Deck 11: Agreement

Question 1

A contractor's submis?sion of a bid on a construction project is an acceptance.

Answer 1

False

Question 2

An advertisement is generally considered an invitation to negotiate.

Answer 2

True

Question 3

An invitation to negotiate-"can you afford this?"-is an offer.

Answer 3

False

Question 4

An offeror's subjective intent determines the validity of an offer.

Question 5

A valid offer requires reasonably certain terms.

Question 6

In an auction, the auctioneer is an offeree.

Question 7

A seller offering goods for sale in an auction through an auctioneer will create a binding contract.

Question 8

An agreement to agree may be enforceable.

Question 9

An offer is sufficient to evidence an agreement.

Question 10

A valid offer requires a reasonable price related to market value.

Question 11

In an auction, the auctioneer is an offeror.

Question 12

An acceptance is sufficient to evidence an agreement.

Question 13

An expression of opinion-"your customers will like this"-is an of?fer.

Question 14

An advertisement-"this property for sale"-is an offer.

Question 15

Revocation of an offer made to the general public must be com?muni?cated in the same manner in which the offer was communicated.

Question 16

The communication of an offer can be done by any effective means.

Question 17

A contract lacking a quantity term may not be enforceable.

Question 18

A person who does not know about a reward can still claim it.

Question 19

A price list is considered an offer.

Question 20

The communication of an offer must be by mail or in person.

Question 21

Revocation normally must be communicated to the offeree before accep?tance or else it will be ineffective.

Question 22

In a bilateral contract, communication of acceptance is necessary.

Question 23

There are no revocable offers.

Question 24

A counteroffer does not terminate but continues an offer.

Question 25

The death of a party to a contract will always result in the automatic ter?mination of that contract.

Question 26

An offer that a statute makes illegal terminates only af?ter a rea?sonable time.

Question 27

An acceptance terminates an offer.

Question 28

In most states, revocation is not effective until the offeree receives it.

Question 29

An acceptance must adhere exactly to an of?fer to create a contract.

Question 30

If the subject matter of an offer is destroyed, the offer will continue to ex?ist for a rea?son?able time to permit the seller to acquire replacement goods.

Question 31

An acceptance that materially changes a term in the offer still creates a valid agreement.

Question 32

If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time.

Question 33

If an acceptance of an offer is received after the offer has been rejected, there is no contract.

Question 34

In most states, revocation is not effective until the offeree receives it.

Question 35

To exercise the power of acceptance, an offeree must accept unequivocally.

Question 36

An offeror can revoke an option contract at any time.

Question 37

Rejection of an offer terminates it.

Question 38

An offeror can revoke an option contract if the offeror decides that the con?sideration given is inadequate.

Question 39

Under the mailbox rule, an acceptance is not valid until it is received.

Question 40

No offer can be accepted by silence.

Question 41

John says to Kris, "I would like to sell you my sports memorabilia collec?tion." This is not an offer because it

A) does not describe the subject matter specifically.
B) does not include a price term.
C) only expresses an opinion.
D) only invites Kris to negotiate.

Question 42

An officer of International Sales Corporation makes overtures to a repre?sentative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever

A) the officer subjectively intended them to mean.
B) a reasonable person in the officer's position would think they meant.
C) a reasonable person in the representative's position would think they meant.
D) the representative subjectively thought they meant.

Question 43

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind, she can withdraw her collection

A) only before the auctioneer announces that the items are sold.
B) only before the auctioneer delivers the items to the buyers.
C) under no circumstances.
D) within thirty days after the auction.

Question 44

Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local's

A) assumptions.
B) beliefs.
C) intentions.
D) words and conduct.

Question 45

Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is

A) a valid offer.
B) not a valid offer because the terms are not definite.
C) not a valid offer because Yvon did not state an intent.
D) not a valid offer because Zack did not respond.

