Chapter Three - Agreement

Question 1

Objective Standard

Answer 1

Used to determine whether parties had “meeting of the minds,” looks to what a reasonable person would believe, based on circumstances

Question 2

Offer

Answer 2

An indication of current willingness to enter into a contract, communicated by the person making the offer

Question 3

Offeror

Answer 3

Party making the offer

Question 4

Offeree

Answer 4

Party receiving an offer

Question 5

Consideration

Answer 5

Something promised, given refrained-from, or done that has the effect of making an agreement a legally enforceable contract

Question 6

Open Terms

Answer 6

Also called “gap-filling” provisions; under the UCC a contract may form despite failure to specify certain terms

Question 7

Option

Answer 7

An offer, supported by consideration, may not be revoked at will

Question 8

Firm Offer

Answer 8

UCC rule; no consideration required to hold offer open between merchants

Question 9

Auction Without Reserve

Answer 9

A seller agrees to sell to the highest bidder and cannot revoke the offer to sell, even if bids are disappointingly low

Question 10

Rejection

Answer 10

Offeree terminates offer

Question 11

Counteroffer

Answer 11

Offeree responds to offer with an offer

Question 12

Operation of law

Answer 12

Events, including death, insanity, destruction of subject matter, and illegality, may terminate an offer

Question 13

Acceptance

Answer 13

Compliance or agreement by one party with the terms and of another’s offer so that a contract forms

Question 14

Mailbox Rule

Answer 14

Common law rule, acceptance occurs when dispatched by appropriate means

Question 15

Mirror Image Rule

Answer 15

Acceptance must be identical to offer

Question 16

Battle-of-the-Forms-Rule

Answer 16

UCC rule, overrides mirror image rule when merchants use forms