Offer

Question 1

What three things are required by the common law to constitute an offer?

Answer 1

1. Intent of the offeror to be bound
2. Specificity of persons empowered to accept
3. Definiteness of the terms of the offer (all material terms)

Question 2

What three type of terms are considered when evaluating the definiteness of an offer?

Answer 2

1. Material terms
2. Vague terms
3. Missing terms

Question 3

Which UCC section governs formation of contracts?

Answer 3

UCC Article 2-204

Question 4

What is required under UCC Article 2-204 for the formation of a contract?

Answer 4

1. Intent to be bound
2. Specificity of the offeree
3. A reasonably certain basis for providing an appropriate remedy

Question 5

Which CISG Article governs contract formation?

Answer 5

CISG Article 14

Question 6

What are the contract formation requirements under the CISG article 14?

Answer 6

1. Intent to be bound
2. Specificity of the offerees
3. Sufficiently definite price and quantity
4. A proposal is only an invitation to make an offer

Question 7

How can an offer be terminated prior to acceptance under the common law?

4 methods

Answer 7

1. Passage of time (conversation rule)
2. Revocation by the offeror
3. Rejection by the offeree
4. Death or incapacity of a party

Question 8

What is the conversation rule?

Answer 8

An offer made during a face-to-face or telephone conversation is deemed to have lapsed at the end of the conversation, absent a contrary intent of the offeror

Question 9

What is required for an indirect revocation?

Answer 9

1. A definite action by the offeror that is inconsistent with intent to contract with the original offeree
2. The information provided must be reliable

Question 10

When is rejection valid?

Answer 10

When received by the offeror.

Question 11

What are the two effects of a counteroffer?

Answer 11

1. Rejection of the original offer
2. Serves as a new offer

Question 12

How can termination be precluded under the common law?

Answer 12

1. Option contract
2. Reliance on a unilateral offer

Question 13

How can termination be precluded under UCC Article 2-205?

Answer 13

A firm offer

Question 14

What is required for a firm offer?

Answer 14

1. A signed writing by a merchant
2. States that it will be held open for a specific period of time (no greater than 3 mos.)
3. If on a form supplied by the offeree, must be separately signed by the offeror

Question 15

How can termination be precluded under the CISG Article 16?

Answer 15

1. The offer indicates it is irrevocable
2. The offeree reasonably relied on it being irrevocable

Question 16

What is the “advertising rule”?

Answer 16

An advertisement is not generally considered an offer; it is construed as an invitation to make an offer to the seller on the terms stated, which the seller may then accept or reject.

Question 17

What makes a term “material”?

Answer 17

1. It is a necessary term, without which there is no contract
2. It is an important term that affects the value of the bargain