Part 3- Contracts, Chapter 11: The Agreement Acceptance, Doc 5

The text focuses on contract issues such as clickwrap agreements, reward offers, resignation acceptance, and the application of the mailbox rule in several hypothetical cases. Key Case Summaries and Principles 1. Clickwrap Agreements and Arbitration Clauses (Netscape Case) o Background: Netscape’s free SmartDownload software included a license agreement accessible through a link on the download page. Users were not required to click to accept the terms, which included an arbitration clause. When users sued over privacy concerns, Netscape argued the arbitration clause should be enforced. o Key Issue: Whether passive assent (downloading without explicitly clicking to accept) binds users to terms they didn’t directly acknowledge. o Legal Principle: Courts generally require clear assent to clickwrap agreements. When terms are hidden or users are not prompted to affirmatively agree, enforceability may be contested. 2. Reward Offers and Conditions for Acceptance (LCS Case) o Background: Crime Stoppers offered a reward for information leading to the arrest and indictment of the South Louisiana Serial Killer, specifying conditions for eligibility, including the use of specific tip lines. Alexander provided information indirectly leading to the suspect’s capture but didn’t use the designated hotline. o Legal Principle: For reward contracts, acceptance generally requires strict compliance with offer terms. Because Alexander didn’t follow the specified method, she may not have accepted the offer as required. 3. Mailbox Rule and Resignation Acceptance (Cantu Case) o Background: Cantu submitted her resignation, then attempted to retract it before the school district’s acceptance letter, though it had already been mailed. o Legal Principle: Under the mailbox rule, an acceptance is effective when properly dispatched, even if the other party has yet to receive it. Cantu’s resignation was therefore binding once the district mailed the acceptance letter. 4. Ambiguities in Acceptance and Changes to Contract Terms (Montgomery Case) o Background: English offered to purchase Montgomery’s house, and they negotiated contract terms by exchanging modifications. However, English only partially accepted the Montgomerys’ counteroffer, leaving some terms unaddressed. o Legal Principle: A contract typically requires agreement on all essential terms. Incomplete acceptance can prevent contract formation, as was the case here, where English’s partial modifications did not indicate full agreement. 5. Payment and Mailbox Rule in Distributorship Agreement (Domanik Case) o Background: Domanik attempted to satisfy a payment deadline by mailing a check, which was received late. Domanik argued that mailing constituted timely payment. o Legal Principle: The mailbox rule generally does not apply to payments in default situations unless explicitly agreed upon. Timely receipt is typically required for payments, meaning Domanik’s payment did not meet the deadline. Special Topics    Acceptance in Unilateral Contracts: Reward offers are unilateral contracts that require performance, often according to specified conditions. Clickwrap and Browsewrap Agreements: Clear notice and affirmative acceptance (e.g., clicking “I agree”) are crucial for enforceability. Mailbox Rule Limitations: While the mailbox rule supports timely dispatch for acceptance, it may not apply in payment deadlines or cases where explicit conditions require receipt by a certain date. Each scenario emphasizes the need for clear communication and compliance with specified terms in contract formation and enforcement, particularly concerning online agreements, reward offers, and payment deadlines.