Question

In: Economics

how are different or additional terms in an offer and acceptance treated? explain your answer

how are different or additional terms in an offer and acceptance treated? explain your answer

Solutions

Expert Solution

Traditional “Mirror Image” Rule
The traditional contract law rule is that an acceptance must be the mirror image of the offer. Attempts by offerees to change the terms of the offer or to add new terms to it are treated as counteroffers because they impliedly indicated an intent by the offeree to reject the offer instead of being bound by its terms. However, recent years have witnessed a judicial tendency to apply the mirror image rule in more liberal fashion by holding that only material (important) variances between an offer and a purported acceptance result in
an implied rejection of the offer.
Even under the mirror image rule, no rejection is implied if an offereee merely asks about the terms of the offer without indicating its rejection (an inquiry regarding terms), or accepts the offer’s terms while complaining about them (a grumbling acceptance). Distinguishing among a counteroffer, an inquiry regarding terms, and a grumbling acceptance is often a difficult task.


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