Exam 10: Mutual Assent

A counteroffer operates as a rejection of the original offer.

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

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:

A contract that binds the offeror to keep an offer open for a specified period of time is known as:

What are the ways in which an offer may be terminated?

An acceptance is generally effective upon dispatch.

A contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act.

Discuss silence as acceptance of an offer.

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.

Which of the following would NOT be a merchant under Article 2 of the UCC?

Ricardo posts a sign in the 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.

Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00. Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job. Michelle apologizes for the misprint. Alice has just finished a class in contract law and insists that the store sell her five suits for $15. Alice threatens to sue Michelle for breach of contract.

Under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed.

An offer is an indefinite proposal made by one person to another.

An offer may be made to the general public.

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

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene. The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

Dakota's question to Austin, "Will you buy my computer for $800?" is an offer to Austin.

The way parties usually show mutual assent is by:

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