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What are the 6 ways in which an offer may be terminated (except through acceptance)?
- 1. Revocation
- 2. Death or Insanity (of either party)
- 3. Intervening illegality
- 4. Rejection (including Counter-Offer)
- 5. Lapse of Reasonable Time (depends on circumstance)
- 6. Destruction of Subject Matter
RED TIRED (mnemonic)
In whom does the power of acceptance rest?
Only the person(s) to whom the offer is addressed, even if the offer does not call for personal performance on the offeree's part.
There are three ways of acceptance under the UCC. What are they?
According to UCC 2-206, buyer can:
- 1. After a reasonable opportunity to inspect, manifest to seller that goods conform OR are acceptable in spite of non-conformance;
- 2. Fail to reject within a reasonable time,
- 3. Act inconsistently with seller's ownership
If posted properly, by acceptable means, when is an acceptance effective?
The moment it is posted. Deposited Acceptance (Mailbox Rule). Even if the acceptance never reaches the offeror, the deposited acceptance rule still holds.