Exam 7: The Nature and Creation of Contracts

By submitting a tender,a party normally

An invitation to treat

A bilateral contract

As a matter of risk management,how can a business avoid becoming involved in a battle of the forms?

From a risk management perspective,explain why it may be better for a business to use an invitation to treat,rather than an offer,when seeking someone to buy its product.

Henrique posts a notice at the racetrack that says he is willing to sell his old horse for $5000.When he returns to the track the next day two people arrive at the same time to buy the horse.A court would most likely say that Henrique

Theta Foods has a promotion in which a customer can send in 600 bar codes and receive an all-inclusive trip to Mexico,but the contest ends after only two weeks.Barry realizes that six-packs of pudding are individually coded and are on sale 2-for-$1,so the trip will cost only $300.He buys the pudding,but when he redeems it,Theta says because he did not inform them of his participation,he isn't eligible for the trip.Which of the following is true?

An offer can be revoked

Layton Fine Fashions had a shipment of orange ties that it wished to sell.It therefore placed an advertisement,on Monday,in the town newspaper that said,"Fine silk orange ties.The season's hottest fashion trend.This week only-Come to Layton Fine Fashions and we guarantee that you'll pay no more than $35." The advertisement was such a success that the ties were almost entirely sold out within two days.Which of the following statements is TRUE?

An offer,that is not an option contract,is always automatically revoked if either the offeror or the offeree dies before acceptance.

How is the concept of a meeting of the minds related to the concepts of offer and acceptance? Illustrate your answer by reference to the phenomenon of a cross-offer.

ABC Inc and XYZ Ltd entered into a written agreement for the purchase and sale of paper products.That agreement contained a clause that said: "This arrangement is not entered into,nor is this memorandum written,as a formal or legal agreement,and shall not be subject to the jurisdiction of the Law Courts or in any other way be enforceable by law." ABC Inc wants the paper products,but XYZ Ltd refuses to deliver them.Which of the following statements is most likely TRUE?

Cindy calls David to accept his offer to trim her hedges in exchange for a haircut.Cindy is described as the

Explain what it means to say that the offeror is the "master of the offer." Provide examples to support your answer.

Doug posted notices all over the neighborhood offering a reward of $100 to anyone who found his lost border collie,Lyla.Dr.Davidson who lived down the street was walking his dog in the river valley when he saw Lyla,who plays with his dog frequently.He returned Lyla back to Doug.Doug thanked him and Dr.Davidson returned home.He explained what he had done and then his children asked him if he had received the $100 reward being offered by Doug.When he stated he had not,Dr.Davidson's children insisted that he return to Doug's home and ask for the reward.When Dr.Davidson asked Doug for the reward,Doug told him that it was too late and he did not have to pay it.Which of the following is true?

On June 1,Maureen sent a letter to Joel that offered to sell 10 000 shares in Tadpole Inc (a computer software company)for $5 each.Her letter did not require Joel to respond by any particular date.On June 3,Tadpole Inc publicly announced that its engineers had perfected a new technology that would revolutionize the electronic commerce industry.By June 4,the price of a single share in the company had increased to $100.On June 6,Joel returned from his cottage and learned of both Maureen's offer and the price of Tadpole Inc shares.He promptly sent a letter to Maureen that said,"I accept your offer.I will pay a total of $50 000 for 10 000 shares in Tadpole Inc." Maureen obviously no longer wants to sell her shares under the price that she quoted in her offer.Discuss the factors that a court would consider in deciding whether or not she and Joel had created a contract.

"If a contractual offer is accepted by conduct,rather than words,the parties must have a unilateral contract,rather than a bilateral contract." Discuss that statement.Use examples to prove your answer.

A statute makes it illegal and a crime for an unlicensed individual to "offer for sale a switchblade knife." Mack,who does not hold a licence,owns a store that deals in a variety of items.The front window display case,which is visible from the street,contains a switchblade knife that has a price tag on it.Mack has undoubtedly committed a crime because he does not hold a licence.