Ch 10 Flashcards
counter offer
206
theres no contract for the counter offer
rejection
206-
express words or conduct by the offeree to reject an offer. rejection terminates the offer.
after termination a whole new contract has to be made.
communication of offer
203- false
rewards
204- false
if you are not aware of the reward you can not called upon to it
intent to make an offer
202
asking who wants to pay $500 is not making an offer, its an inquiry
mirror image rule
210 -true
the offer must accept the terms as stated in the offer
rejection and revocation -when effective
211- false
after it was recieved
when sent
acceptance -when effective
211
an acceptance is effective when it is dispatched, even if it is lost in transmission.
Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: “To the members of the Antlers–Special this month. I will resod your lawn for $4.00 per square foot using Fairway brand sod. This offer expires July 15.”
The notice also included Ames’s name, address, and signature and specified that the acceptance was to be in writing.
Bates, a member of the Antlers, and Cramer, the janitor, read the notice and were interested, Bates wrote a .letter to Ames saying he would accept the offer if Ames would use Putting Green brand sod. Ames received this letter July 14 and wrote to Bates saying he would not use Putting Green sod. Bates received Ames’s letter on July 16 and promptly wrote Ames that he would accept Fairway sod. Cramer wrote to Ames on July 10 saying he accepted Ames’s offer.
By July 15, Ames had found more profitable ventures and refused to resod either lawn at the specified price. Bates and Cramer brought an appropriate action against Ames for breach of contract. Decisions as to the respective claims of Bates and Cramer?
No contract between Ames and Bates–because Bates’s first response to Ames’s offer was a counter offer which terminated Ames’s offer to Bates
No contract between Ames and Cramer–as Ames’s offer was made to members of the Antlers and Cramer was not an Antler, but rather the janitor
Justin owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Justin made written signed offers to sell the four boats in the order named for $4,200 each to Charles, Diane, Edward, and Fran, respectively, allowing ten days for acceptance. In which, if any, of the following four situations was a contract formed?
a. Five days later, Charles received notice from Justin that he had contracted to sell Porpoise to Mark. The next day, April 8, Charles notified Justin that he accepted Justin’s offer.
b. On the third day, April 5, Diane mailed a rejection to Justin that reached Justin on the morning of the fifth day. At 10 A.M. on the fourth day, Diane sent an acceptance by telegram to Justin, who received it at noon the same day.
c. Edward, on April 3, replied that he was interested in buying Providence but declared the price appeared slightly excessive and wondered if, perhaps, Justin would be willing to sell the boat for $3,900. Five days later, having received no reply from Justin, Edward accepted Justin’s offer by letter, and enclosed a certified check for $4,200.
d. Fran was accidentally killed in an automobile accident on April 9. The following day, the executor of her estate mailed an acceptance of Justin’s offer to Justin.
If you assume Justin is not a merchant:
a. No contract–offer revoked
b. Contract–the acceptance was received before the rejection was received
c. Contract–inquiry not a rejection or counter offer. Offer is thus still
open and acceptance mailed before the offer expired
d. No contract–death terminated the offer
If you assume Justin is a merchant, then the only answer that changes is “a.” because the offer is a firm offer and can not be revoked during the 10-day period.
Scott, manufacturer of a carbonated beverage, entered into a contract with Otis, owner of a baseball park, whereby Otis rented to Scott a large signboard on top of the center field wall. The contract provided that Otis should letter the sign as Scott desired and would change the lettering from time to time within forty-eight hours after receipt of written request from Scott. As directed by Scott, the signboard originally stated in large letters that Scott would pay $100 to any ballplayer hitting a home run over the sign.
In the first game of the season, Hume, the best hitter in the league, hit one home run over the sign. Scott immediately served written notice on Otis instructing Otis to replace the offer on the signboard with an offer to pay $50 to every pitcher who pitched a no-hit game in the park. A week after receipt of Scott’s letter, Otis had not changed the wording on the sign; and on that day, Perry, a pitcher for a scheduled game, pitched a no-hit game and Todd, one of his teammates, hit a home run over Scott’s sign. Scott refuses to pay any of the three players. What are the rights of Scott, Hume, Perry, and Todd?
If Hume was aware of the offer before hitting the home run, he is entitled to $100.
If Todd was aware of the offer before hitting the home run and was not aware the offer was supposed to be revoked, Todd is entitled to $100.
If Todd is entitled to $100, then Scott can recover $100 from Otis.
Perry is not entitled to $50 even if he is aware that the offer was supposed to be made as the offer had not been made in the manner intended by Scott.
