Deck 10: Creating a Contract: Offers

Question 1

An offer by itself does not include terms that limit its life.

Answer 1

False

Question 2

The modern trend is for courts to tolerate more open and missing terms in offers.

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

Which of the following authorities requires that,at minimum,the terms of the offer must be sufficiently clear so that what was promised can be determined?

A)The UCC only.
B)The common law and the Restatement.
C)The UCC and the Restatement.
D)The CISG and the UCC.

Question 5

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:

A)a quasi-contract.
B)an offer.
C)an invitation to negotiate.
D)an invitation to bid.

Question 6

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

Question 7

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.

Question 8

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.

Question 9

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

A)how the offer was made.
B)whether the offeror has communicated it to the offeree.
C)the intent of the parties subjectively.
D)the status of the person who has made the offer.

Question 10

The courts have generally held that ads for the sale of goods at a specified price are treated as invitations to negotiate or to make an offer.

Question 11

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.

Question 12

Courts have traditionally said they are contract makers,not enforcers.

Question 13

The timing of prior dealings is relevant when determining a reasonable time for acceptance,if the parties have dealt with each other on a regular basis.

Question 14

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

Question 15

Kyle offered to sell Pam 500 television sets.Kyle is the:

A)offeree.
B)agent.
C)offeror.
D)distributor.

Question 16

An offeree who makes an inquiry about the terms of the offer has made a counteroffer,and has terminated the offer by rejecting it.

Question 17

Which of the following must be present for an offer to have a legal effect?

A)Invitation to offer
B)Communicating the intention to make an offer
C)Invitation to negotiate
D)Definiteness

Question 18

If an offeree accepts the offer but complains about the terms of the offer,a rejection is implied.

Question 19

The CISG is similar to the UCC in that it considers an offer sufficiently definite if it lacks price terms.

Question 20

In a bidding process the owner of the project or a general contractor who wants to farm out a portion of a large job to a subcontractor are generally held to have made an invitation to offer.

Question 21

The doctrine of promissory estoppel does not require:

A)a promise.
B)a significant reliance on a promise.
C)an injustice as a result of reliance.
D)a consideration.

Question 22

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

A)It must contain assurances that it'll be revocable.
B)The offeror must be a merchant.
C)It must have been made orally.
D)It is revocable for the period of time stated in the offer.

Question 23

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

A)giving everyone who sees the ad the power to bind into a contract
B)solicitation of an offer
C)an unfair offer
D)invitations to negotiate

Question 24

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:

A)the offer has been effectively communicated.
B)the offer has been conditionally tendered.
C)the offer has not been communicated.
D)the offer violates the UCC's rule against third-party interveners in quasi-contracts.

Question 25

In an option contract:

A)a separate contract for the limited purpose of holding the offer open is created.
B)the offeree is bound to accept the offer.
C)a joint contract is created for the limited purpose of keeping the offer open.
D)the offeree has purchased the right to accept within the stated period.

Question 26

When parties fail to expressly agree on the terms of a sales contract:

A)the contract is automatically void.
B)the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created.
C)the contract will not be enforceable under the UCC.
D)the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

Question 27

Advertisements for rewards,such as for the return of lost property,information,or the capture of criminals,are generally:

A)held to be invitations but not offers.
B)held to be offers for unilateral contracts.
C)held to be offers for bilateral contracts.
D)held to be firm offers.

Question 28

Advertisements are regulated outside of contract law by:

A)the UCC.
B)the Restatement.
C)the Federal Trade Commission.
D)the CISG.

Question 29

Which of the following statements about shrinkwrap contracts is true?

A)The label on the shrinkwrap states that by removing the shrinkwrap,the buyer accepts the terms of the software seller's licensing agreement.
B)Shrinkwrap contracts are enforceable even when the terms violate contract rules such as unconscionability.
C)The practice of using shrinkwraps never raises ethical problems like those involved in the use of small print,complex,or "hidden" language.
D)Critics point out that all the consumers understand the contract before accepting the terms and conditions. Generally,when a purchaser buys software,the software is in the form of a disk or CD.These disks are encased in plastic shrinkwrap and frequently bear a label stating that by removing the shrinkwrap,the buyer accepts the terms of the software seller's licensing agreement.This is known as "shrinkwrap contracting." Shrinkwrap agreements are enforceable unless the terms violate contract rules such as unconscionability.

Question 30

A subcontractor's bid:

A)is considered an offer.
B)can be revocable.
C)can be withdrawn even if the general contractor has relied on it.
D)is considered to be a part of a shrinkwrap agreement.

Question 31

In an auction:

A)acceptance occurs when an offeror makes the highest bid.
B)bidders are treated as offerors,making offers the seller is free to accept or reject.
C)an item cannot be withdrawn from sale prior to acceptance.
D)the seller is required to accept the final offer when the auction is advertised as being "with reserve."

