Sell me this and sell me that, in today’s paperbacked commercial world, words are just not enough.
There are several scenarios where a contract may be terminated or revoked in common law. Basically for every contract, except for contracts involving the sale of goods; items movable at the time of sale.
Here are some ways of terminating a contract:
1. Rejection – This happens when the offeror terminates the contract by: express words, counter offer, conditional acceptance, or additional terms. However, a counter offer can still be considered an offer if the counter offer ends in a question. This is not to be confused with bargaining. Moreover, you can tell when there is a conditional acceptance when you hear these words: if, only if, provided, so long as, but, on condition that. Lastly, changing the terms of the offer will terminate it the offer. The additional term kills the offer.
2. Revocation – When the offeror unambiguously terminates the offer. It must be done before the offeree accepts the terms and the offeree is notified of the revocation.
3. Death or insanity of either party can terminate a contract.
4. Lapse of Time – If there is a particular due date set for accepting a contract, the offeror has the right to terminate the contract if the requirement is not met.
5. Destruction of the subject matter can also cause a termination of a contract.
6. Supervening Illegality – This is when the subject matter in the contract becomes illegal.
7. Terms – The contract may be terminated if the other party does not cooperate with the terms of the contract. Whatever the offeror says, goes. However, if the offer is rejected, the offeror may restate the same offer and create a new power of acceptance.
This was just a slight overview on contract terminations/revocations. For more information contact us at: 310.943.1171.
Click here for more details on Business Law.
There are several scenarios where a contract may be terminated or revoked in common law. Basically for every contract, except for contracts involving the sale of goods; items movable at the time of sale.
Here are some ways of terminating a contract:
1. Rejection – This happens when the offeror terminates the contract by: express words, counter offer, conditional acceptance, or additional terms. However, a counter offer can still be considered an offer if the counter offer ends in a question. This is not to be confused with bargaining. Moreover, you can tell when there is a conditional acceptance when you hear these words: if, only if, provided, so long as, but, on condition that. Lastly, changing the terms of the offer will terminate it the offer. The additional term kills the offer.
2. Revocation – When the offeror unambiguously terminates the offer. It must be done before the offeree accepts the terms and the offeree is notified of the revocation.
3. Death or insanity of either party can terminate a contract.
4. Lapse of Time – If there is a particular due date set for accepting a contract, the offeror has the right to terminate the contract if the requirement is not met.
5. Destruction of the subject matter can also cause a termination of a contract.
6. Supervening Illegality – This is when the subject matter in the contract becomes illegal.
7. Terms – The contract may be terminated if the other party does not cooperate with the terms of the contract. Whatever the offeror says, goes. However, if the offer is rejected, the offeror may restate the same offer and create a new power of acceptance.
This was just a slight overview on contract terminations/revocations. For more information contact us at: 310.943.1171.
Click here for more details on Business Law.
