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Questions and Answers
What was one of the key issues addressed by the Carbolic court regarding the ad?
What was one of the key issues addressed by the Carbolic court regarding the ad?
- The fairness of the product pricing.
- Whether the ad constituted a valid offer. (correct)
- The history of the Carbolic company.
- The reputation of the influenza vaccine.
Performance of the stated condition in a unilateral contract communicates acceptance.
Performance of the stated condition in a unilateral contract communicates acceptance.
True (A)
What standard did the court use to evaluate vague time limits in offers?
What standard did the court use to evaluate vague time limits in offers?
Reasonableness standard
The Carbolic case illustrates the nature of __________ contracts, where an offer is accepted by performance.
The Carbolic case illustrates the nature of __________ contracts, where an offer is accepted by performance.
Match the following terms with their definitions:
Match the following terms with their definitions:
Which of the following indicates that a contract has been accepted in a unilateral offer?
Which of the following indicates that a contract has been accepted in a unilateral offer?
What does an advertisement need to include to potentially be viewed as a binding offer?
What does an advertisement need to include to potentially be viewed as a binding offer?
If an offer does not state a specific time for acceptance, it automatically remains valid indefinitely.
If an offer does not state a specific time for acceptance, it automatically remains valid indefinitely.
What is the primary argument made by consumer advocates regarding the RLCC?
What is the primary argument made by consumer advocates regarding the RLCC?
The Mailbox Rule makes acceptance effective upon receipt by the offeror.
The Mailbox Rule makes acceptance effective upon receipt by the offeror.
In a unilateral contract, how is acceptance achieved?
In a unilateral contract, how is acceptance achieved?
In the case of Ever-Tite, acceptance could be provided through either __________ or the commencement of performance.
In the case of Ever-Tite, acceptance could be provided through either __________ or the commencement of performance.
Match the following cases with their key characteristics:
Match the following cases with their key characteristics:
What is a primary distinction between unilateral and bilateral contracts?
What is a primary distinction between unilateral and bilateral contracts?
In electronic contracts, terms such as clickwrap or browsewrap simplify consent processes.
In electronic contracts, terms such as clickwrap or browsewrap simplify consent processes.
What is the role of the 'master of the offer' principle in contract law?
What is the role of the 'master of the offer' principle in contract law?
Acceptance by mail is effective on __________ unless otherwise stated by the offeror.
Acceptance by mail is effective on __________ unless otherwise stated by the offeror.
Which aspect of modern contracting creates complications in offer and acceptance?
Which aspect of modern contracting creates complications in offer and acceptance?
What kind of contract allows acceptance only through performance?
What kind of contract allows acceptance only through performance?
A bilateral contract can be accepted by either a promise or performance.
A bilateral contract can be accepted by either a promise or performance.
What happens to an offer when the offeror dies?
What happens to an offer when the offeror dies?
An ___ listing is a unilateral contract in real estate.
An ___ listing is a unilateral contract in real estate.
Match the type of listing with its description:
Match the type of listing with its description:
In the Ever-Tite Roofing Corp. v. Green case, what constituted acceptance?
In the Ever-Tite Roofing Corp. v. Green case, what constituted acceptance?
In Beard Implement Co. v. Krusa, a contract was formed despite the dealer's lack of signature.
In Beard Implement Co. v. Krusa, a contract was formed despite the dealer's lack of signature.
What critical factor distinguished the acceptance methods in Ever-Tite and Beard Implement cases?
What critical factor distinguished the acceptance methods in Ever-Tite and Beard Implement cases?
The case of Davis v. Jacoby concluded that the offer was a ___ contract.
The case of Davis v. Jacoby concluded that the offer was a ___ contract.
Which statement best represents the Restatement (Second) of Contracts § 32?
Which statement best represents the Restatement (Second) of Contracts § 32?
The promise made by Mr. Whitehead in Davis v. Jacoby was considered a unilateral offer.
The promise made by Mr. Whitehead in Davis v. Jacoby was considered a unilateral offer.
What is a primary characteristic of real estate brokerage contracts?
What is a primary characteristic of real estate brokerage contracts?
A purchase order signed only by the buyer, requiring dealer acceptance, was ruled as not forming a valid ___ in Beard Implement Co. v. Krusa.
A purchase order signed only by the buyer, requiring dealer acceptance, was ruled as not forming a valid ___ in Beard Implement Co. v. Krusa.
What is often a reason for the rarity of unilateral contracts in practice?
What is often a reason for the rarity of unilateral contracts in practice?
What type of contract does a bilateral contract fully protect?
