Is there a deal between the parties?

Question 1

Offer

Answer 1

1. One party clearly manifested willingness
2. to enter into contract
3. in such a way that offeree reasonably knows of willingness

Question 2

Does common law require a specified quantity in the offer?

Answer 2

Yes

Question 3

Does UCC require a specified quantity in the offer?

Answer 3

No

Question 4

What are three examples of invalid offers?

Answer 4

1. Preliminary negotiations
2. State of opinion/intention
3. Solicitations or advertisements

Question 5

When do preliminary negotiation become a contract?

Answer 5

Only after necessary material details have been agreed upon

Question 6

Is an oral agreement for a future written contract an offer?

Answer 6

No, not if either party intends not to be bound in absence of fully executed written contract

Question 7

When does a solicitation or advertisement become an offer?

Answer 7

Only when it is clear and leaves nothing for negotiation

Question 8

What is an example of a solicitation/advertisement that is an offer?

Answer 8

Reward

Question 9

Types of revocation (ways it can be revoked)

Answer 9

1. Death/incapacity
2. Unreasonable lapse of time
3. Direct revocation
4. Indirect revocation

Question 10

If deadline is specified in the offer, when is offer revoked?

Answer 10

Offer terminated at specified time

Question 11

If no deadline is specified in the offer, when is offer revoked?

Answer 11

Offer terminated after reasonable amount of time

Question 12

Direct revocation

Answer 12

Offeree receives notice from offeror of intent to not enter into proposed contract

Question 13

Indirect revocation

Answer 13

1. Offeror takes definite action inconsistent with an intention to enter into proposed contract AND
2. Offeree acquires reliable information to that effect

Question 14

Option contract

Answer 14

Promisee gives consideration in return promisor’s power to revoke offer is limited

Question 15

Option contract (in unilateral contract)

Answer 15

Automatically created when offeree begins performance

Question 16

Option contract (in bilateral contract)

Answer 16

Offer is held open for specified time if consideration is given by offeree

Question 17

Merchant’s firm offer

Answer 17

1. Offer
2. Signed promise to hold offer
3. For stated time, never longer than 3 months

Question 18

When is an offer irrevocable (four instances)?

Answer 18

1. Option contract
2. Merchant’s firm offer
3. Detrimental reliance
4. Partial performance

Question 19

Detrimental reliance (offer)

Answer 19

1. Offer which offeror should reasonably expect to induce offeree’s action or forbearance
2. That does induce such action or forbearance
3. Becomes binding as option contract when necessary to avoid injustice

Question 20

In what type of offer does partial performance make the offer irrevocable?

Answer 20

Unilateral = when offeree begins performance, offer becomes irrevocable

Question 21

What does rejection of offer do in common law?

Answer 21

Rejection terminates offer and power of acceptance

Question 22

Can an offer be revived?

Answer 22

Yes, by offeror’s renewal of offer

Question 23

Mirror image law (common law)

Answer 23

Unless acceptance is identical to offer, acceptance is considered a rejection

Question 24

Examples of rejection by mirror image law

Answer 24

1. Counteroffers
2. Conditional acceptance
3. Additional terms

Question 25

Under UCC, what are additional/different terms in an acceptance, if acceptance is not expressly made conditional and at least one party is a non-merchant?

Answer 25

Operates as an acceptance, with the additional/different terms becoming proposals for addition

Question 26

Under UCC, what are additional/different terms in an acceptance, if acceptance is not expressly made conditional and both parties are merchants?

Answer 26

Operates as an acceptance, with additional/different terms becoming part of the contract unless 1. additional terms materially alter the offer 2. notification of objection is given within reasonable time after receiving additional terms

Question 27

Under UCC, what are additional/different terms in an acceptance, if acceptance is expressly made conditional on additional/different terms?

Answer 27

Conduct by both parties is sufficient to establish a contract but they are only bound to terms they agreed upon

Question 28

If mode of acceptance is specified, how do you accept?

Answer 28

In manner specified

Question 29

UCC modes of acceptance in shipment contracts (when not specified)

Answer 29

1. Prompt promise to ship | 2. Shipment of nonconforming or conforming goods

Question 30

When do nonconforming goods not constitute acceptance?

Answer 30

Only when seller notifies buyer that shipment is offered only as accommodation to buyer

Question 31

Under common law, what are the modes of acceptance?

Answer 31

1. Promise 2. Performance 3. Silence

Question 32

What does a promise as acceptance require?

Answer 32

Requires that offeree complete every act essential to making of the promise

Question 33

What does performance as acceptance require?

Answer 33

Requires at least part of what offer requests be performed or tendered

Question 34

In essence, what does performance as acceptance operate as?

Answer 34

Return promise

Question 35

Mailbox rule

Answer 35

Acceptance is effective when sent, not when received

Question 36

What the exceptions to mailbox rule?

Answer 36

1. Option contract 2. Unauthorized means 3. Performance

Question 37

When is acceptance valid in an option contract?

Answer 37

Upon receipt

Question 38

When is acceptance valid by unauthorized means?

Answer 38

Upon receipt

Question 39

When is acceptance valid by performance?

Answer 39

If offeror cannot reasonably become aware of acceptance by performance, acceptance is valid upon proven notice

Question 40

In what three situations does silence operate as acceptance?

Answer 40

1. Offeree takes benefit of offered services with reasonable opportunity to reject them and reason to know they were offered with expectation of compensation 2. Where offeror has stated or given reason to understand that assent may be manifested by silence and offeree in remaining silent intends to accept 3. Where it is reasonable for offeree to notify offeror if he does not intend to accept, because of previous dealing or otherwise