Offers

Question 1

What is an offer?

Answer 1

a manifestation of willingness to enter into a bargain that invites and justifies acceptance

Question 2

What are examples of things that are not considered valid offers?

Answer 2

preliminary negotiations, advertisements, and jokes

Question 3

What are examples of preliminary negotiations?

Answer 3

proposals, price quotes, and invitations to bed

Question 4

When is an advertisement considered a valid offer?

Answer 4

when it contains a promise to sell items in a reasonably certain manner that leaves no room for negotiation (specifies time, date, types of items)

Question 5

An offer made in jest is not valid if:

Answer 5

the offeree knew or should have known that the offer was a joke

Question 6

What are five ways in which an offer is terminated?

Answer 6

revocation, counteroffer, death, legal incapacity, lapse of time

Question 7

An offeror’s revocation must be:

Answer 7

communicated to the offeree

Question 8

What are two types of offers that cannot be revoked?

Answer 8

option contracts and firm offers

Question 9

When is an option contract created?

Answer 9

When the offeror gives the offeree the option to accept the offer for a limited time and the offeree provides consideration to the offeror

Question 10

When is a firm offer created?

Answer 10

When a merchant provides a signed writing assuring the offeree that an offer to buy or sell goods will be held open for a limited amount of time

Question 11

What is a counteroffer?

Answer 11

an offer, made by the offeree to the offeror, that proposes different terms relating to the same matter as the original offer

Question 12

the offeree refuses the offer

Answer 12

rejection

Question 13

What is a counteroffer?

Answer 13

the offeree makes a counteroffer proposing a different bargain regarding the same subject

Question 14

What are 6 ways to terminate an offer?

Answer 14

revocation, counteroffer, rejection, lapse of time, revocation, death or incapacity, destruction of subject matter

Question 15

What is an option contract?

Answer 15

an option guarantees, in exchange for something of value, that an offer will not be revoked for a specified amount of time (an offeree provides consideration in exchange for irrevocability) COMMON LAW

Question 16

What is a firm offer?

Answer 16

a firm offer guarantees that a merchant will not revoke an offer to sell goods for a specified amount of time UCC

Question 17

To form a contract, the offer must be ______, ________ to the offeree, and must not have _______ prior to acceptance

Answer 17

valid; communicated; terminated

Question 18

For an offer to contain reasonably certain terms, typically it identifies the ______, descries the _____ of the agreement, and includes some sort of _______

Answer 18

parties; subject; price term

Question 19

Does asking if the offeror might accept different terms constitute a counteroffer?

Answer 19

No if a reasonable person would know the original offer had not been rejected

Question 20

When a reasonable or specified amount of time has lapsed without acceptance, an offer _______.

Answer 20

terminates

Question 21

Revocation becomes effective when

Answer 21

the notice actually received by the offeree

Question 22

______ and _____ made in a signed writing are irrevocable

Answer 22

firm offers; option contracts

Question 23

A ___ ____ guarantees, in exchange for something of value, that an offer will not be revoked for a specified amount of time

Answer 23

option contract

Question 24

A _____ _____ guarantees that a merchant will not revoke an offer to sell goods for a specified amount of time (does not require consideration)

Answer 24

firm offer

Question 25

The offeror of a ______ contract may not revoke the offer after the offeree has begun performance

Answer 25

unilateral

Question 26

Once the offeree has begun performance, she is entitled to a ______ ___ for completion before the offeror may revoke

Answer 26

reasonable time

Question 27

In a unilateral contract, a contract is not formed until

Answer 27

performance of the offeree is complete

Question 28

An offer will automatically terminate when the subject matter of the offer is _____

Answer 28

destroyed

Question 29

When can the offeror not revoke an offer under detrimental reliance?

Answer 29

When the offeror should reasonably expect that the offeree may change position or do something in preparation for performance in detrimental reliance on the offer remaining open (may revoke after a reasonable period of time has passed)