act with beginning of performance operating as a promise to complete performance.
What does 'communication in an authorized manner' mean?
If the manner of acceptance is not expressly prescribed, then it is determined by a reasonable means which is interpreted by the following rule: the method must be as speedy and legally dependable, postage prepaid, and properly addressed.
What is meant by 'unequivocable assent'?
Mirror Image Rule: any deviation in acceptance in an attempt to add to or to qualify the offer is a rejection.Statements of clarification are not rejections.Statements of implied terms are not rejections.
Under the common law can an offeree accept a bilateral offer by performance?
No. The offeree may only accept such an offer with a promise to perform. At times such an offer may be accepted by performance if the offeree is physically present and begins the requested performance of the promise, and if such performance can be interpreted as an implied acceptance of the offer.
Does a writing or a promise to keep an offer open under the common law make the offer irrevocable?
No. There must be consideration to keep an offer open.
Who has the power to accept?
Only the person to whom the offer is addressed. This is determined by an objective reasonable person standard.In a public offer anyone who meets the requirements as set forth may accept.
Who can accept an offer?
Only those intended by the offeror may accept. Anyone may qualify as an offeree for offers made to the general public, no matter what the subjective intent of the offeror may be.
State the mailbox rule and give its basic application.
The Mailbox Rule: Acceptance is effective upon dispatch, provided that it is done as expressly authorized in the offer. Revocation is effective on receipt.
Does the mailbox rule apply to option contracts?
The mailbox rule does not apply to any type of option contract including a merchant's firm offer under UCC 2-205.
When and how must an offeree accept an option contract?
The mailbox rule does not apply to option contracts. An option contract can only be accepted by receipt before the expiration of the option.
Can a failure to act become an implied in fact acceptance of an offer?
The offeree cannot be forced to speak or act under penalty of having inaction treated as an acceptance unless a duty to speak exists, or prior conduct of the party's silence creates a duty to speak, or a conversion of the goods in question occurs.
When is the offeree identified in a unilateral offer made to the public?
The offeree is identified in a unilateral public offer when the performance is completed and the offeree is notified of that performance.
How is a public unilateral offer terminated and must the offeree receive communication of the termination?
The offeree need not receive communication of the termination of such an offer. The offer itself is terminated by the use of the same media in which it was originally advertised or a media reasonably likely to produce the same result as the original.
Under the mailbox rule, what is the standard of communication?
Under the mailbox rule, communication is judged by the objective person standard.
What is a vacillating offeree?
Vacillating offeree:If acceptance is sent first, and rejection is sent second, the mailbox rule applies unless the offeror receives rejection first and relies on it.If rejection is sent first, and acceptance is sent afterwards, the mailbox rule does not apply, so whatever arrives first is binding.
Must the offeree know of a unilateral offer in order to accept it?
Yes. The offeree must know of the offer and the offer must have motivated his acts. There is a disagreement as to the motivation of the offeree; some jurisdictions do not care what motivated the offeree, they just inquire into his knowledge of the offer.