What type of contract does a bilateral contract fully protect?
Silence can always be considered as acceptance in contractual agreements.
Silence can always be considered as acceptance in contractual agreements.
What is the significance of the Carbolic Smoke Ball case?
What is the significance of the Carbolic Smoke Ball case?
In a unilateral contract, the offeror states, 'If you ______, I will pay Y.'
In a unilateral contract, the offeror states, 'If you ______, I will pay Y.'
Match the following contractual terms with their definitions:
Match the following contractual terms with their definitions:
What was one of the defenses used by the defendant in Carlill v. Carbolic Smoke Ball Co.?
What was one of the defenses used by the defendant in Carlill v. Carbolic Smoke Ball Co.?
An offeror can set conditions for how acceptance is to be communicated.
An offeror can set conditions for how acceptance is to be communicated.
What happens if an acceptance is mailed before a specified deadline?
What happens if an acceptance is mailed before a specified deadline?
Davis v. Jacoby highlights the importance of ______ in contractual acceptance.
Davis v. Jacoby highlights the importance of ______ in contractual acceptance.
Match the concepts related to acceptance:
Match the concepts related to acceptance:
What characterizes a unilateral contract?
What characterizes a unilateral contract?
Accepting a unilateral contract requires notification to the offeror during performance.
Accepting a unilateral contract requires notification to the offeror during performance.
What risk does the mailbox rule place on the offeror?
What risk does the mailbox rule place on the offeror?
A notice of revocation is effective only upon ______.
A notice of revocation is effective only upon ______.
What does 'continuing offer' refer to in unilateral contracts?
What does 'continuing offer' refer to in unilateral contracts?
Flashcards
Unilateral Contract
Unilateral Contract
A type of contract where one party makes a promise in exchange for the other party's performance of a specific act.
Offer
Offer
A statement of willingness to enter into a contract on specific terms, made with the intention of being legally bound upon acceptance.
Acceptance
Acceptance
The act of agreeing to the terms of an offer, creating a binding contract.
Acceptance by Performance
Acceptance by Performance
A type of acceptance where the offeree performs the requested act, fulfilling the terms of a unilateral contract.
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Offer in an Ad
Offer in an Ad
A legal doctrine stating that an offer can become a binding contract if the offeror creates a clear and distinct promise, inviting the offeree to perform a specified act.
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Expiration by Its Own Terms
Expiration by Its Own Terms
When an offer terminates due to the passage of time, either explicitly stated or implied by a reasonable timeframe.
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Revocation by the Offeror
Revocation by the Offeror
An offer can be revoked by the offeror before it's accepted, except in specific cases like option contracts or partial performance in unilateral contracts.
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Counteroffer
Counteroffer
A counteroffer is a response to an offer that changes the terms of the original offer, effectively rejecting the original offer.
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Master of the Offer
Master of the Offer
The offeror controls the terms of acceptance, dictating how and when acceptance can occur. The offeror's wording is paramount in determining valid acceptance.
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Mailbox Rule
Mailbox Rule
Acceptance is considered effective upon dispatch (e.g., sending a letter) if the offeror didn't specify otherwise.
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Received Acceptance
Received Acceptance
Acceptance is effective when received by the offeror if explicitly stated in the offer terms.
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Clickwrap Agreement
Clickwrap Agreement
Acceptance by clicking a button or check box acknowledging agreement with online terms of service. Often used for online purchases.
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Browsewrap Agreement
Browsewrap Agreement
Acceptance by browsing and using a website implies consent to its terms of service, often displayed at the bottom of the page.
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Explicit Acceptance Methods
Explicit Acceptance Methods
Expressly defining acceptable methods for acceptance in the offer, such as 'written acceptance' or 'commencing performance'.
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Offeror Determines Acceptance
Offeror Determines Acceptance
The contract's formation is highly dependent on the terms set by the offeror. The offeror dictates how and when the acceptance can occur.
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Death or Incompetency of Offeror
Death or Incompetency of Offeror
An offer is terminated by operation of law if the offeror dies or is adjudicated incompetent.
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Offers Inviting Acceptance by Either Promise or Performance
Offers Inviting Acceptance by Either Promise or Performance
Offers that allow acceptance either by a promise or by performance.
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Unilateral Contracts in Practice
Unilateral Contracts in Practice
Rewards for specific actions, like finding lost property or selling real estate.
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Common Practice: Bilateral Contracts
Common Practice: Bilateral Contracts
Most business deals use a promise as the form of acceptance.
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Restatement 2nd of Contracts § 32
Restatement 2nd of Contracts § 32
A method for accepting an offer that minimizes confusion about the method of acceptance.
