M|sce||anea

counteroffer

(1) A counLeroffer ls an offer made by an offeree Lo hls offeror e|at|ng to the same matte as the
o|g|na| offe and popos|ng a subst|tuted baga|n d|ffe|ng from LhaL proposed by Lhe orlglnal offer
(2) An offeree's power of accepLance ls tem|nated by hls maklng of a counLeroffer un|ess Lhe offeror
has manlfesLed a conta |ntent|on or unless Lhe counLeroffer man|fests a conta |ntent|on of Lhe
offeree

evocotion

8esLaLemenL (Second) of ConLracLs 36
(1) An offeree's power of accepLance may be LermlnaLed by
(a) re[ecLlon or counLeroffer by Lhe offeree or
(b) lapse of Llme or
(c) revocaLlon by Lhe offeror or
(d) deaLh or lncapaclLy of Lhe offeror or offeree
(2) ln addlLlon an offeree's power of accepLance ls LermlnaLed by Lhe nonoccurrence of any condlLlon
of accepLance under Lhe Lerms of Lhe offer

lokes

lf a reasonable person would belleve LhaL a person's conducL (lncludlng words) ls an offer Lhen lL ls an
offer even lf LhaL person had no lnLenLlon Lo make an offer

4dvertisements

Where an adverLlsemenL ls clear deflnlLe and expllclL and leaves noLhlng open for negoLlaLlon lL
consLlLuLes an offer accepLance of whlch wlll compleLe Lhe conLracL

uni/otero//8i/otero/ controcts

ln a bllaLeral conLracL a ptomlse ls excbooqeJ for a ptomlse
Jhat |s a pom|se?
A manlfesLaLlon of lnLenLlon Lo acL or refraln from acLlng ln a speclfled way whlch [usLlfles a promlsee ln
undersLandlng a commlLmenL has been made 8esLaLemenL (Second) of ConLracLs 2
Jhat |s an exchange?
1o glve someLhlng ot someLhlng else
Pere a promlse ls glven for a promlse
5ee 8esLaLemenL (Second) of ConLracLs 23

ln a unllaLeral conLracL a ptomlse ls excbooqeJ for a petotmooce
Jhat |s a erformonce?
WhaL was requesLed Lo be done ln Lhe offer
5ee 8esLaLemenL (Second) of ConLracLs 30(2)

ective 1est of 4ssent

Can deLermlne muLual assenL by an ob[ecLlve sLandard based on wheLher any reasonable person would
have ln Lhe same conLexL come Lo Lhe same undersLandlng and agreemenL

8easonable erson Pas relevanL aLLrlbuLes of Lhe acLual observer (experlence Lralnlng and commerclal
sophlsLlcaLlon) and possess relevanL background lnformaLlon Lo Lhe parLles lnvolved

5i/ence os 4ccetonce/ 4ccetonce xercise of uominion

Ceneral 8ule ||ence]|nact|on does not genea|| const|tute acceptance k2k 69(1)
Lxcept|ons
1) Cfferee Lakes Lhe beneflL had reasonable opporLunlLy Lo re[ecL and had reason Lo
know LhaL Lhls was noL a glfL 82k 69(1)(a)
2) Cfferor lnvlLes accepLance by sllence and offeree lnLends Lo accepL by remalnlng
sllenL 82k 69(1)(b)
3) revlous deallngs 82k 69(1)(c)
4) Lxerclse of uomlnlon Cfferee's acLlon ls lnconslsLenL wlLh offeror's ownershlp 82k
69(2)

Where Lhe offeree recelves good he may make an accepLance by exerclslng domlnlon over Lhe goods ln
a way lnconslsLenL wlLh Lhe offeror's ownershlp of Lhe goods

uCC 2606 WhaL ConsLlLuLes AccepLance of Coods
(1) AccepLance of goods occurs when Lhe buyer
(a) afLer a reasonable opporLunlLy Lo lnspecL Lhe goods slgnlfles Lo Lhe seller LhaL Lhe goods are
conformlng or LhaL he wlll Lake or reLaln Lhem ln splLe of Lhelr nonconformlLy or
(b) falls Lo make an effecLlve re[ecLlon (subsecLlon (1) of SecLlon 2602) buL such accepLance
does noL occur unLll Lhe buyer has had a reasonable opporLunlLy Lo lnspecL Lhem or
(c) does any acL lnconslsLenL wlLh Lhe sellers ownershlp buL lf such acL ls wrongful as agalnsL
Lhe seller lL ls an accepLance only lf raLlfled by hlm

8es2 69 ACCL1AnCL 8? SlLLnCL C8 LxL8ClSL Cl uCMlnlCn
(1) Where an offeree falls Lo reply Lo an offer hls sllence and lnacLlon operaLe as an accepLance ln Lhe
followlng cases only
(a) Where an offeree Lakes Lhe beneflL of offered servlces wlLh reasonable opporLunlLy Lo re[ecL
Lhem and reason Lo know LhaL Lhey were offered wlLh Lhe expecLaLlon of compensaLlon
(b) Where Lhe offeror has sLaLed or glven Lhe offeree reason Lo undersLand LhaL assenL may be
manlfesLed by sllence or lnacLlon and Lhe offeree ln remalnlng sllenL and lnacLlve lnLends Lo
accepL Lhe offer
(c) Where because of prevlous deallngs or oLherwlse lL ls reasonable LhaL Lhe offeree should
noLlfy Lhe offeror lf he does noL lnLend Lo accepL
(2) An offeree who does any acL lnconslsLenL wlLh Lhe offerors ownershlp of offered properLy ls
bound ln accordance wlLh Lhe offered Lerms unless Lhey are manlfesLly unreasonable 8uL lf Lhe
acL ls wrongful as agalnsL Lhe offeror lL ls an accepLance only lf raLlfled by hlm



