Deck 10: Agreement and Consideration

Question 1

Another term for "meeting of the minds" is "mutual dissent."

Answer 1

False

Question 2

If Jennifer receives a catalog in the mail and sees an item she wants priced at $100,because the catalogue is in writing the $100 price is considered an offer which she can accept.

Answer 2

False

Question 3

A statement such as "Are you interested in selling your building for $2 million?" is not an offer.

Answer 3

True

Question 4

The person to whom the offer is made is called the offeree.

Question 5

The objective theory of contracts asks whether a reasonable person,viewing the circumstances,would conclude that the parties intended to be legally bound.

Question 6

The words "agreement" and "contract" are often used interchangeably.

Question 7

The offeror is the party with the power to decide whether to create a contract.

Question 8

Generally,time of performance cannot be implied.

Question 9

The common law of contracts requires an exact specification of contract terms.

Question 10

Since contract law applies a "reasonable person standard," an agreement does not require a "meeting of minds" of the parties.

Question 11

The parties or subject matter of the contract usually cannot be implied if an item or a service is unique or personal.

Question 12

An offer is also commonly referred to as an invitation to negotiate.

Question 13

John owns two cars.He says to Faye,"I'll sell you either one of my cars for $8,000." This would be a valid offer.

Question 14

An agreement is an involuntary exchange of promises between two or more legally competent persons to do,or refrain from doing,an act.

Question 15

The intent to enter into a contract is determined using the subjective theory of contracts.

Question 16

An offer made in jest,where a reasonable person would conclude that it was made in jest,cannot result in a contract.

Question 17

The Restatement (Second)of Contracts merely requires that the terms of the offer be "reasonably certain."

Question 18

Generally,an offer is not effective until it is actually received by the offeree.

Question 19

Generally,a price term can be implied if there is a market or source from which to determine the price of the item or service.

Question 20

Courts today can imply a missing term if a reasonable term can be implied.

Question 21

An advertisement is considered an offer if it is so definite or specific that it is apparent that the advertiser has the present intent to bind himself or herself to the terms of the advertisement.

Question 22

Brad offers to sell his house to Vince for $500,000.Vince says that the price is too high and offers to buy the house for $475,000.Brad says no.If Vince then says,"Okay,I accept the offer at $500,000",they have a contract.

Question 23

In an auction without reserve,the bidders are the offerors,and the seller is the offeree.

Question 24

An offer may be terminated by operation of law,but not by the actions of the parties.

Question 25

An offer to pay a reward is an offer to form a bilateral contract.

Question 26

In an auction with reserve,the seller is the offeror,and the bidders are the offerees.

Question 27

In an auction with reserve,the seller retains the right to refuse the highest bid and withdraw the goods from sale.

Question 28

Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

Question 29

Revocation may be made by the offeror's express statement,or an act of the offeror that is inconsistent with the offer.

Question 30

An offer is considered to be communicated to anyone who learns of its terms,regardless of how that person learns of its terms.

Question 31

An offer for a reward can be accepted by a promise to perform.

Question 32

A counteroffer by the offeree simultaneously terminates the offeror's offer and creates a new offer.

Question 33

If you promise to keep an offer open until 4:00 p.m.and no consideration is exchanged when the offer is made,that offer may not be revoked prior to 4:00 p.m.

Question 34

In general,advertisements are treated as offers.

Question 35

If the time an offer remains open is not specified,it remains open until revoked by the offeror.

Question 36

Unless otherwise expressly stated,an auction is considered an auction without reserve.

Question 37

An option contract is formed when an offeree prevents the offeror form revoking his or her offer by paying the offeror compensation to keep the offer open for an agreed-upon period of time.

Question 38

An offer cannot be accepted if it is not communicated to the offeree by the offeror or a representative or an agent of the offeror.

Question 39

In an auction with reserve,a contract is formed only when the auctioneer strikes the gavel down or indicates acceptance by some other means.

Question 40

A counteroffer by the offeree simultaneously reinstates the offeror's offer and creates a new offer.

Question 41

An acceptance must be clear,ambiguous,and have only one (1)possible meaning.

Question 42

An offeree's acceptance must be equivocal.

Question 43

A counteroffer terminates the existing offer.

Question 44

An offer that is made to two (2)or more persons jointly may be accepted by either person.

Question 45

According to the mailbox rule,the offeree must accept the terms of the offer with modification.

Question 46

With a counteroffer,the previous offeree becomes the new offeror,and the previous offeror becomes the new offeree.

Question 47

An offer expires at the lapse of time of an offer.

Question 48

If no time is stated in the offer,the offer terminates after thirty (30)days.

Question 49

Unless otherwise stated,an offer made "face-to-face" or during a telephone call usually expires when the conversation ends.

Question 50

The mailbox rule proves that revocations of offers take effect the moment they are mailed.

Question 51

An offer can be accepted only by the offeree to whom it was made.

Question 52

An offer terminates if the subject matter of the offer is destroyed through no fault of either party prior to the offer's acceptance.

Question 53

If an offer is made individually to two (2)or more persons,each has the power to accept the offer.

Question 54

Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror,such as the sale of property of the offeror.

Question 55

The death or incompetency of either the offeror or the offeree terminates an option contract.

Question 56

A rejection is treated as a new offer that leaves the original offer open as well.

Question 57

An acceptance is "a manifestation of assent by the offeror to the terms of the offer in a manner invited or required by the acceptance,as measured by the subjective theory of contracts."

Question 58

An acceptance is valid only if it indicates acceptance of the exact terms of the offer.

Question 59

Generally,a counteroffer is not effective until it is actually received by the offeror.

Question 60

The mailbox rule provides that an acceptance sent through the mail is effective only when it reaches the offeror's mailbox.

Question 61

Generally an offeree must accept an offer by an authorized means of communication.

Question 62

The mailbox rule is also called the "acceptance-upon-arrival" rule.

Question 63

The concept of consideration is that the parties to a contract should carefully consider the contract's terms before they decide to enter into the agreement.

Question 64

If an offeree first dispatches a rejection and then sends an acceptance,the mailbox rule applies to the acceptance.

Question 65

Most "best efforts" contracts do not meet consideration requirements because the promise is a promise to try,but not an absolute promise of performance.

Question 66

According to the mailbox rule,acceptance is effective when it is dispatched,even if it is lost in the transmission.

Question 67

An illusory promise is an example of a promise that will be enforced even when consideration is lacking.

Question 68

A preexisting duty can arise out of an existing contract.

Question 69

If Professor Johnson agrees to give up smoking cigars for nine months in exchange for $1,000,Johnson's promise would not be sufficient consideration because if his health improves he is suffering no detriment.

Question 70

Consideration that is exchanged after mutual assent to the present contract is called past consideration.

Question 71

In order to meet the consideration requirement,the legal detriment suffered by each party must have been given in exchange for that of the other party.

Question 72

Past consideration is not sufficient consideration for a new promise.

Question 73

A party has given consideration for a contract if that party suffers a legal detriment,even if the other party does not receive a benefit.

Question 74

A gift must be returned unless there was adequate consideration.

Question 75

The offer can stipulate that acceptance must be by a specified means of communication.Such stipulation is called implied authorization.

Question 76

To be enforceable,a contract must arise from a bargained-for exchange.

Question 77

Gift promises are also called fortuitous promises.

Question 78

An accord is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

Question 79

Due to lack of consideration,a promise to make a gift will not be enforced and a court will usually order a completed gift to be returned.

Question 80

Because of the communication requirement,silence can never create a valid acceptance.