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15 Oct 2015

Contracts – Acceptance Introductory Notes

  The only person who can accept an offer is the person whom the offeror intended to create a power of acceptance.

  • Must be in response to an offer
  • Offeree must know of the offer at the time of alleged acceptance in order for acceptance to be valid.
  • Offeror controls method of acceptance, and can suspend mailbox rule.
    • Mailbox rule: an acceptance is effective upon dispatch
    • Unilateral contract: offer is accepted by full performance
    • If it is unclear whether acceptance is to occur through promise or performance, both may be acceptable.
  • Acceptance by Silence Exceptions:
    • If offeror has given offeree reason to understand that silence=acceptance, and offeree subjectively intends to be bound
    • If offeree accepts benefit of services IF had reasonable opportunity to reject services AND knew or should have known that the provider expected to be compensated
    • If prior course of dealing makes it reasonable that silence could be construed as acceptance
    • If offeree receives goods and keeps them (dominion)

Filed Under: Contracts Tagged With: Acceptance, Contract, Contracts, Law, Notes, study

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