Termination of Offers
A. Lapse of time
1. Lapse of time stated or reasonable time
B. Revocation of an Offer – words or conduct of the offeror
1. How?
a. Unambiguous statement by offeror to offeree of unwillingness/inability to contract
b. Unabambiguous conduct by offeror indicating an unwillingness or inability to contract that the offeree is aware of
2. When effective?
a. Receipt rule for mailed revocations
b. Cannot be revoked after acceptance
3. Offers that cannot be revoked – four different situationsf
a. Cannot be revoked if:
i. Promise to keep offer open, and
ii. the promise is supported by consideration
b. UCC only – cannot be revoked for up to three months if:
i. It is an offer to buy or sell goods
ii. signed, written promise to keep the offer open, and
iii. offeror is a merchant
c. Cannot be revoked if detrimental reliance that was reasonably foreseeable
d. The start of performance pursuant to an offer to enter into a unilateral contract makes that offer irrevocable for a reasonable time to complete performance
i. Mere preparation is not the start of performance
C. Words or Conduct of the Offeree
1. Counteroffer
a. Counteroffers terminate the offer and become a new offer
i. Bargaining does not terminate the original offer
2. Conditional acceptance
a. Terminates the offer and becomes a new offer
i. Key phrases – “if”, “provided”, “so long as”, and “on condition that”
3. ADDITIONAL TERMS
a. COMMON LAW – MIRROR IMAGE RULE
b. UCC – REJECTS MIRROR IMATE RULE
i. Response that adds terms is an acceptance if not expressly conditioned
ii. Between merchants – the new terms are incorporated unless:
a. It materially changes the offer, or
b. The offeror objects to the change
iii. One/both parties are not merchants – the new terms are NOT incorporated unless they are separately accepted
D. Death of a party prior to acceptance
1. General rule – death or incapacity of either party terminates the offer
2. Exceptions
a. Options
b. Part performance in a unilateral contract
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