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Flashcards in Acceptance Deck (37):

Who may accept an offer to a single person?

Only the person to whom the offer was made.


Who may accept an offer to a class of people?

anyone who is a member of the class to whom the offer was made.


Can an offeree's power of acceptance be assigned?

Generally no.


When can offeree's power of acceptance be assigned?

when the offeree has paid consideration to keep the offer open; i.e. made an option, the right to accept is assignable.


An offer of a unilateral contract can only be accepted by . ..

complete performance.


What does beginning performance do to a unilateral contract?

it makes it an option contract which must be held open for a reasonable period of time.


Must an offeree to a unilateral contract complete their performance once it has begun?

No. It is only accepted when performance is complete.


What happens if a person completes performance of a unilateral contract, but never actually knew of the offer?

they are not entitled to the benefits of the contract. They have not accepted the offer, because they did not know of the offer. To accept an offer, one must know of the offer.


Must an offeree give the offeror of a unilateral contract notice of their intent to perform?

No, but they must inform the offeror when they have completed performance unless it would be obvious the performance was complete.


How can an offer to make a bilateral contract be accepted?

by either a promise to perform or beginning performance


Acceptance of an offer to make a bilateral contract must be ____________ to the offeror.



When is silence an acceptance?

only where the offeror knows by prior dealings that it is reasonable to infer that silence is an acceptable form of acceptance.


Must performance take any particular form in a bilateral contract?

No. For a bilateral contract, performance is permitted if it is a reasonable means of performance.


In a bilateral contract under the UCC, how is performance made?

by 1) actual shipment of goods; or 2) a promise to ship.


Under the Mirror Image Rule, acceptance must be what?

absolute and unequivocal.


At common law, terms of acceptance which are different from the terms of the offer are . . .

a rejection and a counteroffer.


Under the UCC, the shipment of nonconforming goods is both a . . .

acceptance and a breach.


How can a seller who ships nonconforming goods under a sale of goods contract avoid breaching the contract?

he can inform the buyer that the nonconforming goods are being sent as an accomodation.


Is the buyer required to accept an accommodation?

No, he may reject them.


If a seller ships nonconforming goods as an accommodation, and the buyer rejects the accommodation, what can the seller do?

He can reclaim the *accommodation goods.


The Mirror Image Rule only applies to what kind of contracts?

non-sales of goods.


The Battle of the Forms provision applies to what kind of contracts?

Sales of goods


Battle of the Forms

where an acceptance of an offer contains different or additional terms than the original offer, the acceptance is valid unless the acceptance of the offer is made conditional on the offeror's acceptance of the additional terms.


Under the Battle of the Forms, where at least one of the parties to a contract is not a merchant, and the terms of acceptance are different than the terms of the offer, what terms govern?

the terms of the offer govern unless the offeror agrees to the additional terms.


Under the Battle of the Forms, where both parties to a contract are merchants, and the terms of acceptance are different than the terms of the offer, what terms govern?

the terms of acceptance, unless they materially change the terms of the offer, make the acceptance of the offer conditional on the acceptance of the additional terms, or where the offeror has already objected to the terms.


Where a merchant's confirmatory memo is sent to a buyer to confirm the sale, and the terms contained in the memo are different from the terms orally agreed to, which terms control?

The terms contained in the confirmatory memo, because confirmatory memos are subject to the Battle of the Forms provisions. The terms in the memo control unless they materially change the terms of the contract, etc.


When an acceptance is made expressly conditional to the acceptance of new terms, it is a _______________ of the offer and the extending of a new offer.



An offer that results from a conditional acceptance cannot be accepted by ___________.

performance. There must be a return promise.


What happens if there is a conditional acceptance, the new terms are accepted, and the seller ships nonconforming goods?

It is still a contract. If the parties ship or accept goods after a conditional acceptance, a contract is formed by their conduct, and the new terms are not included.


What is the result of two parties not coming to a contract, but both parties end up performing the terms of the would-be contract?

There is a contract formed. Bilateral contracts can be formed by pure performance.


Under the mailbox rule, an acceptance is effective . . .

at the moment of dispatch, provided that the mail is properly addressed and stamped.


In an option contract, when is acceptance effective?

Upon its *receipt.*


Where an offeree sends a rejection and then sends an acceptance, which controls?

whichever gets to the offeror first.


If the offeree sends an acceptance and then a rejection, what effect?

the acceptance is effective unless* the rejection arrives first and the offeror detrimentally relies on it.


Under the UCC, when is an auction sale complete and all sales are locked in?

upon the fall of the hammer or other symbolic gesture.


Auction sales are presumed to be ________________.

with reserve, unless the goods are explicitly put up without reserve.


What does "with reserve" mean?

that the auctioneer can withdraw the goods at any time prior to the fall of the hammer; i.e. just because you bid on something and won doesn't mean you get it until the hammer falls.