Deck 6: Offer and Acceptance

Question 1

Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to notify the offeror of non-acceptance.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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.

Answer 3

A

Question 4

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 5

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 6

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 7

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

Question 8

According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.

Question 9

Which of the following is a requirement for the acceptance of an offer to be valid?

A) Acceptance of the offer must be made through a set of prescribed procedures.
B) The acceptance must be communicated by the offeree to the offeror.
C) The acceptance should be made through a mere mental intention to accept the offer.
D) Acceptance of the offer must be made after a binding contract has been formulated.

Question 10

What are the requirements of a valid offer? Explain.

Question 11

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

Question 12

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

Question 13

A valid offer is one that is indefinite.

Question 14

Advertisements and catalogs are examples of general invitations.

Question 15

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires 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

Question 16

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

Question 17

Which of the following is true of revocation of an offer?

A) The offeror can revoke an offer any time after a contract is formed.
B) The binding promise to hold an offer open can be revoked at will.
C) The offer is terminated by the lapse of the time specified in the offer.
D) The revocation of an offer should be communicated to the offeree after his assent.

Question 18

The offeree may make an inquiry about terms that differ from the offer's terms without rejecting the offer.

Question 19

Which of the following is true of offers and invitations?

A) Window displays and catalogs are examples of personal invitations.
B) Letters addressed to a specific person automatically makes them personal sales letters.
C) The general rule is that circulars are offers made to specific customers.
D) Circulars are invitations to the recipients to make an offer.

Question 20

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 makes a proposal to the offeror.
C) It is considered valid when the offer made is indefinite in nature.
D) It is created when the offeree clearly shows an intention to accept the offer.