Deck 12: Agreement

Question 1

A preliminary agreement can constitute a binding contract if the parties have agreed on all essential terms.

Answer 1

True

Question 2

Posting an item for sale on an online auction site is an offer to form a contract.

Answer 2

False

Question 3

One element necessary for an effective offer is the offeror's good faith belief in its reasonableness.

Answer 3

False

Question 4

The offeror's intention to become bound by the offer must be subjectively clear.

Question 5

The power of acceptance continues forever.

Question 6

An offer made in undue excitement is an effective offer.

Question 7

An offer must express reasonably definite terms to be effective-no term may be reasonably inferred.

Question 8

An invitation to submit bids is an offer.

Question 9

Rejection of an offer is effective only when it is actually received.

Question 10

Two disinterested parties are required for an offer to be effective.

Question 11

In general, a price list may be construed as an offer.

Question 12

An agreement to agree to the material terms of a contract at some future date may be enforceable.

Question 13

The offeror can revoke the offer only be expressing repudiating it.

Question 14

A offer can be revoked by the performance of an act that is inconsistent with the existence of an offer and that is made known to the offeree.

Question 15

A request to negotiate is an offer.

Question 16

An exchange of e-mails cannot create a complete and unambiguous binding agreement.

Question 17

An agreement exists when one party offers a certain bargain to another party.

Question 18

An expression of opinion can indicate an intent to enter into a binding agreement.

Question 19

Ordinarily, one can agree to a bargain without knowing that it exists.

Question 20

An offer must be expressed in plain language to be effective.

Question 21

Acceptance may consist of words or conduct.

Question 22

For a contact to be considered valid and enforceable, the parties to a deal must

A)necessarily have it in writing.
B)manifest their voluntary consent to the same bargain.
C)know with certainty what kinds of promises will be enforced.
D)subjectively intend to agree to the terms.

Question 23

The offeree must accept the offer without adding or changing any terms.

Question 24

A click-on agreement can indicate the acceptance of an online offer.

Question 25

Because so much e-commerce involves parties in the United States, the preeminence of U.S. law in this area is not likely to be challenged in the future.

Question 26

Acceptance is timely if it is effective before the offer is terminated.

Question 27

An offer can be accepted by the offeree or any third party.

Question 28

Fresh Agro Inc. offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

A)market assumptions.
B)all of the choices.
C)subjective, unexpressed intentions.
D)words and actions.

Question 29

The primary purpose of the Uniform Electronic Transactions Act is to create new rules for electronic contracts.

Question 30

Before the UETA applies, each party to a transaction must agree to conduct it by electronic means.

Question 31

Acceptance of an e-contract must show that the offeree voluntarily assented to the offer's terms.

Question 32

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

A)effective.
B)not effective because comedy is not a serious subject.
C)not effective because Anton's tutoring will be subjective.
D)not effective because Brooke has no knowledge of the subject.

Question 33

Acceptance of an offer by a method not authorized by the offeror renders the offer invalid.

Question 34

In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

Question 35

An offer terminates automatically when the period of time specified in the offer has passed.

Question 36

If the offeror does not expressly specify a certain mode of acceptance, then acceptance can be made by any means, whether or not it is "reasonable."

Question 37

Merely inquiring about an offer constitutes rejection.

Question 38

Pye tries to start his car with no success. He yells that he will sell the car to anyone for $10. Qua, a passerby, hears Pye's yell. This is not an effective offer because it lacks

A)communication.
B)definite terms.
C)serious intent.
D)practicality.

Question 39

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

Question 40

An ad for the New Plays Festival asks playwrights to submit their work and "we might produce it for the world." Oded submits a play with a note that states, "I accept." Between the Festival and Oded, there is

A)a contract to produce Oded's play.
B)a contract to consider producing Oded's play.
C)a contract to negotiate with Oded to produce the play.
D)none of the choices.

Question 41

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance

A)exactly mirror those of the offer.
B)change the items offered, but do not change the price.
C)change the price, but do not change the items offered.
D)change both the price and the items offered.

Question 42

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is

A)an offer.
B)an invitation to submit offers, not an offer itself.
C)a catalogue, not an offer.
D)a price list, not an offer.

Question 43

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

A)the deal is binding except for the promise to hold the offer open.
B)a reasonable period of time is implied.
C)the offer must be held open for an indefinite period.
D)the deal is done.

Question 44

Rafi offers to sell his sailboat, Sea Siren , to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

A)still open.
B)terminated.
C)rejected and subject to a counteroffer.
D)revoked.

Question 45

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

A)accepted the offer.
B)made a counteroffer without rejecting the offer.
C)rejected the offer and made a counteroffer.
D)rejected the offer without making a counteroffer.

Question 46

Rico, an auctioneer, puts a semi-truck and trailer up for auction. Rico is

A)the offeror.
B)the offeree.
C)the bidder.
D)none of the choices.

Question 47

Maeve posts her motorcycle for sale on an online auction site. This is

A)an offer.
B)an invitation to negotiate, not an offer.
C)a price list, not an offer.
D)a request, not an offer.

Question 48

Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber Outlet accepts. Most likely, Kelly's death

A)does not affect the offer.
B)shortens the time of the offer but does not terminate it.
C)extends the time of the offer.
D)terminates the offer.

