Term
An offer to sell and deliver goods in thirty days in return for the promise to pay a stipulated amount upon delivery of the good, in which the offeree accepts. This is an example of:
A. Bilateral Contract
B. Unilateral Contract
C. "Inverted" Unilateral Contract |
|
Definition
|
|
Term
An offer of a reward for certain information or for the return of lost property is an example of:
A. Bilateral Contract
B. Unilateral Contract
C. "Inverted" Unilateral Contract |
|
Definition
|
|
Term
John offers the stated price to a clerk in a theater ticket office and asks for a ticket for a certain performance. The clerk can accept this offer of an act only by delivery of the requested ticket, which amounts, in effect, to the theater owner's promise to admit John to the designated performance. This is an example of:
A. Bilateral Contract
B. Unilateral Contract
C. "Inverted" Unilateral Contract |
|
Definition
| C. "Inverted" Unilateral Contract |
|
|
Term
John signs a letter containing an offer to Mary and leaves it on top of the desk in his office. Later that day, Mary, without prearrangement, goes to John's office, discovers that John is away, notices that the letter on his desk, reads it, and writes on it an acceptance, which she dates and signs it.
Is this classified as a contract?
A. Yes
B. No |
|
Definition
| B. No, because John never communicated it with Mary |
|
|
Term
Essentials of a contract include all of the following except:
A. Lapse of Time
B. Communication
C. Intent
D. Definiteness |
|
Definition
|
|
Term
For an offer to exist these have to be effective except:
A. be communicated to the offeree
B. be in writing
C. manifest an intent to enter into a contract
D. be sufficiently definite and certain. |
|
Definition
|
|
Term
Mary, after having her month-old Cadillac break down for the third time in two days, screams in disgust, "I will sell this car to anyone for $10.00!" John hears Mary and hands her a ten-dollar bill.
Is this an example of an offer?
A. Yes
B. No |
|
Definition
| B. No, because no offer can be made under obvious excitement or emotional strain. |
|
|
Term
Advertisements are not promises because of these reasons except:
A. they do not contain a promise
B. they leave unexpressed many terms that would be necessary to the making of a contract.
C. they are speaking to the general public |
|
Definition
| C. they are speaking to the general public |
|
|
Term
The auctioneer at an auction sale does not make offers to sell the property
True or False? |
|
Definition
|
|
Term
The auctioneer is free to withdraw the goods from sale unless the sale is advertised or announced to be without reserve.
True of False? |
|
Definition
|
|
Term
A contract may be formed by silent conduct.
True of False? |
|
Definition
|
|
Term
The law applies a subjective standard to mutual assent.
True of False? |
|
Definition
False
The law applies an objective standard, which is whether the intent of the parties could reasonably be understood from their words or actions. |
|
|
Term
An offer must take a particular form to have legal validity.
True or False? |
|
Definition
|
|
Term
It is insignificant in contract law whether an offer was made under obvious emotional strain.
True or False? |
|
Definition
|
|
Term
Because no real offer is made in a merchant's advertisement, the merchant is free to offer goods at one price and to then sell the goods at a higher price once demand is stimulated.
True or False? |
|
Definition
| False. A merchant usually does not make offers in advertisements. They are not sufficiently definite and certain enough and the advertisement usually does not contain promises to sell for a price. The Federal Trade Commission regulates what retailers can do, however, in their ads. Merchants are not permitted to advertise at a lower price and then raise the price to essentially trick customers into the store. |
|
|
Term
John reads an ad in the newspaper that has the following language: "Come visit our new Jaguar dealership! The first ten visitors to help us open the doors at 6:00 a.m. Wednesday morning get a new Jag for a mere $43,000!" George goes to the dealership on Wednesday morning and is one of the first ten visitors. John has:
A. made a valid unilateral contract with the dealership.
B. not made a valid contract with the dealership.
C. received only an invitation to make an offer from the dealership.
D. none of these choices. |
|
Definition
A. John has made a valid unilateral contract with the dealership.
The dealership made a valid offer. It was definite and certain, communicated, and manifested an intent to enter into a contract. George performed his part of the contract. |
|
|
Term
The ways in which an offer may be terminated include all but the following:
A. Lapse of time
B. Acceptance
C. Open terms
D. Counteroffer |
|
Definition
|
|
Term
Which of the following statements is true concerning the definiteness of an offer?
A. The offeree's terms must be clear enough to provide a court with a basis for granting a remedy.
B. Price terms may not be left open in valid offers for the sale of goods.
C. The Code is much stricter than the common law in requiring that no significant terms in the contract be omitted for the courts to consider that a valid offer has been made.
D. The terms of a contract, all of which the offer usually contains, must be reasonably certain so as to provide a court with a basis for determining the existence of a breach and for giving an appropriate remedy. |
|
Definition
| D. The terms of a contract, all of which the offer usually contains, must be reasonably certain so as to provide a court with a basis for determining the existence of a breach and for giving an appropriate remedy. |
|
|
Term
Commercial reasonableness is:
A. a standard of conduct used in the common law of contracts.
B. a term that has nothing to do with the mutual assent element of contracts in the modern era.
C. a standard of conduct used in the Code to help the courts determine the fairness of open terms in an offer.
D. a definite, unwavering standard that can be relied upon not to change. |
|
Definition
C. a standard of conduct used in the Code to help the courts determine the fairness of open terms in an offer.
Commercial reasonableness is a standard of how the reasonable business person, familiar with the customs of the industry and transactions involved, would fill in the open terms. |
|
|
Term
Georgia offered to sell her riding lawnmower to Carl. Before Carl responded, Georgia's house burned down and the mower was destroyed. Which statement is correct?
