Acceptance

Question 1

What happens when a seller ships non-conforming goods in response to a buyer’s offer?

Answer 1

This is considered acceptance and material breach (under the perfect tender rule). The buyer can accept or reject the goods and sue for breach.

However, if the seller includes a notice of accomodation, this is considered rejection and counteroffer. The buyer can either accept or reject the goods, but does not have grounds to sue for breach.

Question 2

How can a seller accept an buyer’s offer to purchase goods?

Answer 2

A promise to ship goods.

The shipment of conforming goods.

The shipment of non-conforming goods (though this also constitutes immediate breach)

Question 3

What are the ways to accept a unilateral contract?

What are the ways to accept a bilateral contract?

Answer 3

There is only one way to accept a unilateral contract–by completing performance.

Unless the contract states otherwise, a bilateral contract can be accepted through a return promise or by beginning performance. Beginning performance is effectively a promise for complete performance.

In a bilateral contract, if an offer is accepted through beginning performance, there is an enforceable contract. However, the offeror does not have an obligation to perform until they are notified of the offeree’s acceptance.