Chapter 10 Offers Flashcards
On May 3, Mary offered to buy Harvey’s house, and the offer was stated to be open for acceptance until 2:00 p.m. May 4. Which one of the following statements is FALSE?
(1) Mary can revoke her offer prior to 2:00 p.m. on May 4.
(2) Mary’s offer represents an option agreement.
(3) If Harvey makes any changes to the offer, Mary’s original offer is terminated.
(4) If Mary mails a notice of revocation to Harvey, the offer is only revoked if the notice is received by Harvey before he accepts.
2
A revocation of an offer is effective when:
(1) a notice of revocation is mailed.
(2) it is communicated to the offeree.
(3) it is reduced to writing.
(4) a notice of revocation is filed.
2
Which one of the following statements about the revocation of an offer is TRUE?
(1) If an offer has a specified time for expiry, it cannot be revoked prior to that time.
(2) Unless consideration is paid to keep an offer open for a specific time, revocation can be made at any time prior to acceptance.
(3) Revocation can be made prior to or after acceptance.
(4) The method of revocation must be exactly the same as the method used in the offer.
2
John makes the following offer to Mary. “I will pay you $500 to put a new rose bed in my garden.” If Mary accepts, what is the result?
(1) There is no contract because there is no consideration.
(2) The promise to pay is past consideration and therefore no contract exists.
(3) An enforceable contract has been formed if an intention to create a legal relationship exists.
(4) There is no contract because the contract is not in writing.
3
When a contract is executed under seal, the seal:
(1) constitutes a written acceptance.
(2) takes the place of the signature of the offeror and offeree.
(3) stands in the place of consideration.
(4) represents intention.
3
a seller, offers to sell a property to A for $50,000. The offer is to remain open for acceptance until noon the next day. At 11:00 a.m. (the next day) B offers to purchase the same property and S accepts. At 11:30, A accepts the original offer. Which of the following statements is TRUE?
(1) S has entered into a contract with both A and B.
(2) S could have revoked the offer to A and avoided the problem.
(3) Both A and B are entitled to contractual remedies against S under this scenario.
(4) All of the above three statements are true.
4
As a general principle, which one of the following is the proper method of communicating acceptance of an offer?
(1) in writing
(2) in the same form as the offer
(3) by registered mail
(4) by telephone
2
An invitation to treat is:
(1) a request for offers.
(2) a legal offer.
(3) a request for information.
(4) all of the above
1
Where an offer has been made by post, an acceptance by post will be effective:
(1) when posted.
(2) when received.
(3) when received, provided it is not lost in the mail.
(4) when posted, provided it is not lost in the mail.
1
A counter-offer has the effect in law of:
(1) leaving the original offer open for acceptance if the counter-offer is refused.
(2) terminating the original offer so that later it cannot be accepted.
(3) terminating all negotiations at that time.
(4) accepting the original offer.
2
An offer is released or expires when one or more of the following occurs:
A. The offeror decides to revoke his or her oral offer and mails a written revocation to the offeree before acceptance.
B. No time limit is specified in the offer but a reasonable time has passed without acceptance by the offeree.
C. The offeror dies or becomes insane before the offeree accepts the offer.
D. An offer is revoked by the offeror and the revocation communicated to the offeree before acceptance.
Which of the following is correct?
(1) All of the above statements are true.
(2) Only A, B and C are true.
(3) Only A and B are true.
(4) Only B, C and D are true.
4
Frank sends a letter to Joe saying, “I will sell you 200 dozen widgets for $1,200.” Before Joe receives the letter, he sends an email to Frank offering to buy “200 dozen widgets for $1,200.” Given this information, which of the following statements is true?
(1) Frank and Joe have formed a binding and enforceable contract.
(2) Because the requirement of writing contained in section 59 of the Law and Equity Act has not been complied with, a contract has not been formed.
(3) There has not been a valid offer and acceptance and therefore a contract has not been formed.
(4) Both (2) and (3) are true
3
Bernadette offers to purchase Steve’s home for $438,000. However, before Steve has a chance to respond to the offer, Bernadette advises that she is withdrawing the offer. Which of the following legal terms describes what has occurred?
(1) revocation
(2) rectification
(3) rescission
(4) none of the above
1
If an offer is made by mail and the acceptance is mailed, when is the acceptance effective?
(1) when it is received by the offeree
(2) when it is received by the offeror
(3) when it is posted
(4) from the date and time of the postmark on the envelope
3
Charlotte offered to sell her property to Dennis for $180,000. Dennis wired, “Send lowest cash price - will give $165,000 cash”. Charlotte replied, “Cannot reduce price”. Dennis then accepted the original offer but Charlotte refused to sell claiming that there was no contract. Which of the following statements is TRUE?
(1) Because Dennis’ first wire was a counter-offer, and therefore a refusal of Charlotte’s offer, there is no contract.
(2) Charlotte’s reply to Dennis’ first wire was, in effect, a counter-offer on the same terms as her original offer.
(3) Charlotte may successfully claim that her initial price of $180,000 was an “invitation to treat” and therefore she was entitled to refuse Dennis’ offer to pay that amount.
(4) Options (1) and (3) are both true
2
