TERMINATION-UCC

Question 1

1. Contracts under U.C.C. Article 2-“Firm Offers”

Answer 1

a. Under the U.C.C. a merchant can make a firm
offer [which is irrevocable] to either buy or sell goods without consideration, as long as:
i. The offer is made by a merchant;
ii. The offer is made in writing signed by the
merchant;
iii. The offer expressly states by its terms
that it will be held open;
1. Firm offer will be irrevocable
for no more than three months. After three months, the offer will become revocable, but still enforceable.

Question 2

Option Contracts

Answer 2

a. A promise that meets requirements for
contract formation.
b. Limits power to revoke an offer
c. Buyer/seller exchange time for money
d. Consideration requirements more lenient than other contracts

Question 3

An offer seeking promissory acceptance is an offer to
enter into a bilateral contract.

Answer 3

The offer is revocable until the offeree makes the requested promise, thus binding both parties by the terms of the contract.
a. Where an offer doesn’t specify whether it must be accepted by a promise or performance, the offeree may choose the means of acceptance [default is bilateral.] However, the circumstances may make it clear that a performance is required.

Question 4

REJECTION- UCC rejects the Mirror Image Rule, and

Answer 4

recognizes a binding contract despite the presence of a nonconforming acceptance in two sets of circumstances:
1. The shipment of nonconforming goods and the bottle of the forms.