Exam 16: Formation of Sales and Lease Contracts

Which of the following is an example of an irrevocable offer?

The UCC provides that a contract is created when the offeror receives the acceptance.

Miranda Airways,a commercial air carrier,has a contract with Wurtherton Inc.,an airplane manufacturer,to purchase a new plane.Due to a sudden shortage of cash,Miranda Airways goes to MetrosBank.MetrosBank issues a document to Wurtherton that if Miranda does not pay for the transaction,MetrosBank would.Wurtherton considers the offer,and then sends an acceptance with additional terms.The additional terms stipulates that Miranda Airways could have the new airplane for a period of 10 years,and then return it to Wurtherton.Miranda Airways agrees to the acceptance,and Wurtherton hands the new airplane over to them.Which of the following documents did MetrosBank issue to Wurtherton to help Miranda Airways secure the airplane?

An oral sales or lease contract that should otherwise be in writing is enforceable to the extent to which the goods have been received and accepted by the buyer or lessee.

If the parties to a contract do not agree to a place of delivery during the time of contracting but know that the goods are located at some other place,then the place of delivery is the seller's place of business.

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n)________.

A ________ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration.

Article 2 of the UCC generally applies to all sales contracts irrespective of the involvement of merchants.

Two merchants exchange contract forms with each containing additional terms favorable to the drafter.Can the additional terms be accepted as part of the contract? Are there any exceptions to accepting the additional terms?

A lease transaction can involve a supplier apart from the lessor and lessee.

A person who transfers the right of possession and use of goods under a lease is known as the ________.

The UCC provides that an acceptance of goods occurs if a buyer fails to reject the goods within a reasonable time after the delivery.

Article 2 (Sales)and Article 2A (Leases)of the ________ are intended to provide clear,easy-to-apply rules that place the risk of loss of the goods on the party most able to either bear the risk or insure against it.

When is the course of performance considered in a written contract?

Parris Boutique and the New Line Clothes Company decide to lease a new property of Green Floor Builders for their joint venture.To finance the acquisition,they go to a local bank.The bank purchases the property from Green Floor and leases it to the firms.In this case,________ is the supplier of the lease.

Under the UCC,if the time,place,and manner of delivery of goods are not mentioned in a contract,________.

Which of the following is the correct order of prioritizing the external sources used to interpret the terms of a written contract?

Subjects that are severable from real estate may be classified as goods subject to Article 2 of the UCC.

Miranda Airways,a commercial air carrier,has a contract with Wurtherton,Inc.,an airplane manufacturer,to purchase a new plane.Due to a sudden shortage of cash,Miranda Airways goes to MetrosBank.MetrosBank issues a document to Wurtherton that if Miranda does not pay for the transaction,MetrosBank would.Wurtherton considers the offer,and then sends an acceptance with additional terms.The additional terms stipulates that Miranda Airways could have the new airplane for a period of 10 years,and then return it to Wurtherton.Miranda Airways agrees to the acceptance,and Wurtherton hands the new airplane over to them.What UCC rule was applied when Miranda Airways agreed to the additional terms acceptance provided by Wurtherton?

Explain with an example a transaction where the lessor does not manufacture,select,or supply the goods,but acquires title to the goods?