Relationship between the parties or other circumstances may justify the assumption that silence indicates assent to the proposal (Vogt - v. Madden sharecrop agreement) Option Contracts: Agreement to make an offer irrevocable Option K’s: power of acceptance isn’t terminated by rejection, counter-offer, revocation, or death of offeror unless requirements are met for discharge of K duty §25 Option Contracts: an option contract is a promise meets the requirements for the formation of a contract and limits the promisor’s power to revoke an offer (Ks without consideration) §87 Option Contract: An offer is binding as an option contract if it Is in writing and signed by offeror, recites a purported consideration for making of offer, and proposes an exchange on fair terms within a reasonable time (need consideration for offer itself, nominal consideration is sufficient); or Is made irrevocable by statute Can create binding K for (§45 and §50 require actual preparing to perform performance), must actually have an rather than just a promise Where offeror makes offer which has not yet been accepted, if offeree has suffered a detriment prior to acceptance, can still be entitled to damages - same elements as §90(1) §45 Option Contract Created by Part Performance of Tender: Where offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders or the invited performance begins Offeror’s duty is conditioned on completion of offeree’s performance in accordance with terms Rule is intended to protect the offeree in justifiable reliance on the promise (Drennan contractor/sub-contractor bidding case) v Star Paving – §2-205 Firm Offers (4 basic requirements): an offer to buy or sell goods by a merchant that is and gives cannot be revoked before signed assurance that it will be kept open reasonable time or time given in offer, regardless of if consideration is given for the option, period not to exceed 3 months Terminating the of Acceptance General Rule: they can revoke at any time before offeror is master of their offer, acceptance (subject to limitations not the case in option Ks) – §36: Method of Termination of the Power of Acceptance Offeree’s power of acceptance may be terminated by
Relationship between the parties or other circumstances may justify the assumption that silence indicates assent to the proposal (Vogt v. Madden - sharecrop agreement) Option Contracts: Agreement to make an offer irrevocable Option K’s: power of acceptance isn’t terminated by rejection, counter-offer, revocation, or death of offeror unless requirements are met for discharge of K duty §25 Option Contracts: an option contract is a promise meets the requirements for the formation of a contract and limits the promisor’s power to revoke an offer §87 Option Contract: (Ks without consideration) An offer is binding as an option contract if it Is in writing and signed by offeror, recites a purported consideration for making of offer, and proposes an exchange on fair terms within a reasonable time (need consideration for offer itself, nominal consideration is sufficient); or Is made irrevocable by statute Can create binding K for preparing to perform (§45 and §50 require actual performance), must actually have an rather than just a promise Where offeror makes offer which has not yet been accepted, if offeree has suffered a detriment prior to acceptance, can still be entitled to damages - same elements as §90(1) §45 Option Contract Created by Part Performance of Tender: Where offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders or begins the invited performance Offeror’s duty is conditioned on completion of offeree’s performance in accordance with terms Rule is intended to protect the offeree in justifiable reliance on the promise (Drennan v Star Paving – contractor/sub-contractor bidding case) §2-205 Firm Offers (4 basic requirements): an offer by a merchant to buy or sell goods that is signed and gives assurance that it will be kept open cannot be revoked before reasonable time or time given in offer, regardless of if consideration is given for the option, period not to exceed 3 months Terminating the of Acceptance General Rule: offeror is master of their offer, they can revoke at any time before acceptance (subject to limitations – not the case in option Ks) §36: Method of Termination of the Power of Acceptance Offeree’s power of acceptance may be terminated by