Term
| What six events generally terminate an offeree's power of acceptance? |
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Definition
| (1) offeror's or offeree's death or legal incapacity; (2) offeror's revocation; (3) lapse of time; (4) offeree's rejection; (5) offeree's counteroffer; and (6) the non-occurrence of any condition of acceptance under the offer's terms. |
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Term
| Mulitple choice: The offeror's death or legal incapacity terminates the offeree's power of acceptance at what point: (a) when the offeree learns of the death or incapacity; (b) when the offeree has reason to know of the death or incapacity; or (c) immediately upon the offeror's death or legal incapacity. |
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Definition
| (c) Immediately upon the offeror's death or legal incapacity. |
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Term
| At what point does a revocation terminate the power of acceptance? |
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Definition
| Upon the offeree's receipt of the revocation. |
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Term
| What is the difference between a direct revocation and an indirect revocation? |
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Definition
| A direct revocation is when the offeree receives from the offeror or the offeror's agent a manifesation of intention not to enter into the proposed agreement, and an indirect revocation is when the offeror takes definite action inconsistent with an intention to enter into the proposed agreement and the offeree acquires reliable information to that effect from someone other than the offeror. |
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Term
| What is the Rule of Dickinson v. Dodds? |
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Definition
| In general, an offeror can revoke an offer at any time prior to the effective time of acceptance, and an offeror's promise to keep an offer open is unenforceable unless there is a basis for making such a promise binding. |
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Term
| When is revocation of a general offer effective? |
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Definition
| The offeree's power of acceptance is terminated when a notice of termination is given publicity by advertisement or other general notification equal to that given to the offer and no better means of notification is reasonably available. |
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Term
| If an offeror, after making an offer but before acceptance, becomes insane, is the offeree's power of acceptance terminated? |
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Definition
| If the offeree is or should have been aware of the insanity. |
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Term
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Definition
| A withdrawal of an offer by the offeror. |
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Term
| Whether a communication is a revocation is based on what test? |
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Definition
| The objective theory of contract. |
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Term
| When is a revocation considered received by an offeree? |
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Definition
| When it (1) comes into possession of the offeror; (2) is received by a person authorized by the offeree to receive it; or (3) is deposited in a place authorized by the offeree to be deposited or similar communications to be deposited. |
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Term
| Can a revocation be effective even if the offeree is not aware of the revocation? |
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Definition
| Yes, as long as it is considered "received." |
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Term
| Must a revocation be communicated in the same manner in which the offer was made? |
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Definition
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Term
| What are two exceptions to the general rule that a revocation is not effective unless received by the offeree? |
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Definition
| (1) Offeror reserves the power to revoke the offer without notice, either in the offer or by subsequent communication; and (2) revocation of a general offer. |
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Term
| Assuming the dispatch rule applies and a notice of acceptance is dispatched, will an earlier dispatched revocation that reaches the offeree after the acceptance is dispatched terminate the power of acceptance? |
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Definition
| No. The acceptance is effective upon dispatch while the revocation is only effective upon receipt. |
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