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Flashcards in Page 9 Deck (17):
1

What are the two viewpoints about Who has the burden of the risk when it comes to mistake in transmission?

- majority: offeror
- Minority: no contract, because not liable for someone else's negligence

2

If a telegram company writes the wrong numbers on an offer, who is bound by those numbers?

The offeror, but if the offeree knows they are obviously wrong/should have known, he can't snap them up

3

What are the three types of vacillating offerees?

- acceptance followed by rejection
- acceptance overtaking rejection
- acceptance failing to overtake rejection

4

If you accept an offer, then send an email rejecting it, what happens?

The contract was formed because acceptance is effective on dispatch and it happened before the email. Unless other party detrimentally relied on the rejection, then there is no contract

5

If you send a letter rejecting an offer, then email an acceptance, what happens?

Contract is formed because dispatch and receipt of acceptance happened before receipt of rejection, so it is not possible to detrimentally rely

6

If you send a rejection of an offer by mail, then send an email accepting it two days later, but the letter is received first, what happens?

Mailbox rule does not apply and no contract is formed because acceptance was received after rejection which was effective on dispatch

7

If an offer was made, a rejection sent, but before the rejection was received, and acceptance was dispatched, what happens?

Whatever is received first is valid. Acceptance: contract. Rejection: no contract.

8

What happens in crossed acceptance and revocation situations?

If acceptance is dispatched before revocation is received: contract. Minority: revocation effective on dispatch, so contract form and if acceptance dispatched first, but not if revocation is dispatched first

9

If parties are in each other's presence, when is acceptance effective?

When the offer hears it/should have heard it (majority: when spoken by offeree)

10

When is an acceptance effective on the phone?

When spoken or heard, but if there is a break in connection, the understanding of the least blameworthy party prevails

11

What are the three different approaches to receiving unsolicited goods?

- CL: if you keep them, that is an implied promise to pay
- modern: treat as gift
- UCC: gift

12

What are the two different views about when an offer can be revoked?

- classic: anytime before complete performance
- modern: once offeree begins performance, offer becomes irrevocable

13

If an offeree comes prepared to perform and the offeror stops him, what has happened?

The offeree tendered performance by showing up, and that made the offer irrevocable

14

What are the different ways you can terminate the power of acceptance?

Lapse of time, late acceptance, death/incapacity/distraction, conditional acceptance, operation of law, revocation, rejection, repudiation, withdrawal

15

If language in the offer states when it ends, how does the time run?

From the date of receipt, if not obviously delayed in transmission

16

If an offer is sent by mail, acceptance must be mailed by when to be timely?

Midnight of the date of receipt

17

What are the two different views about late acceptance?

- classical view: offer can be accepted only by a communicated acceptance
- restatement: if offeror doesn't object, and then acceptance is valid