Question 46

May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is

A) a valid acceptance because May is seriously frustrated.
B) a valid acceptance because Nick is a car dealer.
C) not a valid acceptance because May does not seriously intend to sell.
D) not a valid acceptance because Nick is a car dealer.

Question 47

Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to de?termine if a contract has been breached, under the common law, the offer must include terms that are

A) exactly precise.
B) reasonably definite.
C) unequivocally approximate.
D) vague or uncertain.

Question 48

Eve tells Frank that she would like to buy his Great Goodies store. Frank declines, but later decides to sell and sends to Eve, and others, a flyer describing the de?tails. Eve responds with a letter of "acceptance." Eve and Frank have

A) a contract.
B) no contract, because Frank sent the letter to more than one party.
C) no contract, because Frank was only inviting bids.
D) no contract, because the letter was an invitation to negotiate.

Question 49

Jill tells Ken, who has no knowledge of literary comedy, that she will tutor him 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 Jill's tutoring will be subjective.
D) not effective, because Ken has no knowledge of the subject.

Question 50

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is

A) a contract for the sale of the building.
B) a contract to consider the offer before any others.
C) a contract to negotiate a sale of the building.
D) no contract.

Question 51

Geof owns two cars. He offers to sell the Honda for $20,000 to Ilsa, who says, "I'll pay no more than $15,000." Geof offers to sell the Jeep for $20,000 to Kiki, but before Kiki responds, Geof says, "Forget it. I changed my mind." Geof's offer was terminated by

A) Geof and Ilsa.
B) Geof only.
C) Ilsa only.
D) neither Geof nor Ilsa.

Question 52

Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property

A) only before the auctioneer announces that the ranch is sold.
B) only before the auctioneer delivers the deed to the buyer.
C) under no circumstances.
D) within thirty days after the auction.

Question 53

Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "person?alized" letter inviting him to buy any item in the catalogue at the advertised price. This is

A) an offer because of the "person?alized" letter.
B) an offer because there is no room for price negotiation.
C) an offer only if Dean previously bought items from CSI.
D) not an offer.

Question 54

Bob offers to sell Carol his computer but conditions the sale on Carol ac?cepting the offer by May 1. Bob may revoke the offer

A) before Carol accepts the offer.
B) before May 1, whether or not Carol has accepted the offer.
C) only after Carol accepts the offer.
D) only after May 1.

Question 55

Beth goes to Dr. Carl for surgery. Carl says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is

A) liable.
B) not liable, because surgery is not a proper sub?ject for a contract.
C) not liable, because the statement was an opinion.
D) not liable, but Beth is excused from paying Carl.

Question 56

Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is

A) liable to Rapid for breach of contract.
B) liable to Speedy for breach of contract.
C) not liable, because the sale revoked the offer to Rapid.
D) not liable, if Quick offers substitute goods to Rapid.

Question 57

Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if

A) Alan does not communicate it to Carol.
B) Alan secretly does not intend to be bound by the offer.
C) Carol is not capable of accepting the offer.
D) the terms of the offer are not reasonably definite.

Question 58

Dona and Eden sign a lease that includes a clause permitting Dona to ex?tend the lease at an amount of rent to be agreed on at the time of the ex?ten?sion. The clause is

A) enforceable, because it is part of a lease.
B) enforceable, if the parties intend the clause to be binding.
C) not enforceable, because it does not include a price term.
D) not enforceable, because it is not in the right form.

Question 59

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re?ward because he

A) did not confer a benefit on Elmo by returning the dog.
B) did not know of the reward when he found and returned the dog.
C) does not need the money.
D) returned the dog.

Question 60

Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

A) an acceptance of an offer.
B) an invitation to accept an offer.
C) an offer.
D) a statement of future intent.

Question 61

Fine Mining Corporation offers to sell Great Foundries, Inc., seven tons of aluminum. Great Foundries sends an acceptance via Fine Mining's authorized mode of communication. This acceptance is effective when it is

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

Question 62

Kim sends an offer to Leo to cut down and remove a tree for $400. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to

A) accept the offer.
B) make a counteroffer.
C) reject the offer.
D) none of the choices.

