Term
| What are the elements of an acceptance? |
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Definition
| (1) Manifestation of assent (2) by an offeree (subject to limited exceptions); (3) to the terms of the offer; (4) made in a manner invited or required by the offer; (5) while the offeree still has the power of acceptance. |
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Term
| What is the rule regarding manifesting assent to an unknown offer? |
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Definition
| As a general rule, an offeree can only manifest assent if she knows of the offer, but it is possible to manifest assent to an offer of a bilateral contract without knowledge of it. But except for an offer of a government reward, an offeree cannot accept an offer of a unilateral contract unless the offeree actually knows of the offer prior to completing the act or acts necessary to accept. |
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Term
| What is the rule regarding cross offers? |
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Definition
| When parties make cross offers, there is no contract unless one accepts the other's offer upon delivery. |
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Term
| What is the duty-to-read rule? |
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Definition
| An offeree's failure to read the terms of a written offer does not prevent the offeree's manifestation of assent from being effective, unless the offeree did not know and did not have reason to know that the document is a proposed contract or its essential terms. |
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Term
| What is the "grumbling acceptance" rule? |
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Definition
| An offeree's manifestation of dissatisfaction with an offer does not prevent the offeree's manifestation of assent from being effective. |
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Term
| What theory is applied to determine if an offeree manifested assent? |
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Definition
| Objective theory of contract. |
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Term
| What is an example of when an offeree does not have reason to know the essential terms of an offer? |
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Definition
| Fraud in the execution (also called "fraud in the factum") |
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