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Chapter 11 The agreement Acceptance I Acceptance offeree in the manner invited or required by the offer is a manifestation of assets of the terms of the offer mabe by the a 3 Factors i Oferee intended to enter the contract ii The oferee accepted on the terms proposed by the offeror iii Oferee communicating his acceptance to the offeror b Intention to Accept i Court looks for the present intent to contract on the part of the oferee that it found on the part of the offeror c ii Judged by an objective standard Intent dn Acceptance on the Offeror s terms i Common Law Mirror Image Rule 1 must be mirror image of offeror 2 attempts to change offeror are treated as counter offers 3 No rejection is implied if an offeree asks about the terms of 4 Or accepts offeror while complaining about terms ii UCC battle of the forms 1 parties use standard forms prepaired in advance by their offer lawyers a chance that both the acceptance and the offer match is really rare 2 Instead they rule that it doesn t have to match perfectly but still applies to contract and holds parties liable 3 Terms are thrown out if a The offer expressly limited acceptance to its own terms b The new terms would materially alter the offer c The offeror gives notice of objection to the new terms within reasonable time after receiving the acceptance d Communication of Acceptance i Unilaterial the oferree simply performs task ii Manner of Communication 1 Offeror the master of the contract has the power to specify precise time place and manner acceptance must be subimitted a Stipulation 2 If offeror makes no stipulation oferee can respond any way a reasonable person would think is justwithin a reasonable time II When Acceptance is Communicated a Acceptance by Instantaneous Forms of Communication i When there are instantinous forms of communication then there few problems determing when an offeree accepts offer b Acceptance by Non Instantinous Forms of Communication 1 say I accept i Mailbox 1 properly addressed and dispatched acceptances become effective once they are dispatched a even if they are lost and never found ii Operation of the Mailbox Rule Common Law 1 Same as above as long as in a reasonable time iii Operatin of the Mailbox Rule UCC 1 Same except a If offeree uses unreasonable circumstances i Examples 1 wrong address 2 incorrect Postage ii Not binding until offeror receives offer c Stipulated Means of Cimmunication i If there is a stipulation then one must follow this in order for it to be binding III Special Acceptance Problem Areas a Acceptance in Unilateral Contracts exchange of promise for an act i Offeror must perform the requested act in order to accept offer ii Offeree can not withdraw offer once offeror starts performing service 1 grass cutting example b Acceptance in Bilaterial Contracts exchange of promise for a promise i Acceptance can be implied aswell as expressed 1 selling corn example if they act then they accept c Silence as Acceptance i Offeree s silence without more is not an acceptance 1 Can NOT say If I don t hear from you then Ill know you accept my offer a Unless it is customary trade dealings in which they have a history of dealing with each other and acting in a certain way d Silence when a writing is Anticipated i Acceptance of an ambiguous offer 1 if offer is ambiguous then they may accept any way the see necessary 2 Acceptance by shipment a Accepting offer by shipping order to customer or promptly promising to ship the computers e Who can accept Offers i Oferees as the master of the offer have the right to choose


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UMD BMGT 380 - Chapter 11 The agreement: Acceptance

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