ch. 12 Flashcards
On May 1 Meat Company offers to cure and smoke Natural Farm’s products, and promises to keep the offer open until June 1. On May 3 Meat mails Natural a letter revoking the offer. The farm receives the letter on May 5 and responds on May 6. The company’s revocation of the offer became effective on
May 6.
Lon says to Misty, “I would like to sell you my sofa.” This statement is
an invitation to negotiate, not an offer.
The offeror can revoke the offer only be expressing repudiating it.
False
Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is
a click-on agreement.
Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, “I’ll pay no more than $40,000.” Rafi’s offer is
terminated.
An offer can be accepted by the offeree or any third party.
False
An offer terminates automatically when the period of time specified in the offer has passed.
True
Vida, a user of phone-app.com’s website, can download apps for free by first clicking on “I accept” after viewing certain terms. This is
a contract that includes the terms.
Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by
any of the choices.
Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer
a reasonable period of time is implied.
An offer must express reasonably definite terms to be effective—no term may be reasonably inferred.
False
Shep offers to make digital copies of Reliable Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable’s acceptance by e-mail will be considered effective when
sent.
Rejection of an offer is effective only when it is actually received.
True
Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic’s authorized mode of communication, it will be effective when it is
received.
One element necessary for an effective offer is the offeror’s good faith belief in its reasonableness.
False
An offer made in undue excitement is an effective offer.
False
Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is
an ad, not an offer.
Khe says, “I plan to sell my Apple stock.” This is not an offer because
a statement of future intent to do something in the future is not an offer.
Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber Outlet accepts. Most likely, Kelly’s death
terminates the offer.
An invitation to submit bids is an offer.
False
Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to
transact business electronically.
Charter Company offers to provide an air-conditioned bus to Denny’s tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by
regular mail.
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.
True
Ordinarily, one can agree to a bargain without knowing that it exists.
False
