Contract Law: Why Silence Never Says Yes
How promises become binding deals, what makes them fall apart, and what the law does when someone breaks their word.
Try 3 questions
1. In the common-law tradition, goods displayed in a shop with price tags are usually treated as what?
- A binding offer to anyone who walks in
- A completed sale awaiting only payment
- An invitation for customers to make offers
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Answer: An invitation for customers to make offers
The customer makes the offer at the till and the shop accepts, so a shop is not forced to sell a mispriced item; some civil-law codes treat displays as offers instead.
2. Under the UN Convention on Contracts for the International Sale of Goods (CISG), when does an acceptance become effective?
- When it reaches the offeror
- When the buyer sends it off
- When a notary records it
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Answer: When it reaches the offeror
The CISG follows the receipt rule: acceptance takes effect when it reaches the offeror, unlike the common-law 'mailbox rule' where posting is enough.
3. A buyer 'accepts' an offer but changes the delivery date. Under the traditional rule, what is this reply?
- A counteroffer that rejects the original
- A breach of contract by the buyer
- A binding acceptance of the original offer
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Answer: A counteroffer that rejects the original
The 'mirror image' rule requires acceptance to match the offer exactly; a reply with new terms kills the offer and becomes a new offer.
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