Quick contracts question Forum

[pifhib2]

Is an acceptance of a firm offer effective on dispatch or on receipt (like an option)?

Thanks.

[Extension_Cord]

Is an acceptance of a firm offer effective on dispatch or on receipt (like an option)?

Thanks.

y

[pifhib2]

In hindsight, my title is a lie. I fixed it.

[Extension_Cord]

Is an acceptance of a firm offer effective on dispatch or on receipt (like an option)?

Thanks.

In CL w/ option K's, its effective on receipt. UCC most likely has the same rule, not sure though.

[orm518]

Short answer: We learned that under §2-205, the acceptance is effective upon receipt by the offeror. Same as a c/l option contract.

The offeror must receive the acceptance before the time stated, or if no time stated a reasonable period not to exceed three months. Note, if the offeree does pay some consideration (which 2-205 doesn't require) the offer is firm until what ever date is stated on it, even if it exceeds 3 months.

[kalvano]

OP didn't specify UCC or common law.

[orm518]

OP didn't specify UCC or common law.

Oh, well he used the term "firm offer" which is UCC terminology, so I just went off on that.

So, under c/l without consideration there is no such thing as a firm offer. I can say I'll hold an offer to buy my car open until Jan. 1st, but without consideration I can revoke at any time by telling you (or if you hear it from a reliable third party). Under c/l with consideration, then the offer is then firm.

See, Dickinson v. Dodds. It's an English case, but good c/l.

EITHER WAY, acceptance is effective upon receipt by the offeror and must be within the stated option period. This is basically the opposite of the Mailbox Rule (where acceptance effective upon posting of the acceptance document).

God help me if you want to talk emails/faxes.

edit: clarity