Exam 10: Mutual Assent

Jack has been in the business of selling carpeting for 20 years.He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard.Bob agrees and sends back the following letter confirming the deal: Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the rate of $20 per yard.We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.Very truly yours, Bob Which of the following is true?

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.

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.

Martha puts an ad in her company's newsletter saying she would pay $5,000 for a first-issue Grace Kelly stamp to the first person who accepted her offer.Martha decides she would rather go on a European vacation and changes her mind about investing in the stamp.Martha posts a sign at the executive water fountain saying the offer is no longer valid.A foreman from a branch plant takes a flight to the Chicago main office to see Martha and accept her offer.Martha does not owe him any money to pay for a breach of contract.

An offer need not take any particular form to have legal validity.To be effective, however, it must:

Distinguish between a rejection of an offer and a revocation of an offer.

In the Osprey L.L.C.v.Kelly-Moore Paint Co.,Inc.case, the Supreme Court of Oklahoma held that:

Both the Code and the Restatement provide that, unless the language of the offer or the circumstances indicate otherwise, an authorized means of accepting an offer is any reasonable means of communication.

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

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

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?

Amber asked Trent, "Would you be interested in buying my quarter horse for $650?" If Trent replies that he would, a contract has been formed.

Under FTC regulations and state legislation, a seller may not advertise goods at one price and then raise the price once demand has been stimulated.

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 $15.00.Alice threatens to sue Michelle for breach of contract.

When a bid is made at an auction, it can be withdrawn if the auctioneer has not yet accepted the bid, because the auctioneer has the power of acceptance.

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

Albert read ElectroCorp's ad in the local newspaper advertising a flat-screen TV for $89.Albert rushed to the store to buy the TV only to be told by the salesperson that the ad was a misprint and the price should have been $389.Albert gave the salesperson $89 plus sales tax and demanded the TV.

Don offers to sell his diamond ring to Emily.Diane overhears the offer and says, "I accept the offer."

George offered to paint Catherine's barn for $3,000.Catherine said she would accept the offer if George would paint the woodshed, too.At this point, they have made a valid and enforceable contract.

An offer may be made to the general public.