Term
| An offeree's power of acceptance is terminated through lapse of time at what point? |
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Definition
| At the time specificed in the offer or, if no time is specified, at the end of a reasonable time. |
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Term
| When parties are bargaining face to face or over the telephone, the time for acceptance does not ordinarily extend beyond what? |
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Definition
| The end of the conversation, unless a contrary intention is indicated. |
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Term
| How may an intention to extend the time for acceptance beyond the conversation be indicated when the parties are negotiating in person or over the telephone? |
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Definition
| By express words or by circumstances. |
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Term
| A late manifestation of assent is considered what? |
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Definition
| A counteroffer (even if it does not proposed different terms). |
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Term
| Under what circumstances can silence in response to a late manifestation of assent be considered an acceptance of the counteroffer? |
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Definition
| Only when such silence qualifies as an exception to the general rule that silence is not ordinarily an acceptance. |
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Term
| True or false: A mere inquiry regarding an offer (including an inquiry regarding the possibility of additional or different terms or a request for a better offer) is ordinarily treated as a rejection of the offer. |
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Definition
| False. A mere inquiry is not a rejection. |
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Term
| What test is used to determine if a communication is a rejection? |
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Definition
| Objective theory of contract. |
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Term
| When does the offeree's power of acceptance terminate upon a rejection? |
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Definition
| When received by the offeror. |
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Term
| What test is used to determine if a communication is a counteroffer? |
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Definition
| Objective theory of contract. |
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Term
| When does the offeree's power of acceptance terminate upon the making of a counteroffer? |
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Definition
| When received by the offeror. |
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Term
| What is the doctrine of supervening impossibility? |
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Definition
| The death or destruction of a person or thing essential for performance after the offer is made and before acceptance is the non-occurrence of a condition of acceptance. |
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Term
| What is the doctrine of supervening illegality? |
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Definition
| A legal prohibition of the contract's performance enacted after the offer is made and before acceptance is the non-occurrence of a condition of acceptance. |
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Term
| When the offeror specifies a time within which the offer must be accepted, when that time passes does the power of acceptance terminate as a result of revocation or lapse of time? |
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Definition
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Term
| If an offer specifies an amount of time in which to accept the offer (as opposed to specifying a date), the time to accept begins running at what point? |
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Definition
| When the offer is received by the offeree because it is not an offer until it is delivered or communicated to the offeree. |
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Term
| What factors does a court consider in deciding what is a reasonable amount of time to accept an offer? |
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Definition
| (1) The nature of the proposed contract; (2) the purposes of the parties; (3) the course of dealing between the parties; and (4) any relevant usages of trade. |
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Term
| If it can be shown that the time taken by an offeree was in fact satisfactory to the offeror, what effect does that have on whether the offeree's power of acceptance terminated by lapse of time? |
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Definition
| The time taken is not considered to have been beyond a reasonable time. |
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Term
| What is the definition of "rejection"? |
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Definition
| A manifestation of intention by the offeree not to accept an offer unless the offeree manifests an intention to take it under further advisement. |
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Term
| If an offeree asks an offeror if the offeror would accept less money, is that a rejection? |
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Definition
| No, it is a mere inquiry. |
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Term
| When will a rejection not terminate the offeree's power of acceptance? |
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Definition
| When the offeror has manifested an intention that a rejection not terminate the offeree's power of acceptance. |
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Term
| Why does a rejection terminate the power of acceptance? |
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Definition
| Because the offeror, upon receipt of the rejection, will likely rely on it and might take actions to enter into a contract with a third party. |
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Term
| Why does a rejection not terminate the power of acceptance when the offeror has manifested an intention that it not terminate upon a rejection? |
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Definition
| Any reliance on the rejection would be unreasonable, and thus there is no justification for terminating the offeree's power of acceptance. |
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Term
| Must an offeror in fact rely on the offeree's rejection or counteroffeor for it to terminate the power of acceptance? |
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Definition
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Term
| Is a mere statement by the offeror that the offer will remain open for a specific time period itself be considered a manifestation that a rejection or counteroffer will not terminate the power of acceptance? |
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Definition
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Term
| True or false: The dispatch rule applies to determining the effective date of a rejection. |
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Definition
| False. It is not effective unless and until "received." |
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Term
| Who makes a rejection and who makes a revocation? |
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Definition
| A rejection is made by the offeree. A revocation is made by the offeror. |
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Term
| Does the dispatch rule apply when an acceptance is dispatched and a subsequent rejection overtakes the acceptance and is received by the offeror before the acceptance is received? |
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Definition
| Yes. A contract forms because the effective date of the acceptance was upon dispatch whereas the effective date of the rejection was upon receipt. |
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Term
| What is the definition of "counteroffer"? |
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Definition
| An offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer. Note, however, that a manifestation of assent that is late or not in the prescribed manner is also considered a counteroffer, even if it does not change the substantive terms of the offer. |
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Term
| A counteroffer terminates the offeree's power of acceptance unless what? |
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Definition
| The offeror or offeree manifests a contrary intention. |
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Term
| Why does a counteroffer terminate the power of acceptance? |
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Definition
| Because the usual understanding of a counteroffer is that prior proposals are dropped. |
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Term
| Why does a counteroffer not terminate the power of acceptance when the offeror indicates it will not have that effect? |
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Definition
| Because any reliance on the counteroffer as suggesting a rejection of the original offer would be unreasonable, and thus there is no justification for terminating the offeree's power of acceptance. |
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Term
| Why does a counteroffer not terminate the offeree's power of acceptance when the offeree indicates at the same time that she is still considering the original offer? |
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Definition
| Because any reliance on the counteroffer as suggesting a rejection of the original offer would be unreasonable, and thus there is no justification for terminating the offeree's power of acceptance. |
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Term
| A counteroffer terminates the power of acceptance at what point? |
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Definition
| When received by the offeror. |
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Term
| True or false: The dispatch rule applies to determining the effective date of a counteroffer. |
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Definition
| False. A counteroffer is not effective unless and until received by the offeror. |
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Term
| Will an attempted acceptance that is ineffective because it fails to comply with a prescribed method of acceptance terminate the offeree's power of acceptance? |
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Definition
| No. Although such an attempted acceptance is treated as a counteroffer, the fact that the offeree was intending to accept the original offer means that the offeree has manifested an intention to still consider the original offer. |
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Term
| A counteroffer is treated like what? |
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Definition
| A rejection, though technically a counteroffer and a rejection are different. A rejection does not provide the oringinal offeree with a power of acceptance. |
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Term
| If an offeree's power of acceptance is terminated through rejection or counteroffer, the only way for the offeree to accept the original offer is for what to happen? |
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Definition
| The offeror revives or renews the original offer. |
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Term
| True or false: As master of the offer, an offeror can specify any condition of acceptance (i.e., an event that will terminate the power of acceptance). |
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Definition
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Term
| True or false: A condition of acceptance must be express. |
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Definition
| False. It may be express, implied in fact, or implied in law. |
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Term
| How is an express condition of acceptance created? |
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Definition
| The offeror expressly states that the power of acceptance is terminated upon the occurrence or non-occurrence of some particular event. |
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Term
| True or false: If an offeror prescribes a method of acceptance or time for acceptance, the offeree's failure to manifest assent in the required manner is the non-occurrence of a condition of acceptance. |
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Definition
| False. It is a failure to accept in a required manner, and the offeree would ordinarily still have the power of acceptance by manifesting assent in the required manner. |
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Term
| What is a typical implied condition of accepting a reward offer? |
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Definition
| Being the first person to perform. |
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