Exam 8: Offer,acceptance,and Mutual Assent

Under the general law of contracts,an option contract holds an offer open for an agreed period of time,regardless of whether there is sufficient legal consideration.

On October 10^th,Juliana sends Linda a letter offering to sell her book collection for $15,000.Three days later,on October 13^th,Juliana dies.On October 15^th,without knowing Juliana had died,Linda sends Juliana a letter accepting her offer.Juliana's heirs inform Linda that the $15,000 offer is revoked and that they will not sell the collection for less than $20,000.Linda demands specific performance.What result?

Mercedes receives a box of unordered office supplies in the mail.What is her legal obligation?

Most of the time,printed and electronic advertisements are bait-and-switch confidence games.

An option contract:

Jose agrees to sell his car to Diego for $5,000 if he is accepted to Harvard Medical School.This contract is:

The lawyers of Leo's estate put an auction ad in the local newspaper asking "without reserve" bids on his 100-acre ranch along the Guadalupe River.All bids were to be texted by 5 P.M.August 1st.Only one bid was sent,and that was Sam's bid of $100.Assuming no other legal issues,the Estate of Leo and Sam have an enforceable agreement for the purchase and sale of the ranch for $100.

When dealing with a text offer which requests a text back to accept,the acceptance is complete when the text acceptance is received by the offeror.

Teri sends an offer to Morris to sell her car for its Blue Book value.Morris is the offeree.

A mistake by only one of the parties is called a ________ and ________ offer sufficient grounds for rescission or renegotiation.

Matrix Corporation,a computer manufacturer,agrees to purchase from Chipmaster,Inc.all the computer chips that Chipmaster can produce during the next 12 months,at cost plus a twelve-percent markup.Matrix later does not purchase any computer chips during the 12-month year.Can Chipmaster enforce the agreement made with it?

A merchant in a sale of goods contract under Article can agree to an option that exceeds one month in duration.

Todd offered in writing on Monday to sell his desk to Mike for $150.Todd's offer stated that unless Mike rejected Todd's offer by Thursday,it would be considered accepted.Mike did not reply until Saturday,when he rejected the offer and refused to buy the desk.Todd insists that Mike is bound to purchase the desk,since he did not reject the offer by Thursday.Discuss the validity of the contract and the legal obligation of Mike.

Rosa sends an offer to Kellen that requires acceptance to be made by U.S.mail.Kellen accepts in a timely manner,but sends the acceptance by FedEx which delivers the acceptance to Rosa two days faster than the U.S.mail would.Under traditional common law rules,has Kellen accepted Rosa's offer?

Shelly was involved in an auto accident and was admitted to the local hospital,as she had suffered severe injuries.She informed the hospital staff that she was covered under accident insurance,and that the insurance company would pay for the medical bills.When the insurance agent arrives,he informs her that the insurance will cover every cost and that all she has to do is sign some papers for the insurance company to start the procedures.The papers that Shelly signs are actually an agreement that the insurance company will pay only 30 percent of the medical bills,since Shelly was driving recklessly.Analyze the case.

While looking for apartments,Brittany finds one that she likes.The building manager agrees to an option contract in which he will hold the apartment for Brittany for four days in return for $100.At the end of the fourth day,Brittany finds another apartment that she likes better and signs a lease with its building manager.Because Brittany's contract with the original building manager is an option contract,the building manager is under:

A lease option permits a party to lease real property while at the same time holding an option to purchase that property.

Acorn Outfitters advertises a large tent,usually selling for $250,to be sold to the first customer the next morning for $25.Samuel is the first in line,but Acorn claims that the tent has already been sold.Acorn has engaged in an auction.

An auction with reserve is a contract in which one party consents to sell to a second party all of the goods that party makes in a given period of time.

Omar offers to sell a motorcycle to Adanne for $10,000.Adanne replies,"I will pay $10,000 if you overhaul the engine." Adanne's reply is a counter offer.