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Does a Credit Card Charge Constitute Acceptance of a Contract?

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    Definition of Acceptance

    • The law defines an acceptance as a demonstration of agreement to the conditions of an offer in the way that the offer requires. The person defined as having the power to accept the offer is called the "offeree." The offeree's acceptance of the offer is one of the requirements necessary for creation of a contract. If the other requirements of the contract are satisfied, then a contract is formed.

    Unequivocal Acceptance/Common Law

    • An offeree's inclusion of additional or different terms in his acceptance to the offer turns the acceptance into something else at common law. Common law considers any acceptance of an offer that includes additional terms as not an acceptance but a counteroffer. Thus if a person had been given an offer by another to paint his house for $10,000, if he paid with his credit card it would not constitute an acceptance if he paid with his credit card and insisted that there is no acceptance unless the painter, in addition to painting the house, also agreed to paint the offeree's car. It also considers any acceptance of an offer that includes different terms as not an acceptance but a rejection of the offer. Thus if in the above example the painter insisted on payment by cash but the offeree insisted on paying by credit card and had gotten hold of the painter's credit card machine to pay by credit, then there would be no acceptance.

    Grumbling Acceptance

    • Common law permits an acceptance to occur even when it is accompanied by words expressing dissatisfaction with the offer. Thus if a man had offered to paint a woman's car for $500 payable by credit or check there would still be an acceptance even if the woman had complained about the paint job while she handed over her credit card to be charged.

    Unequivocal Acceptance/UCC

    • An offeree's insistence on additional or different terms in his acceptance to the offer does not necessarily turn the acceptance into something else under the Uniform Commercial Code (UCC). The UCC governs all contracts for the sale of goods. The law considers a good to be any movable object. For example, a contract for the sale and purchase of a car would be considered a contract for the sale of a good governed by the UCC. The UCC considers any acceptance of an offer that includes additional or different terms as an acceptance unless the acceptance is made "expressly conditional on acceptance to the additional or different terms." For example, let's say a man had been offered a car for $10,000 if he paid by check. In this situation there would be an acceptance if he instead paid the amount by credit card but never stated that he would refuse acceptance of the car if he didn't pay by credit. But if the man had insisted on paying by credit card, then the credit charge would not constitute an acceptance.

    Agent

    • Contract law generally prohibits acceptance of offers made by an agent or any third person of the offeree on behalf of the offeree. The power of acceptance lies only with the offeree and no one else may accept an offer on his behalf. Thus if a person was offered a car in exchange for a $1,000 payment by credit card, there is no acceptance by the offeree if he directed his son to buy the car with the son's own credit card.

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