Offer

Question 1

Offer

Answer 1

The manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent it invited to that bargain and will conclude it.

Question 2

Objective Theory

Answer 2

Would a reasonable person expect to be bound from the promisor’s words or conduct and did the promisee so believe

Question 3

Price Quote Rule

Answer 3

A mere quotation or statement of a price or prices and an invitation to enter into negotiations are not offers which may be turned into binding Ks upon acceptance. Such proposals are merely suggestions to induce offers.

Question 4

Ad Rule

Answer 4

Ads of goods are not ordinarily intended or understood as offers to sell.

Question 5

Rejection

Answer 5

An officer’s power of acceptance is terminated by his rejection of an offer, unless he has manifested a contrary intention to take it under further advisement.

Question 6

Direct Revocation

Answer 6

Power of acceptance is terminated when the offeree receives from the offerror a manifestation of intent not to enter into the K

Question 7

Indirect Revocation

Answer 7

Power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed K and the offeree receives reliable information to that effect.

Question 8

Lapse

Answer 8

If not definite time is stated, then the offer will lapse after a reasonable amount of time. Face to face offers, usually lapse after the conversation.

Question 9

Option K

Answer 9

An option K is a binding agreement for the time period if supported by consideration and may not be revoked. If it is not supported by consideration, then it is only a mere off to sell and revocable.

Question 10

UCC Firm Offe Rule 2-205

Answer 10

An offer by a merchant to buy or sell goods in a signed writing by its terms gives assurance that it will be held open is not revocable for lack of consideration during the time stated. If no time is stated then it is for a reasonable time.