1. Acceptance – Termination/Revocation
Contract Formation
Acceptance – Termination/Revocation
Revocation (express or implied by actions/facts) by offeror.
Non-occurrence of a required pre-condition (e.g. “I offer to sell only if I get that new job next week”).
Lapse of time (as stated, or reasonable time if not specifically stated).
Rejection (if offeree conveys, for example, “I will not buy that”).
Counter – offer (turns former offeree into the new offeror).
Death or incapacity of either party terminates an offer – does not bind either’s estate.
Mailbox Rule: acceptance effective on dispatch, but not for option contracts or if receipt of acceptance is required by the offer, as well some strange complications where offeree sends acceptance first but then fires off a rejection – which did offeror get)first?
Common law option contracts and U.C.C. firm offers prevent revocation – and unlike common law options, firm offer does not need distinct consideration.
For unilateral contracts, beginning performance (not mere preparation) creates option giving reasonable time to finish – cannot revoke.
By now, understanding of hybrid or mixed contracts that are part sale of goods and part common law services – the predominance test used in Florida and other states – as wel; that a minority applies respective law to that part of a contract that coincides with it (good or service).
Death or incapacity automatically revokes offer, but would not so operate for a formed contract – a person’s estate (through legal guardian or trustee) would be bound after either.
© 2018 Paul J. Carrier, Paul J Carrier, LLC Blue – Category Recognition; White – Specific Category; Yellow – “Black Letter” Rules (to be memorized); Green – Main Factual Issues – Analysis; Red – Upper-Level, Integrated Comprehension