Exam 10: Creating a Contract: Offers

A counteroffer:

An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

When the offeror does not specifically indicate what he/she was willing to do and what he/she wanted the offeree to agree to do in return,his/her behavior will probably be classed as:

Gavin tells Rod that he will pay him $400 to paint his house.Rod starts to paint,intending to accept.Halfway through his paint job,Gavin tells Rod that he wants to revoke the offer.Under this scenario:

Explain the special problems associated with the bidding process in construction works to the general contractor,if the subcontractor is allowed to revoke the offer.

The general rule is that an offeror cannot revoke an offer at any time prior to acceptance if he has promised not to revoke for a stated period of time.

Brian offers to sell Jerry his Ranch house but a hurricane destroys the house before Jerry accepts the offer.What would be the possible outcome of this offer?

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor,Sam,for $100.Beck's mom calls Sam and tells him about her conversation with Beck.Sam then calls Beck and tells him that he accepts his offer.Under these circumstances:

Ads for the sale of goods at a specified price are considered as ________ by the courts.

In an agreement between two parties,if the facts indicate that a term was left out because the parties were unable to reach an agreement about it,it would probably mean that:

In an auction:

When the parties to a contract do not expressly agree on all the terms of their contract,it prevents the creation of a contract.

The main thing that courts look for in deciding whether the parties entered into a contract is a "meeting of the minds" between the parties.

In deciding a contract dispute,courts look to the subjective intent of the parties.

Which of the following basic requirements must be met,for an offer to sell goods to be a firm offer?

To determine whether the offeror has created a present intent to contract,courts consider:

Bob Hunter,a merchant,makes an offer to Linda,another merchant,to buy 1,000 of her widgets in a signed letter containing all necessary terms of the offer.The letter states that Hunter will keep the offer open for three weeks from the day the offeree receives it.One week later,Hunter writes Linda another letter attempting to revoke his offer.Linda writes Hunter a letter accepting Hunter's original offer before she receives his revocation.What is the result?

A subcontractor's bid:

To avoid problems,many courts hold a contract to be bilateral:

If the subject matter of a proposed contract is destroyed without the knowledge of either party after the making of an offer but before its acceptance,the offer cannot be terminated.