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Open Listing
Open Listing
A real estate listing where the broker gets a commission only if they successfully find a buyer.
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Exclusive Listing
Exclusive Listing
A real estate listing where the broker promises best efforts and the seller promises a commission if the broker finds a buyer.
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Exclusive Right to Sell
Exclusive Right to Sell
A real estate listing where the broker promises best efforts, and the seller promises a commission if the property is sold by anyone, regardless of who finds the buyer.
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Ever-Tite Roofing Corp. v. Green
Ever-Tite Roofing Corp. v. Green
A case where starting performance by loading trucks and traveling to the site was deemed sufficient for acceptance of a roofing contract.
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Beard Implement Co. v. Krusa
Beard Implement Co. v. Krusa
A purchase order signed by the buyer but not by the dealer was not considered binding when acceptance required the dealer’s signature.
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Davis v. Jacoby
Davis v. Jacoby
A case where the promise to come and provide care for an elderly couple was considered acceptance of a bilateral offer, even though the offeror died before performance.
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Presumption in Favor of Bilateral Contracts
Presumption in Favor of Bilateral Contracts
When an offer doesn't explicitly state how it can be accepted, the law assumes it can be accepted by either a promise or performance.
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Puffery
Puffery
A statement that is not intended to be a legally binding offer. Usually used in advertising or promotional materials.
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Offer to the Public
Offer to the Public
A contract formed by an offer made to the public, generally accepted through performance of specified actions.
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Revocation
Revocation
When the offeror, through their actions or words, clearly expresses their intent to terminate the offer before acceptance.
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Reward-type Offer
Reward-type Offer
An offer made to the public with the intent to be accepted by anyone who fulfills the conditions.
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Offeror as Master of the Offer
Offeror as Master of the Offer
The legal principle that the offeror controls the terms of the offer and can specify the form or method of acceptance.
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Silence as Acceptance
Silence as Acceptance
Generally, silence does not imply acceptance. However, there are exceptions where past dealings or specific circumstances suggest acceptance.
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Effective Time of Acceptance
Effective Time of Acceptance
The point in time where acceptance becomes legally effective. For mailed acceptance, it's when the acceptance is sent (dispatch)
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Race Between Revocation and Acceptance
Race Between Revocation and Acceptance
A situation where a revocation and acceptance are both in transit, creating a 'race' to see which one is received first.
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Acceptance by Commencement of Performance
Acceptance by Commencement of Performance
The principle that starting performance can constitute acceptance, but finishing performance may be required depending on the terms of the offer.
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Compliance with Offer Terms
Compliance with Offer Terms
A legal principle that the terms of an offer must be complied with for acceptance to be valid.
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Carbolic Smoke Ball Case
- Carbolic Smoke Ball Co. made a public offer to pay £100 to anyone who used their product as directed and still contracted influenza.
- The court ruled this was a valid unilateral offer, not just "puffery."
- Acceptance was by performance—using the smoke ball as directed and getting sick.
- Notice of acceptance wasn't required; the act of using the product sufficed.
Offer and Acceptance Principles
- Offers can be terminated by rejection, expiration, revocation, or death/incapacity.
- A unilateral contract is accepted by performance.
- A bilateral contract is accepted by a promise.
- Some offers allow acceptance by either a promise or performance.
- Offers inviting acceptance by performance can be accepted once performance begins
- The offeror is the "master of the offer," controlling the manner and method of acceptance
Examples and Illustrative Cases
- Ever-Tite Roofing Corp. v. Green: Acceptance by commencement of performance (loading trucks to the job site).
- Beard Implement Co. v. Krusa: Acceptance required the dealer's signature; no contract formed without it.
- Davis v. Jacoby: Circumstances suggested a bilateral contract (acceptance by a promise to perform).
- Carlill v. Carbolic Smoke Ball Co.: Classic example of a unilateral contract; implied notification of acceptance once the conditions were met.
Additional Rules on Acceptance
- Offerors can specify specific acceptance methods.
- Silence generally does not constitute acceptance.
- Special circumstances may permit silent acceptance
Mailbox Rule
- Acceptance by mail is effective upon dispatch, not receipt.
- Offers requiring "receipt" of acceptance do not apply to the mailbox rule
- Revocation takes effect upon receipt by the offeree.
###Modern Nuances and RLCC
- Modern electronic contracting complicates acceptance timing and methods.
- The proposed Restatement of Consumer Contracts (RLCC) suggests binding terms even without a formal assent.
- This creates an evolution of acceptance principles.
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