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26 Cards in this Set
- Front
- Back
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What is meant by the term meeting of the minds?
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For a valid agreement, the parties must be in consensus ad idem, that is, there must be a meeting of the minds. There must be absolute agreement, and that both parties have the same thing in mind.
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What is acceptance?
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An acceptance is the communication to the offeror of a final and unqualified assent to the terms of the offer; made in the manner specified or indicated by the offeror. It can occur orally, in writing or, occasionally, it may be implied from the offeree’s conduct.
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What is an acceptance that has conditions?
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A counter offer, not an acceptance?
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What is implied acceptance of an offer?
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Implied acceptance is inferred from an examination of the conduct of the parties.
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What is express acceptance of an offer?
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Express acceptance takes place when the offeree directly assents to the offeror’s terms.
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Can acceptance be made without an offer?
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Acceptance must be made in response to an actual offer.
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Can an acceptance take place without communication?
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In some circumstances, such as it is clear that no communication is necessary. It does not need to be express if it is clear from conduct.
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Can acceptance be conditional?
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No – it must be absolute and unqualified.
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Can an offer be accepted by a third party?
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An offer may be accepted only by the person or group to whom it has been made, and the offeree must know all the material terms of the offer to make a valid acceptance. It can be accepted by a third party acting as the agent of the accepting party, but not by a third party for that party.
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How is a bilateral contract accepted?
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A bilateral contract is accepted by giving a promise or by implying the promise by performing the promised act.
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How is a unilateral contract accepted?
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A unilateral contract is accepted by performing an act. At the moment acceptance is validly given, the contract is formed, and the parties are thereby obligated to its terms. The offeree of a unilateral contract, except in special circumstances, has no duty to communicate with or notify the offeror of his performance of the requested act. The act itself is sufficient acceptance.
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Is an unsigned contract enforceable?
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Yes, if the actions of both parties imply to each other that the contract has been accepted.
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Who can accept an offer on behalf of a third party?
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A representative must have the authority to accept the offer. If not, the third party may be liable and the party which you intended to be in a commercial arrangement with may not have any liability at all.
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Is conduct enough to accept a contract?
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Yes, but silence alone is not enough. It must be communicated expressly or implied through conduct. There must be acknowledgement of an offer in order to claim acceptance.
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If a party has NOT had an offer communicated to them, but they act as though it has by performing the required actions, does a contract exist?
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No, they were not acting based on the offer because it was not communicated.
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Can an offer be accepted without any communication to the offeror?
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No, with the exception of a unilateral contract that does not specify that acceptance must be communicated.
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Can an offeror specify that silence is acceptance?
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No. Acceptance must be deliberate, will act; silence, a non-reply, could occur because of forgetfulness, bad manners, inadvertence or any other number of reasons. All would fall short of an intention to accept.
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Can an offeror waive the need for communicated acceptance?
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Yes, but the offeree must indicate that a particular form of acceptance, not involving communication, will suffice; the offeree must decide to accept; and there must be some overt act by the offeree evidencing a decision to accept and conforming to the mode of acceptance stipulated by the offeror-if there is one.
This is often found in unilateral contracts such as reward cases. |
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Where postal acceptance is contemplated, when is acceptance deemed to have taken place?
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When the acceptance is posted. The contract comes into existence at this moment even if there is a delay in delivery or no delivery, or the letter is lost.
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If acceptance is specified as required in writing, does the postal rule apply?
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No, this is specifying actual communication, so when it is received by any means is acceptance time.
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When dealing with instantaneous communications for contracts, when is the offer deemed to be accepted?
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When it is received.
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Can an offeror negate the postal rule?
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Yes, by stipulating actual acceptance.
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If an offeree posts acceptance, does that invoke the postal rule?
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No. If it is clear that acceptance by post was not contemplated, such as if the offer is made by another means such as telephone.
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Where is a contract created?
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Where the final act occurs. In the case of postal rule, where the acceptance is sent from. For all others it is the place that it is received.
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What are the four requirements for an offer?
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- Communicated
- Made to individual, group or world - Not an ITT - Can be revoked before acceptance |
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What are the seven requirements for acceptance?
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- Communicated
- In reliance of offer - Can only be made by offeree - Must comply with acceptance conditions - By post, effective at posting - Communication may be waived - Take place on time or within reasonable time. |
