1. Contract Law: Acceptance Objective 3.01 Understand requirements of each element of a contract

2. Acceptance Occurs when a party to whom an offer has been made agrees to the proposal. To create an enforceable contract, the acceptance must: 1. Come from the person or persons to whom the offer was made 2. Match the terms in the offer 3. Be communicated to the offeror

3. Requirements of Acceptance  Unconditional Acceptance Mirror Image Rule  Acceptance must “mirror” offer  Any change means there is no acceptance Counteroffer  Offeree makes an offer  Offeror becomes offeree

4. Methods to Communicate Acceptance  Silence as Acceptance  Bilateral Acceptance  Unilateral Acceptance

5. Methods of Acceptance  Contract accepted when sent, if same method of communication used  Contract accepted when received, if different method of communication is used  If method is stated in offer, it MUST be used  Action=Acceptance  Silence cannot be a method of acceptance

6. Example of Acceptance

8. Termination of Offer  Revocation – Taking back of an offer by offeror  Rejection – Refusal by the offeree  Counteroffer – Any change in the terms of the offer  Expiration of Time – If the offer puts a time limit on the offer and it has passed  Death – Offeror dies  Insanity – Offeror is declared insane