Acceptance 1. Read the case Olsen v Johnston (Links to an external site.)2. Watch the youtube video on acceptance in contracts (Links to an external site.)and this video (Links to an external site.)3. Explain the following statements in your own words (paraphrase and do not copy from the case):1. To form a legally enforceable contract, there must be (1) identifiable parties capable of contracting; (2) their consent; (3) a lawful object; and (4) a sufficient cause or consideration. The parties’ consent must be free, mutual, and communicated by each to the other. Consent is not determined by the subjective, undisclosed intent of the parties2. Johnston argues that her offer required Olsen to reply to Townsend. Johnston contends that Olsen rejected the terms of her offer when she replied directly to Johnston. Johnston argues that Olsen instead presented a counteroffer when Olsen replied directly to Johnston. Johnston denies having accepted Olsen’s counteroffer. Thus she contends that the parties formed no enforceable contract3. “Johnston did not make clear through her words and associated conduct that a reply to Townsend represented the exclusive permissible mode of acceptance. Johnston consequently did not create a condition precedent to Olsen’s acceptance. The parties’ mutual consent was completed therefore when Olsen accepted Johnston’s offer in a reasonable manner. The offer and acceptance satisfied the three other essential elements of a contract. The parties had capacity to contract, the agreement had a lawful object — the sale of the property, and the agreement called for the exchange of sufficient consideration.”4. Who won the case and whyRemember use your own words, restate the statement numbering your responses.




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