Termination

Question 1

An offer is good by the date stated or it may lapse if it is not accepted within ____.

Answer 1

A reasonable time

Question 2

Rejections that are counteroffers are those that____.

Answer 2

Contain the same subject matter as original offer, but differ in its terms

Question 3

Conditional acceptances are acceptances. T/F

Answer 3

False. It’s a rejection and new offer, and original offeror may expressly assent to new terms.

Note: this new offer cannot be accepted by performance

Question 4

Indirect revocation if: 3 elements

Answer 4

Offeree receives correct info

From a reliable source

Of offeror’s actions reasonably indicating revocation

Question 5

Revocation is generally effective when [received/mailed].

Answer 5

Received.

But note: when revoked by publication, it’s effective when published

Question 6

Irrevocable exceptions: 4

Answer 6

Option contract

Merchant firm offer

Detrimental reliance

Beginning performance in response to offer

Question 7

Option contract is one where the offeree gives _____ for offeror to _____.

Answer 7

Consideration; not revoke offer for a period of time

Question 8

Merchant firm offer requires a merchant to offer to buy/sell goods _____ and _____.

Answer 8

In a signed writing; the writing gives assurances that it will be held open (even with no consideration!)

Question 9

Firm offer rule is strict about who is a merchant. T/F

Answer 9

False; it’s pretty broad

Question 10

If no time is stated in merchant firm offer, it is irrevocable for a reasonable amount of time. T/F

Answer 10

True (no more than 3 months)

Question 11

If no consideration, a merchant firm offer can only be held open for ____, even if the offer states longer.

Answer 11

3 months

Question 12

If there’s consideration, a merchant firm offer is actually a(n) _____ and it can be held open for _____.

Answer 12

Option contract; however long the parties agree

Question 13

Detrimental reliance only enforces irrevocability when the offeror could _________ that the offeree would _____. The offer is held irrevocable as an option contract for a ____.

Answer 13

Reasonably expect; rely to their detriment on the offer.

Reasonable length of time

Question 14

Once an offeree starts performance, it makes the offer _____ for a _____.

Answer 14

Irrevocable; reasonable length of time to complete performance

Question 15

Death by either party will _____ a ____ offer.

Answer 15

Terminate; revocable