Chapter 7 Review Flashcards
What is an offer
promise made by one person to do something if the other person performs an act or promise
Offeror
One who makes the offer
Offeree
One who accepts or denies the offer
Preliminary negotiation
A discussion between two parties that leads to making the offer
How does an offer end
Lapse of time Rejection Counteroffer Revocation Death or Insanity Illegality Impossibility
Acceptance
a legally binding agreement is reached when the offeree accepts the offer made by the offeror
What is the “Mailbox rule”
Once the offeree accepts the offer and places it in the mail in responds to the offeror the contract is binding
Facsimile Transaction
The transmittal of a document by fax
Offeree silence in communication or action means acceptance
True or False
False
A contract will be enforced even if terms are not clear
False
The statement “I would like to sell my computer for $750”
False
To determine whether an offer has been made, the courts rely on the objective theory of contracts
True
A Counteroffer ends the original offer and replaces it with a new offer
True
As a general rule a person who is made an offer has a legal obligation to reply
False
Adams mails an offer to Baker on June 1. Baker receives the offer on June 2. Adams mails a revocation on June 3. Baker mails an acceptance on June 4. Baker receives the revocation on June 5. A contract was formed on?
a. June 2 b. June 3 c. June 4 d. June 5
June 4
