Exam 6: Formation of a Contract: Offer and Acceptance

When an offeror invites acceptance by mail,it is possible for the offeror to state in the offer that the offer will only become a contract once acceptance is actually received by the offeror.That is,the postal rule does not apply even though an invitation to acceptance by mail was given.

Explain the theory behind lapse as a way of preventing the formation of a contract.

A offers to sell his car to B for $6000.00.However,B replies,"I will not buy it at that price," and walks away,never to be heard from again.In this situation,B's reply constitutes

Use this fact situation to answer the related questions that follow: Alexander enters a grocery store to purchase some tea.He walks through the aisles until he finds the aisle he wants with the different kinds of tea displayed on the shelves.He finds the tea that he wants and then goes to the cashier,who scans the tea and tells Alexander the price,which Alexander then pays.The cashier then hands the tea to Alexander,who leaves the store. In this situation,the tea on the store shelves is

Mary places a notice in a local variety store.The notice reads as follows: "I shall pay $1000 for the return of my dog,Mundo." Jim sees the notice.Jim finds the dog and returns it to her.Which of the following is true?

What is a counter-offer? What effect does a counter-offer have on an offer?

What is the legal effect of a counter-offer?

On October 1,Allan mailed an offer to Bob to sell to Bob 1000 boxes of tin plates at a fixed price.The offer was received by Bob on October 11,and Bob immediately accepted the offer by telegram on October 11 and confirmed by letter on October 15.On October 8,Allan mailed a revocation of his offer,which was received by Bob on October 20.In this situation

Not all offers must be communicated to the offeror for a valid contract to arise.Explain.

Where is a contract said to be formed?

A standing offer is

Explain how the rule concerning withdrawal of an offer by post differs from that concerning the time of acceptance by post.

Bilateral contracts are usually made up of two stages - promises by both parties to perform and later,performance or fulfillment of the promises.When one of the parties to a bilateral contract does not receive the performance as promised