A. Carl has the option to accept or reject the offer. If Carl accepts, Georgia must find a comparable mower.
B. Carl has the option to accept or reject the offer. If Carl accepts, Georgia must give Carl the insurance money.
C. Carl cannot accept the offer. The offer is terminated by law.
D. Carl must accept the offer. This is a force majeure. |
|
Definition
| C. Carl cannot accept the offer. The offer is terminated by law. |
|
|
Term
Mary offers to sell her portable television set to John and tells John that he has ten days in which to accept. One week later, John observes the television set in Tom's house and is informed that Tom had purchased it from Mary. The next day John sends to Mary an acceptance of the offer.
Is there a contract? |
|
Definition
| No, because there is no contract, because Mary's offer was effectively revoked when John learned of Mary's inability to sell the television set to him because she had sold it to Tom. |
|
|
Term
If Mary, in return for the payment of $500 to her by John, grants John an option, exercisable at any time within thirty days, to buy Blackacre at a price of $80,000.
Can Mary revoke her offer?
Can John reject the offer? |
|
Definition
No. Mary's offer is irrevocable. Mary is legally bound to keep the offer open for thirty days, and any communication by Mary to John giving notice of withdrawal of the offer is ineffective.
Yes. John is not bound to accept the offer, but the option contract entitles him to thirty days in which to accept. |
|
|
Term
A merchant is defined as a person:
A. who is a dealer in goods of a given kind
B. who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved
C. who employs an agent or broker whom he holds out as having such knowledge or skill.
D. all of the above |
|
Definition
|
|
Term
Offers such as bids made to the state, municipality, or other governmental body for the construction of a building or some other public work, can be revoked by statute.
True or False? |
|
Definition
| False. They are irrevocable by statue |
|
|
Term
Mary offers John $300 if John will climb to the top of the flagpole in the center of campus. John commences his ascent, and when he is five feet from the top, Mary wants to revoke her offer.
Can Mary revoke her offer? |
|
Definition
No. Mary cannot revoke her once performance has been started
But, Mary could have revoked her offer any time prior to the start of John's performance. |
|
|
Term
John's Plumbing Co. submits a written offer for plumbing work to be used by Tom's Building Co. as part of Tom's bid as a general contractor. John knows that Tom is relying on John's bid, and in fact Tom submits John's name as the plumbing subcontractor in the bid.
Can John revoke his offer? |
|
Definition
| No. John's offer is irrevocable until Tom has a reasonable opportunity to notify John that Tom's bid has been accepted. |
|
|
Term
Which of the following is not considered a duration of an offer: (May Be More Than One)
A. Acceptance
B. Lapse of time
C. Revocation
D. Rejection
E. Counter offer
F. Death or Incompetentcy
G. Destruction of subject matter
H. Subsequent illegality
I. None of the above |
|
Definition
|
|
Term
Assume that John writes Mary a letter stating that he will sell to Mary a secondhand color television set for $300.
Mary replies that she will pay John $250 for the set. This is a counteroffer which, upon receipt by John, terminates the original offer. John may, if he wishes, accept the counteroffer and thereby create a contract for $250.
Does this terminate John's original offer? |
|
Definition
| Yes, This is a counteroffer which, upon receipt by John, terminates the original offer. John may, if he wishes, accept the counteroffer and thereby create a contract for $250. |
|
|
Term
Assume that John writes Mary a letter stating that he will sell to Mary a secondhand color television set for $300.
Mary replies that she wishes to consider the $300 offer but is willing to pay $250 at once for the set
Does this terminate John's original offer? |
|
Definition
| No. She is making a counteroffer but it does not terminate John's original offer. |
|
|
Term
| When the offeree dies or ceases to have legal capability to enter into a contract, does anyone else have the power to accept the offer? |
|
Definition
| No, because an ordinary offer is not assignable (transferable) and can be accepted only by the person to whom it was made. So the offer terminates. |
|
|
Term
| A type of counteroffer which purports to accept the offer but expressly makes the acceptance conditional upon the offeror's assent to additional or different terms. This is called a: |
|
Definition
|
|
Term
Mary publishes an offer of a reward to anyone who returns the diamond ring which she has lost, and John, with knowledge of the offer, finds and returns the ring to Mary, John has accepted the offer. If, however, John returns the ring to Mary but in doing so disclaims the reward.
Is there a contract?
What type of offer is this? |
|
Definition
A unilateral contract offer
There is no contract. Without the intention of accepting the offer, merely doing the act requested by the offeror is not sufficient to form a contract. |
|
|
Term
| A noncontractual promise that binds the promisor because she should reasonably expect that the promise will induce the promisee (offeree) to take action in reliance on it |
|
Definition
|
|
Term
An auctioneer does not make offers
True or False? |
|
Definition
| True. He invites offers to bidders |
|
|
Term
Advertisements are only invitations to make an offer.
True or False? |
|
Definition
|
|
