Accounting 324 ch 14 quiz

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances, _____. A. Shirley cannot make a counteroffer to Adam to buy the clock for $2,500 B. Felipe makes a new offer to Adam when he offers to buy the clock for $3,000 C. Felipe accepts the original offer made to Shirley when he accepts to buy the clock from Adam for $3,000 D. Adam cannot make a new offer to sell the clock for $3,500 to Felipe

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation? A. Louis has not accepted the offer as required by the offeror, and there is no contract. B. Louis has accepted the offer because an e-mail is a reasonable means of acceptance. C. The agreement between Louis and Amy will be valid but unenforceable. D. The acceptance by Louis will be presumed as an implied contract.

Louis has not accepted the offer as required by the offeror, and there is no contract.

Which of the following is true of the intent of an offeror to be bound by an agreement? A. An offeror expresses a willingness to be bound by an acceptance when he or she makes an invitation to negotiate. B. The courts interpret intent to contract only by the offeror's outward manifestations. C. In determining the offeror's intent to enter into a contract, the court does not consider whether the offeror has the legal capacity or not. D. The courts interpret intent to contract by the party's internal thought processes.

The courts interpret intent to contract only by the offeror's outward manifestations.

Which of the following is true of authorized means of acceptance of an offer? A. The means by which an offeree can communicate acceptance to an offeror cannot be implied from the facts and circumstances surrounding the communication. B. A reasonable means of communication is acceptable, even if the offer specifies that acceptance must be communicated by a specific mode. C. The means by which an offeree can communicate acceptance to an offeror can be expressly stated in the offer. D. If no mode of communication is specified in the offer, the offer is deemed void.

The means by which an offeree can communicate acceptance to an offeror can be expressly stated in the offer.

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event? A. When the offeror and the offeree are in an option contract that is still valid B. When the offeror loses the legal capacity to enter into a contract C. When the offeree has begun performance of the action necessary to accept a unilateral offer D.When the offeror decides to revoke the offer made to the offeree

When the offeror loses the legal capacity to enter into a contract

Which of the following conditions must be present for an offer to have a legal effect? A. Invitation to negotiate B. Definite and certain terms C. Neutral third parties D. Expression of interest in an exchange

definite and certain terms

When a counteroffer is made by an offeree, the original offer: A. is deemed accepted. B. is terminated. C. becomes a quasi-contract. D. becomes part of the counteroffer.

is terminated

Lucas is planning to buy a house owned by Janet. He gives her an initial amount of $10,000 to hold the offer open for a 45-day period. Janet will deduct the $10,000 from the purchase price if Lucas purchases the property within those 45 days. If he does not, Janet can keep the $10,000 and offer the house to another party. Which of the following contracts does this scenario best illustrate? A. Option contract B. Void contract C. Implied contract D. Executed contract

option contract

If an offer merely authorizes certain modes of acceptance but does not condition acceptance on the use of those modes, use of an unauthorized means of acceptance: A. makes the acceptance void and unenforceable. B. makes the acceptance valid even if it reaches a wrong address. C.results in a contract immediately upon the dispatch of the acceptance. D. results in a contract only after the acceptance is received by the offeror.

results in a contract only after the acceptance is received by the offeror.

Tracy offers Liam a job as a store manager at a liquor store, which she plans to open in a small property owned by her husband. The property is located near a school. Before Liam accepts the offer, the state passes a rule that liquor stores cannot be located within a five-mile radius of a school. In this scenario, the employment offer terminates due to: A. expiration of the option contract. B. subsequent illegality of the subject matter. C. lack of contractual capacity of the offeree. D. lack of genuine assent.

subsequent illegality of the subject matter.