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| §24 (Definition): An offer is a manifestation of a willingness to enter into a bargain so made as to justify another person in thinking that his assent is invited and will conclude it. |
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| §26 (Preliminary Negotiations): A manifestation of a willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude the bargain without a further manifestation of assent. |
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| §32 (Ambiguous Offers): Invitation of promise or performance – in case of doubt, an offer is interpreted as inviting the offeree to accept either by promising to accept or rendering the performance, as the offeree chooses. |
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§50 (Acceptance of Offer Defined):
1. Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer
2. Acceptance by performance requires that at least part of what the offer requests be performed or tendered and includes acceptance by a performance which operates as a return promise.
3. Acceptance by a promise requires that the offeree complete every act essential to the making of the promise |
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Term
| Methods of Termination of the Power of Acceptance |
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Definition
| §36 (Methods of Termination of the Power of Acceptance): May be terminated by: rejection or counter-offer, lapse of time, revocation by the offeror, or death or incapacity of the offeror or offeree. In addition, an offeree’s power of acceptance is terminated by the non-occurrence of any condition of acceptance under the terms. |
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Term
| Indirect Communication of Revocation |
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Definition
| §43 (Indirect Communication of Revocation): An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into a proposed contract and the offeree acquires reliable information to that effect. |
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| §58 (Mirror Image Rule: Necessity of Acceptance Complying with Terms of Offer): An acceptance must comply with the requirements of the offer as to the promise to be made or the performance to be rendered |
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| Mailbox Rule - The offer is accepted once everything necessary to the making of promise has been done. Acceptance is effective when communication is sent. Contract is binding even if offeror does not know of offeree’s acceptance. This is an offeree protection rule |
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Term
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Definition
| Option Contract: an exception to the revocation of an offer - legal device that enables an offeror to make an offer that cannot be revoked – creates in the offeree an option – offeree is free to think about the offer without worry of revocation. Offeror promises not to revoke if offeree provides some sort of consideration, typically money. Offeree has time to consider accepting contract without it becoming irrevocable. |
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