Exam 10: Mutual Assent

On June 1, a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event.On June 30, the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order.Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance.What is the status of the interaction between Action and Brace?

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.

The UCC battle of the forms rule:

If an offer states that a reply must be received by a certain date, receipt is presumed in those situations when acceptance is mailed.

Under the common law, the __________ must be the mirror image of the __________.

When does acceptance of an offer to enter into a unilateral contract generally occur?

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

Under the Code, an offer for the purchase or sale of goods:

On June 1, Edward visited a bicycle sales and service center.Edward spotted a used bike he liked and was told by the dealer that he could have the bike for $100 cash.Since Edward needed a few days to get the money, Edward got a signed, written statement by the dealer that Edward could buy the bike for $100 at anytime on or before June 15.On June 10 Edward came to the dealer with the money, but the bike had been sold to another customer.Was the dealer under any obligation to Edward to keep this offer open until June 15? Give legal reasoning for your answer.

The person to whom an offer is made is an offeree.

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.Elmer:

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

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

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

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Lyle offers to sell his house to Dennis for $75,000.Dennis responds, "I will pay you $75,000 for the house if you first paint the second floor." This response could best be described as:

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 seller had operated only eight hours a day at the time the contract was made and the buyer had knowledge only of the eight-hour-a-day operating schedule.

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

Ron offers to sell Pete his stamp collection.Pete gives Ron $10 to induce Pete into keeping his offer open for a week.If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of a breach of contract lawsuit being filed against him.