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39 Cards in this Set

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In what manner must an acceptance be made?
(1) In the matter requested or authorized by the offeror.
For a valid acceptance, who may accept?
(1) Only the person to whom it is made
For a valid acceptance, must it be unequivocal and unqualified?
(1) Yes
For a valid acceptance, what does a unilateral contract do?
(1) A unilateral contract may be accepted only by doing the act requested by the offeror, with knowledge of the offer and the intent to accept it.
For a valid acceptance, what does a bilateral contract do?
(1) Here the mere giving of the counter promise to the offeree is all that is required.
When is acceptance effective?
(1) Normally, acceptance is effective upon dispatch.
Is an acceptance sent by mail effective only when received? [the mailbox rule—adams v. lindsell]
(1) No. (2) Acceptance occurs the moment the letter of acceptance is posted, even if it is never received by the offeror.
Does a small minority give an exception to the general rule that acceptance is not final until the letter reached its destination?
(1) Yes. But it is widely rejected.
What are the acceptable means of acceptance?
(1) Acceptance must be by a means authorized by the offeror.
What are the acceptable means of acceptance if the offeror expressly or impliedly requested certain type of means of communication of the acceptance?
(1) The offeree must use that means or some equally rapid and reliable means.
What are the acceptable means of acceptance if no specific means are requested
(1) Then the offeree must use a means that are reasonable under all of the circumstances.
Where the offer is unclear as to whether a bilateral or unilateral contract is contemplated, what is the policy of the law to construe it as?
(1) To construe it as a n offer for a bilateral contract rather than unilateral.
What is the difference between a BILTERAL and a UNILATERAL contract in terms of immediacy and complete protection?
(1) A bilateral contract affords immediate rights and complete protection to both parties, since a contract arises as soon as the offeree promises to perform, where as an offer for a unilateral contract does not ripen into a binding contract until the performance is actually rendered.
Must performance by the offeree be induced solely by the offer of compensation to be binding? [performance not principally induced by offer---kockner v. green]
(1) No (2) If an act is required by the offeror as consideration for a unilateral contract, the act need only be performed with the intent of accepting the offer.
Will performance of an act contemplated by an offer for a unilateral contract for a contract if the act is done involuntarily?
(1) No.
Is the advertisement for a reward an offer that can be accepted by merely doing what the ad invites? [performance of advertised offer—carlill v. carbolic smoke ball Co]
(1) Yes. (2) A unilateral contract was offered.
Is the offeror’s obligation under the contract subject to the implied condition that he receives notice of the offeree’s performance within a reasonable time thereafter?
(1) Yes. Does not prevent formation of the contract but does discharge the offeror’s obligations there under.
In a Guaranty Contract, is it necessary for P to give notice to D of his acceptance of D’s guaranty contract? [Guaranty contract—Bishop v. Eaton]
(1) Yes (2) This was a unilateral contract; acceptance was by P signing on the loan to D’s brother (3) Guaranty contracts are an exception to the rule.
How is the acceptance of a bilateral contract normally accomplished by?
(1) Giving a return promise, communicated to the offeror in a timely fashion by properly authorized means.
Must notice of an acceptance be given if the offeror does not require it? [no notice requested—international filter co. v. Conroe gin, ice and light co]
(1) No.
If a purchase order suggests acceptance by return of acknowledgement, but the seller accepts by performance instead, are the terms of the purchase order binding? [non-exclusive manner of acceptance specified—Polaroid corp. v. Rollins environmental services (NJ), Inc. ]
(1) Yes (2) But if the offeror merely suggested permitted method of acceptance, other methods are not precluded.
Does a general contractor accept a subcontractor’s bid merely be listing the subcontractor in its bid? [Liability of general contractor—Holman erection Co. v. Orville E. Madsen & sons, Inc.,]
(1) No. (2) The listing of a subcontractor in a general contractor’s bid does not constitute acceptance of the sub’s bid. (3) This procedure prevents bid shopping.
