Acceptance

Acceptance

Acceptance is the

Ø Voluntary act (expressed or implied),

Ø by the Offeree that,

Ø shows assent (agreement),

Ø To the terms of an offer.

“Mirror Image” Rule.

Silence as Acceptance

Acceptance of Services by Silence.

Ø Sometimes Offeree has a duty to speak.

Prior Dealings and Acceptance.

Ø Silence can be acceptance if there are prior dealings.

Solicited Offers.

Ø  Offeree has a duty to reject.

Mode and Timeliness of Acceptance

Mail Box Rule - Acceptance becomes effective on dispatch, providing that authorized means of communication is used. Offeree accepts by using the stipulated means of acceptance.

Ø Offeror specifies (expressly or impliedly) how acceptance should be made.

Ø Effective when dispatched (mailed, shipped).

Means of Acceptance

Exceptions:

Ø If acceptance is not properly dispatched by the Offeree.

Ø If Offeror specifies that acceptance will not be effective until it is received.

Ø If acceptance is sent after rejection, whichever is received first is given effect.

Unauthorized Means of Acceptance.

Ø Not effective until it is received by the Offeror. If timely sent and dispatched it is considered to have been effective on its dispatch.

Case 10.3:  Osprey LLC v. Kelly-Moore Paint Company (1999).

Technology and Acceptance

Traditional rules provide framework for digital age.

But traditional rules may not apply to acceptances via Fed Ex, email, or fax.

Generally, ‘mailbox rule’ does not apply to online offers.