Deck 6: Offer and Acceptance

Question 1

What are the requirements of a valid offer? Explain. ​

Answer 1

A valid offer includes three requirements:
1. It must be definite: A contract will not be enforced unless the court can ascertain what the parties agreed to. The offeror's intentions are ascertained from the offer, and these intentions cannot be ascertained unless the offer is definite.Terms usually required to be stated would include who the offeree is; the subject matter of the offer; and the price, quantity, and time of performance.
2. It must appear to be seriously intended: One may make an offer in jest, banter, fear, or extreme anger, and if this fact is known or should be known by the offeree because of the surrounding circumstances, no contract is formed. There are times when the offer is not seriously intended, but the offeree has no way of knowing this. In that event, if the offer is accepted, a binding contract results.
3. It must be communicated to the offeree: Until the offeror makes the offer known to the offeree, it is not certain that it is intended that the offeree may accept and thereby impose a binding contract. Accordingly, the offeree cannot accept an offer until the offeror has communicated the offer to the offeree.

Question 2

A toy merchant's display of a doll house in a store window for $100 constitutes:

A)a firm offer on the part of the merchant to sell the doll house.
B)a binding contract between the merchant and the public.
C)an invitation to the public to make an offer for the doll house.
D)A quasi-contract between the merchant and the public.

Answer 2

C

Question 3

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the .

A)claimant
B)offeror
C)acceptor
D)summoner

Answer 3

B

Question 4

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect?

A)The offer will be rejected.
B)The offer will be revoked.
C)The inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked.
D)The inquiry will be considered a counteroffer.

Question 5

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

Question 6

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances.

Question 7

A firm offer can be best defined as:

A)an offer that cannot revoked for a reasonable time if no time is stated.
B)an offer that becomes invalid if payment is not made to the offeror.
C)a written document which has a seal in place of the merchant's signature.
D)a verbal promise to hold an offer open.

Question 8

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance.

Question 9

Which of the following is true of a binding contract?

A)It allows an offer to be revoked once the contract is formed.
B)It is created when an offeree accepts an offer that has been properly communicated.
C)It is considered valid when the offer made is indefinite in nature.
D)It is created when the offeror clearly shows an intention to make an offer.

Question 10

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

Question 11

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

A)Lily is still entitled accept the offer through legal action.
B)Lily can accept the offer within a period of ten days after Maya's death.
C)Lily must consider the offer automatically revoked and void.
D)Lily can claim that she was not aware of Maya's death and accept the offer.

Question 12

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated.

Question 13

Which of the following is true of a valid offer? ​

A)It is indefinite in nature.
B)It is instituted by the offeree to the offeror.
C)It is seriously intended.
D)It can be accepted by anyone who hears about it.

Question 14

An offer expresses the willingness of the offeror to enter into a contractual agreement. ​

Question 15

An offeree's response that rejects an offer by varying its terms is known as a(n).

A)counteroffer
B)option
C)circular
D)invitation

Question 16

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

Question 17

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law.

Question 18

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Question 19

Advertisements and catalogs are examples of general invitations.

Question 20

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n), and this type of offer cannot be revoked.

A)option
B)counteroffer
C)invitation to make an offer
D)definite offer