Exam 10: Mutual Assent

Hugh recently purchased a motorcycle for $3,000 but has had extensive problems starting the motor.In disgust at not being able to start the motor, 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.

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Brooks offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays Brooks $100.Which statement describes the payment of $100?

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than:

Which is not a revocable offer?

In the case of Lefkowitz v.Great Minneapolis Surplus Store, Inc., the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

Discuss how parties show mutual assent and what standard is used to determine agreement.

A counteroffer operates as a rejection of the original offer.

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

An offer can only be communicated by words; conduct cannot constitute an offer.

An ad in a newspaper or a circular describing goods and stating prices would generally be considered:

The Rogers family has always wanted to buy the beautiful house at the top of the hill.The owners of the house, the Thompsons, decided to sell and called Mr.Rogers.Before he could get back in touch with Mr.Thompson, Mr.Rogers suffered a heart attack and died.Mr.Rogers' adult daughter, to whom the Thompsons had not spoken, still wants the house.She may:

The definition of commercial reasonableness as used in contract law includes:

An acceptance is generally effective upon dispatch.

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?

An output contract is an agreement of a buyer to purchase a seller's entire output for a stated period.

An acceptance that contains terms different from or additional to those in the offer receives the same treatment under the common law and under the UCC.

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

Contract law generally places more importance on the intent of the parties to form a contract than on the inclusion of certain terms in the contract.

In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge only of the eight-hours-a-day operating schedule.