Exam 10: Mutual Assent

Jesse makes an offer to Ike, and Ike accepts; then the state legislature passes a law that makes performance of the contract illegal. What is the effect of the new statute on the contract?

If no time limit is stated, an offer will not terminate until both parties agree.

Ricardo posts a sign in his neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo. Alicia is entitled to the reward.

A valid offer may be in the form of an act for a promise, which is an offer to enter into an inverted unilateral contract.

Which of the following would most probably be considered a valid offer?

Hugh recently purchased a motorcycle for $4,000 but has had extensive problems starting the motor. In disgust at not being able to start the motorcycle, Hugh shouts to his friends, "Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Hugh a twenty-dollar bill.

Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that Alice includes her word processing software. What is the status of their discussions?

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

In general, which of the following will not terminate an offer?

Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. The advertiser:

Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce him to keep his offer open for a week. If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of a breach of contract lawsuit being filed against him.

If Thomas seemingly offers to sell to Raquel his Toro lawnmower but he intends to offer and believes he is offering her his Murray mower, and she accepts the offer, reasonably believing it was for the Toro, no contract has been formed because there is no mutual assent.

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.

Distinguish between a rejection of an offer and a revocation of an offer.

In general, an acceptance is effective upon dispatch.

If an offer states that a reply must be received by a certain date, the contract is formed at the time the offeree sends or dispatches the acceptance.

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

An offer need not take any particular form to have legal validity. To be effective, however, it must: