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Notice to Seller of Acceptance of Offer by Proposing Additional Terms

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US-02371BG
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Description

Unless it is expressly specified that an offer to buy or sell goods must be accepted just as made, the offeree may accept an offer and at the same time propose an additional term. This is contrary to general contract law. Under general contract law, the proposed additional term would be considered a counteroffer and the original offered would be rejected. Under Article 2 of the Uniform Commercial Code, the new term does not reject the original offer. A contract arises on the terms of the original offer, and the new term is a counteroffer. The new term does not become binding until accepted by the original offeror. If, however, the offer states that it must be accepted exactly as made, the ordinary contract law rules apply.


In a transaction between merchants, the additional term becomes part of the contract if that term does not materially alter the offer and no objection is made to it. However, if such an additional term from the seller operates solely to the sellers advantage, it is a material term and must be accepted by the buyer to be effective.

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FAQ

The Indian Contract Act 1872 defines acceptance in Section 2 (b) as When the person to whom the proposal is made signifies his assent thereto, the offer is said to be accepted. Thus the proposal when accepted becomes a promise. An offer can be revoked before it is accepted.

Revocation means "cancellation". Revocation of an offer means its withdrawal by the offeror.Section 5 lays down "a proposal may be revoked at any time before the communication of its acceptance as against the proposer". An offer is made irrevocable by acceptance. Revocation may be express or implied.

"Although this will cause some pushback and sometimes isn't looked at as the most ethical, a seller can legally still accept any other offer up until attorney review conclude as the deal isn't officially under contract." For the most part, though, buyers more commonly back out of contracts rather than sellers.

An Offer to Purchase Real Estate (the "Offer") is a document that sets out the basic proposed terms and conditions between the Buyer and the Seller in a real estate transaction. Once the Offer is signed by the Buyer and the Seller, and the contained contingencies are met, it then becomes a legally binding agreement.

Generally, a simple price quote is not an offer.If a person rejects an offer, it is considered terminated. Likewise, if the recipient of an offer changes its terms, the original offer is terminated and a new offer is created. This new offer is called a counteroffer, and the original offerer may accept it.

The acceptance must be communicated. The offer must be accepted without modifications, otherwise it is a counter-offer. Until an offer is accepted it may be revoked. Only the person to whom the offer is made can accept. Acceptance will be judged by an objective standard.

When a people make the offer, if it is accepted by an offeree, then will result in a legally enforceable contract. Section 2(b) of said Act state that 'when the person to whom the proposal is made signifies his assent thereto, the proposal is said to have been accepted'.

The Indian Contract Act 1872 defines acceptance in Section 2 (b) as When the person to whom the proposal is made signifies his assent thereto, the offer is said to be accepted. Thus the proposal when accepted becomes a promise. An offer can be revoked before it is accepted.

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Notice to Seller of Acceptance of Offer by Proposing Additional Terms