if an offeror specifies when and how an acceptance must bemade, the offeree: a)
ID: 2770920 • Letter: I
Question
if an offeror specifies when and how an acceptance must bemade, the offeree: a) must not accept the contract all b)cannot accept the contract for 90 days c)must comply with those terms to create a validcontract d)does not have to comply with any of the limiting terms if an offeror specifies when and how an acceptance must bemade, the offeree: a) must not accept the contract all b)cannot accept the contract for 90 days c)must comply with those terms to create a validcontract d)does not have to comply with any of the limiting termsExplanation / Answer
1. Mode
a. Authorized Means of Acceptance
If an offeree uses a mode of communication expressly or impliedlyauthorized by the offeror,
acceptance is effective when sent. This is the mailbox rule(deposited acceptance rule).
1) Express
When an offeror specifies how acceptance should be made, a contractis
not formed unless the offeree uses that mode of acceptance. If theofferee uses
that mode, the acceptance is effective even if the offeror neverreceives it.
2) Implied
When an offeror does not specify how acceptance should be made orspecifies
that the acceptance will be effective only when received, theofferee may use any
medium that is reasonable under the circumstances (which includethe means
used by the offeror to make the offer).
3) Exception
If the acceptance is not properly dispatched (for example, it isnot correctly
addressed), in most states it will not be effective until receivedby the offeror or
the offeror’s agent. (If timely sent and timely received,however, it is considered
to have been effective on dispatch.)
b. Unauthorized Means of Acceptance
1) Effective When Received
If an offeree uses a mode of communication that was not authorizedby
the offeror, acceptance is effective when received.
2) Effective When Sent
If an acceptance is timely sent and timely received, however,despite the means by
which it is sent, it is considered to have been effective whensent.
c. Rejection and Acceptance
Sometimes an offeree sends a rejection first, then later changeshis or her mind and sends an
acceptance. The first communication to be received by the offerordetermines whether a
contract is formed. If the rejection is received first, there is nocontract.
2. Timeliness
Acceptance is timely if it is made before the offer isterminated.
IV. CONTACT FORMATION IS AN ELECTRONIC AGE
Traditional contract principles also apply to new forms ofcommunication.
A. FAXED OFFERS AND ACCEPTANCES
A signature on a faxed document is legally binding. When anacceptance is faxed but is
not received in a timely fashion, it will not be consideredeffective until it is received.
B. CLICK-ON ACCEPTANCES
Clicking on a computer screen constitutes a valid acceptance of acontractual offer (see
Chapter 21).
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