Offer

Question 1

What must an offer communicate?

Answer 1

An intent to enter into a contract.

Question 2

Are advertisements offers?

Answer 2

No, they are invitations for offers.

Question 3

What must be included in an offer involving real estate?

Answer 3

a description of the land and a price term

Question 4

What must be included in an offer involving the sale of goods?

Answer 4

a quantity term

Question 5

Requirements Contract

Answer 5

a buyer promises to buy from a certain seller all of the goods the buyer requires and the seller agrees to sell that amount to the buyer.

Question 6

Output Contract

Answer 6

a seller promises to sell to a certain buyer all of the goods that the seller produces, and the buyer agrees to buy that amount from the seller.

Question 7

The failure to state a price in a contract does not prevent the formation of a contract if the parties intended to form a contract without the price being settled, except for what kind of contract?

Answer 7

contracts involving real estate.

Question 8

If an agreement does not specify the time in which an act is to be performed, the law implies that it is to be performed . . .

Answer 8

within a reasonable time.

Question 9

How can uncertainty as to a vague term be cured?

Answer 9

by partial performance which clears up the ambiguous term

Question 10

What happens if a material term is ambiguous?

Answer 10

There is no offer.

Question 11

What is the effect of a material term being agreed upon at a later date?

Answer 11

There is no offer.

Question 12

To have the power to accept an offer, the offeree must have _________ of the offer.

Answer 12

knowledge

Question 13

An offer cannot be accepted after it has been ____________.

Answer 13

terminated

Question 14

A revocation is effective when _____________

Answer 14

received by the offeree.

Question 15

Does “received” mean that the recipient has actually read the communication?

Answer 15

No. A written communication is received when it is delivered to the place of business through which the contract was made. The recipient need not actually read the communication to have received it.

Question 16

Can an offeror revoke an offer he has promised not to revoke?

Answer 16

Generally, yes. However, there are exceptions.

Question 17

Option

Answer 17

a distinct contract in which the offeree gives the offeror consideration in exchange for the offeror’s keeping the offer open for an agreed upon period of time.

Question 18

Can an option be revoked prior to the end of the agreed on period?

Answer 18

No.

Question 19

Merchant’s Firm Offer

Answer 19

a signed writing from an offeror purporting to keep an offer open for a given period of time to an offeree. Basically these are options between a merchant and a buyer.

Question 20

How long can a merchant’s firm offer be held open?

Answer 20

3 months. They can agree to shorter or longer, but the merchant’s liability ends at three months. He can revoke at any time after three months despite having agreed for longer.

Question 21

Is consideration necessary for a merchant’s firm offer?

Answer 21

No, but offerees can support it with consideration.

Question 22

What is the effect of consideration in a merchant’s firm offer?

Answer 22

Where there is consideration for a merchant’s firm offer, the offer will be held open for however long the parties agree. The three month rule does not apply because consideration has been put down.

Question 23

Under the doctrine of detrimental reliance, when the offeror could reasonably expect that the offeree would rely on her detriment on the offer, and the offeree so relies, the offer will be held . . . .

Answer 23

as an irrevocable offer for a reasonable period of time.

Question 24

When does an offer for a true unilateral contract become irrevocable?

Answer 24

when performance has begun

Question 25

Is an offeree to a true unilateral contract bound to complete performance once she has begun?

Answer 25

No, because one does not accept a unilateral contract until performance has been completed.

Question 26

Substantial preparation to perform does not make an offer irrevocable. However, it could evince what?

Answer 26

detrimental reliance

Question 27

A bilateral contract may be formed upon . ..

Answer 27

the start of performance by the offeree.

Question 28

Express rejection _____________ the offer.

Answer 28

terminates

Question 29

A counteroffer by an offeree to an offeror is . . .

Answer 29

both a rejection and a new offer.

Question 30

Does inquiring about a price terminate an offer?

Answer 30

No.

Question 31

A rejection is effective when it is ___________.

Answer 31

received.

Question 32

Can options be terminated by a counteroffer?

Answer 32

No. Options are contracts to keep an offer open. The offeree is free to accept the offer at any time, even after making a counteroffer, so long as he accepts the original offer within the originally agreed upon period.