Acceptance

Question 1

What is needed to cement a deal and freeze an agreement’s terms (unless there is mutual modification)?

Answer 1

Acceptance.

Question 2

Once acceptance has occurred, can one party change the terms?

Answer 2

No, one party cannot unilaterally change the terms. This requires mutual modification.

Question 3

What are the elements of acceptance?

Answer 3

Communicated + Absolute and Unequivocal + Responsive.

Question 4

1. What must be done for acceptance to be communicated in an offer?
2. Must this be done directly?

Answer 4

1. The purported acceptance must be made known to the offeror.
2. No; this is satisfied if the offeree made reasonable effort to notify the offeror of his/her acceptance.

Question 5

When written acceptance has been communicated, when is there notice that the acceptance has been received?

Answer 5

When the notice comes into possession of the offeror, when the notice comes into possession of a person authorized by the offeror to receive it, or when the notice is deposited in a place authorized by the offeror.

Question 6

When judged using an objective standard, what must the outward expression of intent be to accept an offer?

Answer 6

Absolute and unequivocal.

Question 7

When accepting an offer, can the acceptance change it in any way?

Answer 7

No, the acceptance must look exactly like the offer (it must be mirror image).

Question 8

Per UCC 2-204, if one or more terms are left open in a contract for sale, does it fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy?

Answer 8

No. Even if there are missing terms, a contract has still form if the parties intended a contract and there is a reasonable, certain basis for awarding damages.

Question 9

Per UCC 2-204, what manner may a contract for the sale of goods be formed in?

Answer 9

Any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract. Just like common law, a contract can be formed by express agreement (oral or written) or conduct.

Question 10

Per UCC 2-204, is an agreement sufficient to constitute a contract for sale even though the moment of its making is undetermined?

Answer 10

Yes. A contract can be formed even if the correspondence does not disclose an exact point when the contract was formed.

Question 11

Who is the master of the offer?

Answer 11

The offeror.

Question 12

Per Restatement 30, how can an offer invite or require acceptance?

Answer 12

By an affirmative answer in words, or by performing or refraining from performing a specified act, or may empower the offeree to make a selection of terms in his acceptance. Unless otherwise indicated by the language or the circumstances, an offer invites acceptance in any manner and by any medium reasonable in the circumstances.

Question 13

In acceptance, explain the mode versus the medium.

Answer 13

Mode (Manner) is the way in which an offer can be accepted (promising to perform or actually performing).

Medium (Form) is used to communicate the acceptance.

Question 14

If an offer wants prompt or current shipment, what is a means of acceptance?

Answer 14

Shipment or a prompt promise to ship.

Question 15

What manner of acceptance is reasonable? Is there an exception?

Answer 15

Any reasonable manner. Exception: When the offeror prescribes a certain mode of acceptance.

Question 16

If non-conforming goods are shipped (when the offer looks for shipment), what two things have occurred? Are there any exceptions?

Answer 16

Acceptance and breach. Exception: No breach if seller seasonably notifies buyer it is only an accommodation.

Question 17

If starting performance as a mode of acceptance, when must the offeree notify performance began to the offeror?

Answer 17

In a reasonable time.

Question 18

What is the general rule of silence for acceptance?

Answer 18

Silence is not acceptance.

Question 19

What are the four exceptions for when silence can constitute acceptance?

Answer 19

1. Offeree takes benefit, does not object, and knows the offeror expects to be paid.
2. Offeror says acceptance can be done with silence and the offeree stays silent intending to accept.
3. Previous dealings between the parties exist and it’s reasonable for offeree to notify offeror if there’s no intention to accept.
4. Offeree acts inconsistent with offeror ownership.

Question 20

What is the Postal Reorganization Act? Are there exceptions?

Answer 20

It states mailing of unordered merchandise is illegal. Exceptions: Conspicuously marked free samples or merchandise from charitable organizations looking for contributions. Merchandise in all scenarios can be treated as a gift and applies to USPS only.

Question 21

When is the power to accept an award terminated? Is there an exception?

Answer 21

When one person (or multiple people acting together) accepts the offer by supplying the requested information, the power of acceptance is terminated for subsequent person(s).

Exception: When an offer reward for supplying information leading to arrest and conviction of a criminal can be accepted by multiple people acting independently.

Question 22

Between a private and public reward, which requires knowledge of the reward to accept the offer?

Answer 22

Private reward.

Question 23

Does a public reward (issued by public entity) require knowledge of the reward prior to acceptance?

Answer 23

No.

Question 24

If the offeror’s requested form of acceptance of the offer is the offeree’s promise to perform, what kind of contract is this?

Answer 24

Bilateral.

Question 25

If the offeror’s requested form of acceptance of the offer is the offeree’s act or forbearance to act, what kind of contract is this?

Answer 25

Unilateral.

Question 26

If the mode of contract is ambiguous, offeree’s choice, but starts to perform and is obligated to complete, what mode of contract is this?

Answer 26

Operates as bilateral and binds both offeree and offeror.