Exam 13: Formation of Contracts: Offer and Acceptance

An offer that is indefinite may be clarified by reference to another writing through:

An offer is terminated upon rejection by the offeree unless:

In general, an acceptance occurs when:

If no termination date is specified for an offer, the offer will remain open:

Contract terms may not be implied from conduct.

An acceptance must be absolute and unconditional.

If not an offer, the first statement made by one of two persons is most properly termed a(n):

An output contract is too vague to be a legally-enforceable agreement.

Generally, advertisements, catalog prices, and circulars are offers that can be accepted.

A party to an existing contract can modify the agreement without the other party's actual acceptance or approval.

A(n) __________ contract is a contract to buy all requirements of the buyer from the seller.

A firm offer is an offer that states that it is to be irrevocable, or irrevocable for a stated period of time.

When an offer has been accepted:

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Bart owned 100 shares of a stock that was actively traded on a national stock exchange. Bart wanted to sell the shares but felt that his profit would be seriously diminished by selling through a broker and paying the customary brokerage commission. Bart offered the 100 shares to any of a group of six people in a conversation at a party. The offered price was $72.50 per share, the price at which the shares had closed that day. No one really responded to the offer at that time. Ten days later when the shares were trading at $76.25, Marie, one of the offerees at the party, appeared at Bart's office saying that she accepted the offer. Bart claimed the offer no longer was available. Evaluate the legal outcome of this dispute.

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

A requirements contract is too vague to be a legally-enforceable agreement.

In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

The bid of each contractor for a job is considered an offer.