Unit 3

Question 1

acceptance

Answer 1

an agreement to the terms of the offer 360

Question 2

offeree

Answer 2

person who accepts the offer

Question 3

offerer

Answer 3

person who proposes the offer

Question 4

intent to accept is demonstrate by ____ and/or _____.

Answer 4

word, conduct 361

Question 5

Mutual ______ is required for a contract to be valid

Answer 5

assent

Question 6

The traditional contract law rule is that and acceptance must be the ______ ______ of the offer.

Answer 6

Mirror image 362

Question 7

Any acceptance that includes new variance terms from the offer presented amounts to a _____ and a _______ of the original offer.

Answer 7

counteroffer, rejection 363

Question 8

mailbox rule

Answer 8

properly addressed and dispatched acceptances can become effective when they are dispatched 367

Question 9

Unilateral contract

Answer 9

The exchange of a promise for an act “mow my lawn and I’ll pay you $25” 370

Question 10

bilateral contract

Answer 10

The exchange of a promise for a promise 370

Question 11

what are the 2 bodies of law governing contracts

Answer 11

• common law

- Uniform Commercial Code (UCC) 325

Question 12

All states have adopted the UCC except ______, which has only adopted portions of it.

Answer 12

Louisiana 326

Question 13

Article 2 of the UCC applies to contracts for the sale of _____, but does not apply to sale of _______

Answer 13

goods, real-estate and other intangibles such as stocks and bonds because they do not constitute “goods” 326

Question 14

Unconscionable contract

Answer 14

One that is grossly unfair or one sided 330

Question 15

merchant

Answer 15

A person who regularly deals in the kinds of goods being sold, or pretends to have some special knowledge about the goods 330

Question 16

quasi-contract

Answer 16

Liability is the post when one party confers a benefit on another who knowingly accepts it and retains it under circumstances that make it unjust to do so without paying for it 331

Question 17

In quasi-contract cases, the plaintiff claims _____

Answer 17

“unjust enrichment” 331

Question 18

promissory estoppel: promise that a promisor should foresee is likely to induce _____, _____ on the promissor, and _____ as a result of that ______.

Answer 18

reliance, reliance, injustice, reliance 334

Question 19

promissory estoppel doctrine _______ require the plaintiff to demonstrate an ______

Answer 19

doesn’t, enforceable contract 335

Question 20

3 elements of an Offer

Answer 20

• present intent to contract on part of the offeror
• specificity or definiteness
• whether the alleged offer has been communicated to the offeree 340

Question 21

Major difference between the UCC and Common Law enforcement of contracts…

Answer 21

• The code is more concerned with rewarding people’s legitimate expectations then with technical rules.
• The common-law is more strictly adherent to technical rules exclusively. 329

Question 22

Generally speaking, advertisements for sale of goods at specified prices are ____ considered to be offers.

Answer 22

NOT

Note: a highly specific ad may be an offer however if it limits acceptance to a small number of offerees 345

Question 23

Advertisements offering rewards for lost property, information, or for the capture of criminals are generally treated as offers for _________

Answer 23

Unilateral contracts 347

Question 24

The general commonl law rule of revocation

Answer 24

Offerors may revoke their offers at any time prior to acceptance, even if they have promised to hold the offer open for a stated period of time….there are exceptions however 352

Question 25

exceptions to revocation

Answer 25

• Options: If the offeree pays to keep an offer open for a specified amount of time (down or holding payment)
• Offers for unilateral contracts: “If you mow my lawn, I’ll pay you $25. The offeror cannot revoke once the offeree has begun service.
• promissory estoppel
• Firm offers for the sale of goods: when the offer is made by a merchant in writing giving assurance that the offer will be kept open. 352

Question 26

When an offeree makes a counteroffer, they have in effect _______ the previous offer

Answer 26

impliedly rejected 354