Ch. 10: Mutual Assent

Question 1

Offer

Answer 1

One party makes a proposal

Question 2

Acceptance

Answer 2

The party who agrees by words or conduct to the proposal

Question 3

Objective Standard

Answer 3

What a reasonable person under the circumstances would reasonably believe or do.

Question 4

Offeror

Answer 4

The person making the proposal

Question 5

Offeree

Answer 5

The person to whom the offer is made

Question 6

Without Reserve

Answer 6

Auctioneer may not withdraw the goods from the auction.

Question 7

Good Faith

Answer 7

Honesty in fact and the observance of reasonable commercial standards of fair dealing.

Question 8

Other than by Acceptance

Answer 8

Other ways a contract is terminated

Question 9

Good

Answer 9

All things (including specially manufactured goods) that are movable at the time of identification to a contract for sale other than the money in which the price is to be paid, investment securities, and things in action.

Question 10

Merchant

Answer 10

A person who is a dealer in goods of a given kind, who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.

Question 11

Rejection

Answer 11

The refusal to accept an offer

Question 12

Counteroffer

Answer 12

A counterproposal from the offeree to the offeror that indicates a willingness to contract but upon terms or conditions different from those contained in the offer.

Question 13

Conditional Acceptance

Answer 13

Purports to accept the offer but expressly makes the acceptance conditional upon the offeror’s assent to additional or different terms.

Question 14

Dispatch

Answer 14

A message, letter, or order sent with speed on affairs

Question 15

Mirror Image

Answer 15

An acceptance cannot deviate from the terms of the offer.

Question 16

Positive

Answer 16

Definate

Question 17

Lapse of Time

Answer 17

Offer remains open for the time period specified or, if no time is stated, for a reasonable period of time

Question 18

Revocation

Answer 18

An offer may be terminated at any time before it is accepted

Question 19

Death or Incompetency

Answer 19

Of either the offeror or the offeree terminates the offer

Question 20

Destruction of Subject Matter

Answer 20

Of an offer terminates the offer

Question 21

Subsequent Illegality

Answer 21

Of the purpose or subject matter of the offer terminates the offer

Question 22

General Rule

Answer 22

Acceptance effective upon dispatch unless the offer specifically provides otherwise or the offeree uses an unauthorized means of communication

Question 23

Stipulated Provisions

Answer 23

The communication of acceptance must conform to the specification in the offer

Question 24

Authorized Means

Answer 24

The Restatement and the Code provide that unless the offer provides otherwise, acceptance is authorized to be in any reasonable manner

Question 25

Unauthorized Means

Answer 25

Acceptance effective when received, provided that it is received within the time within which the authorized means would have arrived

Question 26

Acceptance Following a Prior Rejection

Answer 26

First communication received by the offeror is effective

Question 27

Defective Acceptance

Answer 27

Does not create a contract but serves as a new offer