Question 63

Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is

A) terminated.
B) valid for a reasonable time to give Java a "second chance."
C) valid for the period of time prescribed by a state statute.
D) valid until ICBI revokes the offer.

Question 64

Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will be

A) effective because Kit did not build the dock.
B) effective because Kit did not know that Liu would build a dock.
C) ineffective because Liu justifiably relied on Kit's offer.
D) ineffective because Liu showed a serious intent to close the deal.

Question 65

Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by

A) Evan and Gwen.
B) Evan only.
C) Gwen only.
D) neither Evan nor Gwen.

Question 66

Dora, an architect, markets her services through Eagle Designs, an ar?chitectural firm. For all intents and purposes, Dora is the firm. She of?fers to design a store for Fine Stores Corporation for $10,000. Before Fine ac?cepts, Dora dies. Fine's officers do not learn of the death until after they accept. What is the status of the offer?

Question 67

Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete

A) as soon as Frank says he will unload the truck.
B) once Frank starts to unload the truck.
C) only after Frank unloads the truck.
D) when Frank hears Eve's offer.

Question 68

Quality Vehicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck has been sold to State Trucking, Inc. Quality is

A) liable to Regional for breach of contract.
B) liable to State for breach of contract.
C) not liable, because the sale revoked the offer to Regional.
D) not liable, if Quality offers a substitute truck to Regional.

Question 69

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

A) after a reasonable period of time.
B) after a typical work week (five business days).
C) after a usual month (thirty calendar days).
D) never.

Question 70

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information lead?ing to the apprehension of a certain criminal. CCS could normally terminate the offer by placing

A) a full-page ad in the paper and a thirty-second commercial on the local station.
B) a notice in the "Legal Announcements" section of the paper.
C) a notice to the news department of the local stations.
D) any of the choices.

Question 71

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina 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 72

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejec?tion first, then changes his mind and sends an acceptance. Whether they have a contract is determined by

A) Kyle's rejection.
B) Kyle's subjective intent.
C) whatever Jane decides.
D) whether Kyle's rejection or acceptance is received first.

Question 73

State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is

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

Question 74

First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank have

A) have a contract for a loan at 15 percent interest.
B) have a contract for a loan at 12 percent interest.
C) have a contract for a loan at 0 percent interest.
D) no contract for a loan.

Question 75

Optimal Sales Corporation plans to move to a new office. Optimal offers to sell its office furniture to Plentiful Marketing, Inc., but does not specify a time for Plentiful to respond. The offer expires

A) after a reasonable period of time.
B) after thirty days.
C) after thirty minutes.
D) never.

Question 76

Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re?quired urgently. It would be most reasonable for Unified to accept via

A) a fax, a letter, or a phone call to TF within two weeks.
B) a fax sent to TF as soon as the offer is received.
C) a letter mailed to TF within two days.
D) a phone call to TF within five business days.

Question 77

Alan offers to transfer Beth's videotapes to CDs for $500. The mailbox rule will not apply if Beth accepts the offer by

A) e-mail.
B) messenger.
C) regular mail.
D) telegram.

Question 78

Eagle Warehouse offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest ac?cepts. Eagle must obtain

A) a forklift for Forest, if Eagle's insurance covers the loss.
B) a forklift for Forest, if it wants one.
C) nothing for Forest, because that would extend the time of the offer.
D) nothing for Forest, because the theft termi?nated the offer.

Question 79

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

A) creates an illegal contract by adding a clause to BPI's offer.
B) makes the offer irrevocable for three days if BPI accepts.
C) negates BPI's offer by changing the price term.
D) voids BPI's offer by extending the time term.

Question 80

New Cell Phone Company offers to buy a laser printer, with a case of paper and an extra car?tridge, from Office Products, Inc. (OPI), for $200. Paul, OPI's representative, says, "Okay, but no paper and no extra car?tridge." Paul 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.