Question 49

On May 1 Meat Company offers to cure and smoke Natural Farm's products, and promises to keep the offer open until June 1. On May 3 Meat mails Natural a letter revoking the offer. The farm receives the letter on May 5 and responds on May 6. The company's revocation of the offer became effective on

A)May 3.
B)May 5.
C)May 6.
D)no date because the offer is irrevocable.

Question 50

Coffee Beans Inc. offers to buy Brewing Company's roasting services for a certain price. Brewing responds that the price is too low and thereby rejects the offer. The offer is

A)terminated.
B)valid for a reasonable time.
C)valid for the period of time prescribed by a state statute.
D)valid until Coffee Beans revokes the offer.

Question 51

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

A)communication.
B)definite terms.
C)serious intent.
D)none of the choices.

Question 52

Olen decides to sell his ranch, Pine Valley, in a live auction. When the auctioneer puts the property up for bids, it will be

A)an offer.
B)an invitation to submit offers, not an offer itself.
C)a statement of future intent, not an offer.
D)a price list, not an offer.

Question 53

Simone offers Tom a dozen guitar lessons for a certain price per lesson but conditions the deal on Tom accepting the offer by April 1. Simone may revoke the offer

A)before Tom accepts it.
B)before April 1, whether or not Tom has accepted it.
C)only after Tom accepts it.
D)only after April 1.

Question 54

Bo admires Cid's collection of coins. Bo asks, "Will you sell it?" This statement is

A)an offer.
B)not an offer, because it is an invitation to negotiate.
C)not an offer, because it is an expression of intent.
D)not an offer, because it is a request.

Question 55

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is

A)an offer.
B)an invitation to negotiate, not an offer.
C)an ad, not an offer.
D)a request, not an offer.

Question 56

Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

A)a post on the website.
B)any of the choices.
C)payment of the reward.
D)apprehension of the criminal.

Question 57

Lon says to Misty, "I would like to sell you my sofa." This statement is

A)an offer.
B)an invitation to negotiate, not an offer.
C)an ad, not an offer.
D)a request, not an offer.

Question 58

For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least

A)accurately precise.
B)reasonably definite.
C)unequivocally approximate.
D)vaguely uncertain.

Question 59

Rena asks Sully, "Do you want to pay me to repair your forklift?" This is

A)an offer.
B)not an offer, because the terms are not definite.
C)not an offer, because Rena did not express an intent.
D)not an offer, because Sully did not respond.

Question 60

Khe says, "I plan to sell my Apple stock." This is not an offer because

A)the statement is not addressed to a specific offeree.
B)the offeror has only committed to negotiate the terms in good faith.
C)a statement of future intent to do something in the future is not an offer.
D)an expression of opinion does not indicate an intent to enter into a deal.

Question 61

Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. Between Shipping and its customers, the UETA applies if the parties agree to conduct transactions by

A)electronic means.
B)paper documents.
C)any of the choices.
D)verbal communication.

Question 62

Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is

A)in transit.
B)received.
C)sent.
D)written.

Question 63

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

A)a partnering agreement.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)a browse-wrap term.

Question 64

Gaia tells Franco that she will pay him $50 to haul lawn debris from her property. Franco's acceptance is complete

A)as soon as he says he will do the job.
B)once he starts to work.
C)only after he hauls away the debris.
D)when he hears the offer.

Question 65

Business Software Corporation (BSC)sells business apps-wage, price, and inventory coordinating programs, for example-in different combinations and packages, at different prices, downloadable online. To complete a deal, a purchaser clicks on a button that, with reference to certain terms, states, "I agree." What is this agreement called? Do the parties have a binding, enforceable contract that includes the terms? Explain.

Question 66

Charter Company offers to provide an air-conditioned bus to Denny's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by

A)e-mail.
B)phone.
C)regular mail.
D)any of the choices.

Question 67

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

A)transact business electronically.
B)submit to the recipient's jurisdiction.
C)respond to e-mail sent to that address.
D)nothing.

Question 68

Vida, a user of phone-app.com's website, can download apps for free by first clicking on "I accept" after viewing certain terms. This is

A)a contract that does not include the terms.
B)a contract that includes the terms.
C)not a contract but the terms are enforceable.
D)unenforceable.

Question 69

Global Dispatch Corporation and Heavy Hauling Inc. agree in advance to terms that apply to their future e-transactions. This is

A)a partnering agreement.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)a browse-wrap term.

Question 70

Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when

A)received.
B)sent.
C)followed up by a confirmation letter sent by regular mail.
D)composed on a Reliable computer.

Question 71

To control specific offers for goods or services and thus the resulting contracts, important terms to provide online include

A)a provision relating to the resolution of any dispute.
B)a detailed history of the particular business.
C)positive reviews from customers or clients.
D)an updated list of the goods or services.

Question 72

On December 1, Petroleum Inc. sent Quito & Rosa (Q&R)a letter, via overnight delivery, offering to employ Q&R to review Petroleum's tax situation for the current year for $10,000. In the letter, the company stated that Q&R had ten days to accept. On December 5, Q&R sent an e-mail message that stated, "The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day, Smith & Taylor, a Q&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, Q&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why Q&R and Petroleum do, or do not, have a contract.