Question 32

An offeree who attempts to accept after an offer has terminated is making:

A)an offer.
B)a solicitation.
C)a revocation.
D)a counteroffer.

Question 33

Under the UCC,a sales contract can be created:

A)if the contract is reduced to writing.
B)in any manner sufficient to show agreement,including conduct.
C)when the offeror forms subjective intent to contract.
D)when the contract contains the price terms.

Question 34

According to the CISG,an offer:

A)must be directed to a specific person.
B)must express the quality of the goods to be valid.
C)is not valid,if it impliedly provides means of determining the quantity of the goods.
D)is sufficiently definite,though it lacks the price terms.

Question 35

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:

A)Gavin is not allowed to revoke because the contract is unilateral.
B)Gavin is allowed to revoke,but is liable to Rod for the reasonable value of benefit received.
C)Gavin may not revoke because the contract is bilateral.
D)Gavin is allowed to revoke if he finds Rod's efforts half-hearted or ineffective.

Question 36

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)Linda's acceptance is effective and a contract is created.
B)Hunter's revocation is effective and no contract is created.
C)Promissory estoppel prevents the formation of a contract in this situation.
D)Since it is an option offer,it cannot be revoked.

Question 37

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

A)only as a last possible resort.
B)whenever possible.
C)in a way different from the approach taken by the "Restatement."
D)occasionally.

Question 38

Walter puts an ad in the paper as follows: "$500 reward for the return of my golden ring." Albrecht finds the ring and returns it to Walter,but he refuses to pay Albrecht the $500.Which of the following statements is true regarding this case?

A)Because the ad was merely a solicitation of offers,there was no contract until Walter accepted Albrecht's offer to find the ring.
B)Albrecht may not recover the money because he did not contact Walter before he began his search.
C)Because Albrecht did not pay Walter to keep the offer open,Walter is free to revoke and need not pay Albrecht anything.
D)The ad was an offer for a unilateral contract,which Albrecht accepted by returning the ring; Walter is therefore bound to pay Albrecht the $500.

Question 39

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:

A)the CISG must fill in the gaps only if the price terms are left in the agreement.
B)the party's intent to contract and CISG must fill in any gaps left in the agreement.
C)the UCC must fill in any gaps left in the agreement.
D)the intent to contract is absent,and no contract was created.

Question 40

If an offer does not state a time for acceptance,it is:

A)valid for a reasonable time,which depends on the circumstances of the offer.
B)valid for 10 days from the day the offer is made.
C)valid for 20 days from the day the offer is received by the offeree.
D)valid until the offeree accepts it.

Question 41

What is an offer? What are the three conditions necessary for the creation of an offer?

Question 42

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?

A)A written statement must be produced to the court of law,to terminate the offer.
B)If the offer is not revoked within a week after the incident took place,the offer is considered to be open and Jerry can claim the recovery charges.
C)Jerry must be paid the recovery charges for losing the house as he had already been offered by Brian.
D)The offer is terminated when the house is destroyed as it happened without the knowledge or fault of either of the parties.

Question 43

How do courts deal with the situation in which an offeror tries to revoke an offer for a unilateral contract after the offeree has begun acceptance,but before he has completely accepted the offer?

Question 44

Which of the following statements about offers is true?

A)Any definite offer made by a merchant is a "firm offer" under the UCC.
B)An offer is effective upon dispatch.
C)A grumbling acceptance is a rejection and terminates the offer.
D)The death of the offeror will terminate the offer immediately.

Question 45

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.

Question 46

Which of the following would terminate an offer without notice to the offeree?

A)Enactment of a statute making the contract illegal after acceptance.
B)Physical inability of the offeree to perform.
C)Promissory estoppel.
D)Insanity of either party.

Question 47

Stan read an ad in the newspaper which said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000.Stan went that night and correctly picked the winners.However,it turned out that the newspaper had made a mistake.The jackpot was $25,000,not $825,000.Therefore the track owners refused to pay the latter amount.If this ad is treated like offers of reward,can Stan collect the $825,000?

Question 48

What are the factors that influence the reasonable length of an offer?

Question 49

A counteroffer:

A)impliedly rejects an offer.
B)does not significantly alter the material terms of the contract.
C)is a mirror-image of the offer.
D)is an inquiry into the terms of the offer.

Question 50

Schwartz,a painter,offers to sell a painting entitled "The Riverside Damsel" to Grimgerde for $50.Grimgerde responds that she needs more time to think about Schwartz's offer.Then Schwartz dies and the value of the painting escalates.Grimgerde calls Schwartz's widow,Waltraute,and says "I accept Schwartz's offer." Which of the following statements is true?

A)There is a binding contract entitling Grimgerde to the painting.
B)There is a binding contract entitling Grimgerde to the painting if she did not know Schwartz was dead when she called Waltraute.
C)There is no binding contract entitling Grimgerde to the painting under any circumstances.
D)There is no binding contract entitling Grimgerde to the painting unless Grimgerde actually pays Waltraute the $50.