Exam 13: Formation of Contracts: Offer and Acceptance

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers.

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date.

At an auction sale, each bid is:

If an offeree accepts an offer before it is effectively revoked:

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n):

A said to B, "I'll give you $100 for that bracelet." B replied, "$135." A said, "No thanks." B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?

An agreement that consists of two or more parts and calls for corresponding performances of each part by the parties is called a:

A counteroffer is a(n):

Arthur made a bid at an auction by calling out the amount of $250. The auctioneer acknowledged Arthur's bid. There were no higher bids, and before the fall of the auctioneer's hammer, Arthur announced that he was withdrawing the bid. The auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had already been acknowledged. What is the result?

An offer gives the offeror the power to bind the offeree by contract.

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:

At an auction sale, a statement made by the auctioneer to draw forth bids constitutes an offer.