Acceptance

Question 1

Acceptance in a unilateral contract

Answer 1

When O’R makes an offer, and acceptance is when O’E completes the act. Only one party is making a promise and they are requesting performance

An acceptance is usually performance of the act

Question 2

Acceptance in a bilateral contract

Answer 2

A promise for a promise

Acceptance is by promise (performance is usually later) and promise must usually be communicated to the O’R

Question 3

Preliminary problems with acceptance

Answer 3

1. Knowledge of the offer
2. Intent to accept
3. Who may accept?
4. Notice

Question 4

Knowledge of the offer in a unilateral contract

Answer 4

Majority: Knowledge of offer sometime before completion

Minority/Traditional: Must have knowledge of offer before you start

Question 5

Knowledge of the offer in a bilateral contract

Answer 5

Not an issue in bilateral contracts

Question 6

Intent to accept in a unilateral contract

Answer 6

1. Traditional/Minority: OE has the burden to prove they did perform with knowledge and intent
2. Majority/Modern: If you complete the act, it’s presumed you had intent to act (Unless you had conduct or words to the contrary)

Question 7

Intent to accept in a bilateral contract

Answer 7

Usually not an issue in bilateral contracts

Question 8

Notice of performance for unilateral contracts

Answer 8

1. Traditional: You don’t need to notify before or at the time of start of performance - UNLESS the OR specifically asks for it when he offers

Question 9

Notice of acceptance for a bilateral contract

Answer 9

Notice is not an issue

Question 10

Who may accept

Answer 10

Anyone to whom the offer is made

Question 11

Notice of Acceptance for Unilateral Contracts

Answer 11

Traditional view: Notice is not necessary unless the O’R requires it

Majority view: Notice is not necessary unless O’R does not know or have reason to know that the O’E is partaking in the offer

Question 12

Acceptance by Silence

Answer 12

General Rule: You cannot force someone to accept by silence

Minority: If you remain silent –> No true Acceptance

Majority: You cannot force someone’s acceptance by their silence, unless the OE intends by silence to accept. An OE can accept an offer by staying silent if they intended to by staying silent
- Day v. Caton: Silence operates as acceptance if the user had reasonable opportunity to reject terms

Question 13

Valid Acceptance by Silence if (Majority)

Answer 13

1. D had knowledge of the performance
2. D is benefiting from P’s performance
3. P expects payment
4. D knew that P acted w/ expectation of being paid
5. D had the opportunity to object but did not
6. Reasonable person in the shoes of the O’E will believe O’R expects payment

Question 14

Exception to Acceptance by Silence

Answer 14

1. If you’re considered family

2. There was no expectation of payment by P

Question 15

Acceptance by Silence: Dominion

Answer 15

If you exercise dominion over something, then you intended to own it

Question 16

Ongoing delivery: Acceptance by silence

Answer 16

There is an ongoing delivery, and the person does not say anything, then that person has accepted the offer

Silence can be taken as acceptance of an offer if the parties had a prior history of similar dealing that would indicate that the party would decline the offer if it did not want to accept (Hobbs v. Massaoit Whip)