Question 1

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer.

Accepted Answer

A) True 
 B)False  True

Question 2

A valid offer is one that is indefinite.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is true of revocation of an offer?

Accepted Answer

A)  The offeror can revoke an offer any time after a contract is formed. 
B)  The binding promise to hold an offer open can be revoked at will. 
C)  The offer is terminated by the lapse of the time specified in the offer. 
D)  The revocation of an offer should be communicated to the offeree after his assent. 
A)  The offeror can revoke an offer any time after a contract is formed. 
B)  The binding promise to hold an offer open can be revoked at will. 
C)  The offer is terminated by the lapse of the time specified in the offer. 
D)  The revocation of an offer should be communicated to the offeree after his assent. C

Question 4

What are the requirements of a valid offer? Explain.

Accepted Answer

A valid offer includes three requirement

Question 5

An offer expresses the willingness of the offeror to enter into a contractual agreement.

Accepted Answer

A) True 
 B)False

Question 6

A firm offer can be best defined as:

Accepted Answer

A)  an offer that cannot revoked for a reasonable time if no time is stated. 
B)  an offer that becomes invalid if payment is not made to the offeror. 
C)  a written document which has a seal in place of the merchant's signature. 
D)  a verbal promise to hold an offer open. 
A)  an offer that cannot revoked for a reasonable time if no time is stated. 
B)  an offer that becomes invalid if payment is not made to the offeror. 
C)  a written document which has a seal in place of the merchant's signature. 
D)  a verbal promise to hold an offer open.

Question 7

Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to notify the offeror of non-acceptance.

Accepted Answer

A) True 
 B)False

Question 8

The offeree may make an inquiry about terms that differ from the offer's terms without rejecting the offer.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a requirement for the acceptance of an offer to be valid?

Accepted Answer

A)  Acceptance of the offer must be made through a set of prescribed procedures. 
B)  The acceptance must be communicated by the offeree to the offeror. 
C)  The acceptance should be made through a mere mental intention to accept the offer. 
D)  Acceptance of the offer must be made after a binding contract has been formulated. 
A)  Acceptance of the offer must be made through a set of prescribed procedures. 
B)  The acceptance must be communicated by the offeree to the offeror. 
C)  The acceptance should be made through a mere mental intention to accept the offer. 
D)  Acceptance of the offer must be made after a binding contract has been formulated.

Question 10

Advertisements and catalogs are examples of general invitations.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of a binding contract?

Accepted Answer

A)  It allows an offer to be revoked once the contract is formed. 
B)  It is created when an offeree makes a proposal to the offeror. 
C)  It is considered valid when the offer made is indefinite in nature. 
D)  It is created when the offeree clearly shows an intention to accept the offer. 
A)  It allows an offer to be revoked once the contract is formed. 
B)  It is created when an offeree makes a proposal to the offeror. 
C)  It is considered valid when the offer made is indefinite in nature. 
D)  It is created when the offeree clearly shows an intention to accept the offer.

Question 12

An offeree's response that rejects an offer by varying its terms is known as a(n) _____.

Accepted Answer

A)  counteroffer 
B)  option 
C)  circular 
D)  invitation 
A)  counteroffer 
B)  option 
C)  circular 
D)  invitation

Question 13

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered as accepted.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of a valid offer?

Accepted Answer

A)  It is indefinite in nature. 
B)  It is instituted by the offeree to the offeror. 
C)  It is seriously intended. 
D)  It can be accepted by anyone who hears about it. 
A)  It is indefinite in nature. 
B)  It is instituted by the offeree to the offeror. 
C)  It is seriously intended. 
D)  It can be accepted by anyone who hears about it.

Question 15

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

Accepted Answer

A)  Lily is still entitled accept the offer through legal action. 
B)  Lily can accept the offer within a period of ten days after Maya's death. 
C)  Lily must consider the offer automatically revoked and void. 
D)  Lily can claim that she was not aware of Maya's death and accept the offer. 
A)  Lily is still entitled accept the offer through legal action. 
B)  Lily can accept the offer within a period of ten days after Maya's death. 
C)  Lily must consider the offer automatically revoked and void. 
D)  Lily can claim that she was not aware of Maya's death and accept the offer.

Question 16

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

Accepted Answer

A) True 
 B)False

Question 17

According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.

Accepted Answer

A) True 
 B)False

Question 18

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.

Accepted Answer

A)  claimant 
B)  offeror 
C)  acceptor 
D)  summoner 
A)  claimant 
B)  offeror 
C)  acceptor 
D)  summoner

Question 19

Which of the following is true of offers and invitations?

Accepted Answer

A)  Window displays and catalogs are examples of personal invitations. 
B)  Letters addressed to a specific person automatically makes them personal sales letters. 
C)  The general rule is that circulars are offers made to specific customers. 
D)  Circulars are invitations to the recipients to make an offer. 
A)  Window displays and catalogs are examples of personal invitations. 
B)  Letters addressed to a specific person automatically makes them personal sales letters. 
C)  The general rule is that circulars are offers made to specific customers. 
D)  Circulars are invitations to the recipients to make an offer.

Question 20

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Accepted Answer

A) True 
 B)False

Exam 6: Offer and Acceptance

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer.

A valid offer is one that is indefinite.

Which of the following is true of revocation of an offer?

What are the requirements of a valid offer? Explain.

An offer expresses the willingness of the offeror to enter into a contractual agreement.

A firm offer can be best defined as:

Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to notify the offeror of non-acceptance.

The offeree may make an inquiry about terms that differ from the offer's terms without rejecting the offer.

Which of the following is a requirement for the acceptance of an offer to be valid?

Advertisements and catalogs are examples of general invitations.

Which of the following is true of a binding contract?

An offeree's response that rejects an offer by varying its terms is known as a(n) _____.

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered as accepted.

Which of the following is true of a valid offer?

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.

Which of the following is true of offers and invitations?

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

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