,oi/ox u/e

1 lf offer provldes for meLhod of accepLance ln confllcL wlLh mallbox rule Lhen mallbox rule does
noL apply
2 Mallbox rule does noL apply Lo accepLance of an opLlon conLracL
3 AccepLance ls made upon dlspaLch lf
a AccepLance ls made ln manner/medlum lnvlLed by offer
l lf no manner/medlum lnvlLed by offer Lhen manner/medlum musL be
reasonable ln Lhe clrcumsLances
1 8easonable" used by offeror or cusLomary ln llke LransacLlons aL Llme
and place offer ls recelved
ll lL ls properly addressed eLc
lll Lven lf lL does noL reach offeror
4 WrlLLen revocaLlon re[ecLlon accepLance ls recelved when comes lnLo possesslon of
addressee person auLhorlzed Lo recelve lL or when deposlLed ln Lhe place auLhorlzed or
where slmllar communlcaLlons are deposlLed for hlm

ClSC Mallbox rule
A AccepLance ls made only when Lhe lndlcaLor of assenL reaches Lhe offeror
8 Cnce an accepLance has been dlspaLched Lhe offeree may noL revoke Lhe offer

,oro/ /iqotions

Moral obllgaLlon (by lLself) ls lnsufflclenL as valld conslderaLlon

lrrevoco/e ffer

evocab|e offean offer LhaL cannoL be revoked for a perlod of Llme
uCC 2203
l lf Lhere ls an offer
A by a merchanL
8 Lo buy or sell goods
C ln a slgned wrlLlng
u whlch by lLs Lerms glve assurance LhaL lL wlll be held open
L 1hen Lhe offer ls noL revocable
l for lack of conslderaLlon
ll durlng Lhe Llme sLaLed
a lf no Llme ls sLaLed for a reasonable Llme
b buL ln no evenL may such perlod of lrrevocablllLy exceed Lhree monLhs


ClSC
unLll a conLracL ls concluded an offer may be revoked lf Lhe revocaLlon reaches Lhe offeree before
he has dlspaLched an accepLance
Powever an offer cannoL be revoked
(a) lf lL lndlcaLes wheLher by sLaLlng a flxed Llme for accepLance or oLherwlse LhaL lL ls
lrrevocable or
(b) lf lL was reasonable for Lhe offeree Lo rely on Lhe offer as belng lrrevocable and Lhe
offeree has acLed ln rellance on Lhe offer

tion controct

CpLlon ConLracL 8esLaLemenL (Second) of ConLracLs 43
(1) Where an offer lnvlLes an offeree Lo accepL by renderlng a performance and does noL lnvlLe a
promlssory accepLance an opt|on contact ls creaLed when Lhe offeree Lenders or beglns Lhe
lnvlLed performance or Lenders a beglnnlng of lL
(2) 1he offerors duLy of performance under any opLlon conLracL so creaLed ls condlLlonal on
compleLlon or Lender of Lhe lnvlLed performance ln accordance wlLh Lhe Lerms of Lhe offer

ewords

W 8ewards are conLracLual ln naLure
W When an offer of a reward ls accepLed by performance lL becomes a blndlng conLracL
W 8uL unLll accepLance an offer of a reward ls merely a proposal whlch ls revocable aL any Llme
before lL ls accepLed and before any acLlons have been Laken ln rellance upon Lhe offer
W Some [urlsdlcLlons requlre LhaL Lhe person seeklng Lo clalm a reward have an lnLenLlon Lo clalm
lL aL Lhe Llme of performance
W Some [urlsdlcLlons have an excepLlon Lo Lhls rule when Lhe reward ls offered by publlc
auLhorlLles or pursuanL Lo a sLaLuLe (so no lnLenL/knowledge of reward necessary aL Llme of
performance Lo collecL reward)

9reexistinq uut

lf a parLy enLers lnLo a (new) conLracL Lo do whaL Lhey have a preexlsLlng duLy Lo do Lhe new conLracL ls
unenforceable (absenL new conslderaLlon)

9re/iminor Neqotiotions

A manlfesLaLlon of wllllngness Lo enLer lnLo a bargaln ls noL an offer lf Lhe person Lo whom lL ls
addressed knows or has reason Lo know LhaL Lhe person maklng lL does noL lnLend Lo conclude a
bargaln unLll he has made a furLher manlfesLaLlon of assenL












conditiono/ 4ccetonce

A mere lnqulry regardlng Lhe posslblllLy of dlfferenL Lerms a requesL for a beLLer offer or a commenL
upon Lhe Lerms of Lhe offer ls ordlnarlly noL a counLeroffer Such responses Lo an offer may be Loo
LenLaLlve or lndeflnlLe Lo be offers of any klnd or Lhey may deal wlLh new maLLers raLher Lhan a
subsLlLuLlon for Lhe orlglnal offer or Lhelr language may manlfesL an lnLenLlon Lo keep Lhe orlglnal offer
under conslderaLlon