Contract Law Week 3

Questions and Answers

What does acceptance in contract law entail?

Agreeing to perform the offerer's actions

Negotiating new terms

Rejecting the terms verbally

Agreeing to the terms of an offer (correct)

Which statement best describes the rules of acceptance?

Acceptance can include conditional changes

Acceptance makes use of passive acknowledgment

Acceptance must be clear and unqualified (correct)

Acceptance must be vague to allow for flexibility

Inferred acceptance can be determined by which of the following?

Actions indicating acceptance (correct)

Formal discussions of terms

Directly stated agreement

Specific written contracts

How is silence generally treated in terms of acceptance?

Silence usually cannot be considered acceptance Signup and view all the answers

What is the Postal Acceptance Rule?

Acceptance is valid as soon as it is posted Signup and view all the answers

In modern communication methods, when is acceptance considered valid?

When the message is received Signup and view all the answers

Which of the following is an example of non-acceptance?

Responding with 'I'll think about it' Signup and view all the answers

What characterizes an effective acceptance of an offer?

The acceptance aligns with the method specified by the offeror Signup and view all the answers

If acceptance occurs via telex, when is the contract formed?

When the telex is received Signup and view all the answers

Which of the following actions is NOT considered valid acceptance?

Ignoring the offer completely Signup and view all the answers

Study Notes

Acceptance in Contract Law

Acceptance refers to the agreement to the terms proposed in an offer.
It can be expressed verbally, in writing, or through actions that confirm agreement.
Valid acceptance requires clear communication to the offeror.

Rules of Acceptance

Acceptance must be unequivocal and free of conditions or modifications.
Adhere to any prescribed method of acceptance specified by the offeror.
An expression of indecision, such as "I'll think about it," is not deemed valid acceptance.

Inferred Acceptance

Acceptance can sometimes be inferred from actions rather than explicit agreement.
Courts may recognize acceptance in situations where parties continue business practices without a formal contract.

Silence as Acceptance

Generally, silence cannot be interpreted as acceptance of an offer.
A statement suggesting "If I don’t hear from you, I’ll assume agreement" does not constitute valid acceptance.

Postal Acceptance Rule

When acceptance occurs via mail, it is deemed valid at the moment of posting, rather than upon receipt.
This rule applies only if the offeror has not specified an alternative acceptance method.

Instant Communication Methods

Acceptance through modern communication methods (e.g., email, fax) is considered valid upon receipt.
Example: In cases of telex communication, a contract is formed where the acceptance message is received.

Description

This quiz covers the key concepts of acceptance in contract law from Week 3's lecture. Understand the rules surrounding how acceptance must be communicated and the importance of clarity in agreeing to terms. Test your knowledge on the different methods and conditions of acceptance.