Is an acceptance binding where it is made later than the parties contemplated but the offeror does nto object to the delay? [late acceptance not objected to—philips v. Moor]
(1) Yes (2) The acceptance was not absolute. An offer must be responded to within a reasonable amount of time.
Can the offeror force the offeree to reply by wording his offer “your silence will be an acceptance of my offer.”?
(1) NO. But acceptance can be done by silence.
Do any of the restatement second 69 exceptions allow silence to constitute acceptance aply to the negotiations between P and D? [when silence constitutes acceptance—Vogt v. Madden]
(1) No.
What are the exceptions that make an offeree’s silence to constitute an exception
(1) Where the offeree takes the benefit of offered services with reasonable opportunity to reject them. (2) Where the offer or gives the offeree reason to understand that assent may be manifested by silence or inaction, and the offeree in remaining silent and inactive intends to accept the offer. (3) Where, because of previous dealings or otherwise, it is reasonable that the offeree should notify the offeror if he does not intend to accept.
Is unreasonable delay in notifying P that his offer was rejected an acceptance?
(1) Yes. (2) The offeror needed ot know where the offer was accepted or rejected: P had reasonable expectations that the offer would be accepted.
Does silence also mean acceptance when past dealings would indicate that they would?
(1) Yes.
If a web site requires the user to click a box indicating agreement to contract terms contained on the webs site, are the terms of the contract binding on the person who clicks the box? [acceptance over the internet—Capsi v. Microsoft Network, L.L.C.,]
(1) Yes (2) P’s all consented to D’s forum selection clause.
When is a contract said to be “implied in fact”?
(1) If the promises of the parties are inferred from their acts or conduct alone, without spoken or written words.
If services are rendered by one person for another which are knowingly and voluntarily accepted, does the law imply a promise to apply the reasonable value of the services?[acceptance of services creates an implied contract—nursing care services, inc. v dobos]
(1) Yes.
When may a contract implied in law, or a “quasi contract” arise?
(1) To avoid unjust enrichment of the recipient of the services. (2) Liability to pay may be imposed only when the person for whose benefit the services were rendered requested the services ore knowingly and voluntarily accepted their benefits. (3) EXCEPTION: where emergency aid is rendered such as is necessary to prevent the recipient from suffering serious bodily harm or pain.
Does the offeree’s silence constitute acceptance when he knows that the offeror expects payment? [silence as acceptance in an implied in fact contract—Dday v. Caton]
(1) Yes. (2) If D accepts the benefit of valuable services when he has the option to accept or reject them, knowing that P expects payment, then silence will be interpreted as acceptance.
Is unjust enrichment a relevant factor in a suit based on a contract implied in fact? [unjust enrichment—Bastian v. Gafford]
(1) No. (2) It is irrelevant to a contract implied in fact
How can contracts implied in fact be distinguished from contracts implied in law, or quasi contracts?
(1) The latter arise where there is really no mutual assent, but to avoid inequities and unjust enrichment, the law fictionally implies a promise to pay for benefits or services rendered, even though no such promise was ever made or intended.
May a new personel handbook become part of an existing employment contract? [Personnel handbooks—pine river state bank v. mettille]
(1) Yes(2) It may create a binding unilateral contract upopn acceptance by the employee, but an employer’s general statement of policy do not create a contract.
Once an employers unilaterally adopted policy—which requires employees to be retained so long as a specified condition does not occur—has become a part of the employment contract, may the employer thereafter unilaterally terminate the policy, even thought the specified condition has not occurred? [modification of employment policies—Asmus v. Pacific bell]
(1) Yes.
What is the MAJORITY rule that allows an employer to terminate or modify a contract that has no fixed duration period, so long as
(1) It does so after a reasonable time period (2) It provides employees with reasonable notice (3) The modification does not interfere with vested employee benefits.
What is the MINORITY rule that allows an employer to terminate or modify a contract that has no fixed duration period, so long as
(1) Prevents employers from terminating or modifying unilateral employment contracts without the employees express knowledge and const, on the ground that such a change would require additional consideration and acceptance.