Acceptance and Other Responses to the Offer

Question 1

What is Acceptance?

Answer 1

Acceptance of an offer is a manifestation of assent to the terms
thereof made by the offeree in a manner invited or required by the
offer.

Question 2

What are the elements of acceptance?

Answer 2

Required Elements:
1. Manifestation of Assent (must be unequivocal and unqualified, and judged by objective standard)
2. Terms of the Offer (Mirror Image Rule: Any deviation from the offer is a
counteroffer rather than acceptance.)
3. Manner Invited or Required (The manner required is considered a term
of the offer. If silent, then in any manner and by any medium
reasonable in the circumstance)

Question 3

How do Bilateral and Unilateral Contracts demonstrate acceptance?

Answer 3

Bilateral Contract: Acceptance when Promisee Issues a Promise
Unilateral Contract: Acceptance when Promisee Performs

Question 4

What are all the possible responses to an offer?

Answer 4

Acceptance

Rejection (communicates to the offeror that he does not intend to accept the offer and it terminates the offeree’s power of acceptance.)

Revocation (An offer is generally freely revocable at any time before it has been accepted if the offeree receives notice of the revocation. Notice of the revocation may be received directly from the offeror or indirectly from another party or by other means.
The revocation may be communicated by words or by actions of the offeror.)

Counteroffer (an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer. Offeree’s power of acceptance is terminated by his making of a
counteroffer, unless the offeror has manifested a contrary intention or unless the counteroffer manifests a contrary intention of the offeree.

Lapse of Time (An offeree’s power of acceptance is terminated at the time specified in the offer, or, if no time is specified, at the end of a reasonable time. What is a reasonable time is a question of fact, depending on all the circumstances existing when the offer and attempted acceptance are made.

Death (If either the offeror or offeree dies or becomes legally incapacitated, then the offer terminates, and the offeree no longer has the power of acceptance. Incapacity refers to an extreme physical or mental disability that prevents a party from being able
to manifest the intent necessary to enter into a bargain.)

Question 5

How do Auctions function in the realm of Acceptance?

Answer 5

Bidder: Offeror
Calling Out Price: An invitation to deal.
Bidder Raises Hand:
Offer Hammer Falls: Acceptance
Auctioneer: Offeree

Question 6

Is silence Acceptance?

Answer 6

General Rule: Silence is NOT Acceptance

Exceptions
● Offeree indicates, by words or conduct, that silence is acceptance.
● In past business dealings, the parties operated so that silence was acceptance.
● The offeree has exercised dominion over the consideration that was offered.

Question 7

What is the Mailbox Rule in Acceptance?

Answer 7

When sent through the mail, an acceptance is effective on dispatch. Everything else—i.e., the offer, a rejection, a counteroffer or revocation—is effective on receipt.

Exceptions:
1. Offer stipulates when acceptance must be received.
2. Option Contracts
3. Federal Government Contracts.