Accounting 324 Ch.14

Parties to a contract can agree before hand that the silence is a form of _____

Acceptance

True or false: If the offeree makes a mistake and sends the acceptance to the wrong address, there is acceptance on dispatch.

False

Which of the following is an element in the formation of a contractual offer?

Offer must include serious intent by the offeror to be bound to an agreement.

Which party to a contract can revoke an offer at any time?

Offeror

Which party to a contract is said to be the "master of their offer"?

Offeror

Who has the power to decide by what means an offer can validly be accepted?

Offeror

Under the common law mirror-image rule, when is a counter offer formed?

When the offeree's acceptance does not include all of the terms of the offeror's offer

Parties to a contract can agree before hand that the silence is a form of _____

counter offer

In order for a court to recognize promissory _______, the offeree must have ______ relied on the promise of the offeror and taken action that has now caused some form of harm.

estoppel and subjectively

In this case, a(n) _______ contract is created when the offeree is silent but receives a legal benefit.

implied-in-fact

Promissory estoppel is the contractual concept that: _______.

one party reasonably relied on another's promise and due to that reliance, the court won't allow the revocation of the offer now

If no means of communicating an acceptance is specified, what means will be accepted?

Any reasonable means including telephone, mail, fax, email and in person communication.

If the offer does not make it clear how the offeree should respond, in what way can the offeree respond under the contract?

By giving the offeror a return promise as consideration By performing the required acts of the contract

An offeror may try to avoid being bound to a contract by later claiming she was only joking when she made the offer. Which of the following is an accurate statement regarding the willingness of a court to consider such evidence?

Courts are generally not interested in such evidence of hidden intent.

Promissory estoppel requires what form of contractual mindset?

Detrimental reliance on the offer

Under what circumstances will an offeror not be able to rescind a unilateral contract offer?

In instances where the offeree has already started to perform under the contract

The creation of a valid contractual offer requires what elements?

Intent of the offeror for an agreement, definite terms and offer communicated to offeree

What form of intent must an offeror have in creating a contractual offer?

Intent to be bound by the offeree's acceptance

Death of an offeror will have what effect on a contractual offer?

It will cause the offer to be terminated.

_____ terms allow a court to determine damages if one of the parties breaches the contract.

Material

______ terms allow a court to determine damages if one of the parties breaches the contract.

Material

Under common law, what types of terms must be included in a valid contractual offer?

Material terms, all major items necessary for mutual consent that are clearly laid out

If an acceptance is sent to the wrong address and never arrives at the correct address, then there is: ______.

No contract

What is the standard that courts use to interpret contracts?

Objective Standard

The name of the party initiating an offer for a contract is the: _______.

Oferror

Who can accept a valid offer that will create a binding contract?

Only the offeree or his or her agent

In a(n) ______ contract, the offeree gives _______ in return for the offeror holding the offer open and not revoking the offer for a specified period of time.

Option consideration

What are some things that could be material terms in a valid contract?

Parties involved Price of goods

If an offer is for a unilateral contract, the offeree can accept only by providing the requested performance. Suppose Bill offered to pay $500 to anyone who returned his lost dog to him. Mary could accept by:______.

Returning the dog.

As a general rule, a(n) ______ of an offer is effective when the offeree receives it.

Revocation and termination

As a general rule, what effect does silence have in formation of contracts?

Silence cannot be used to form a contract.

If a contractual offer becomes illegal, what is status of the offer?

The offer is immediately terminated

If the subject matter of a contractual offer is destroyed, then what is the status of the offer?

The offer is immediately terminated.

If an offer states that it is good for thirty days, what happens in thirty days if the offeree has not responded?

The offer terminates immediately.

If there is no stated period when the offeree must accept or reject an offer, when will the offer expire?

The offer will expire after a reasonable period of time.

Using the objective standard to establish contractual intent, courts are concerned with looking at which of the following?

The offeree or The agent of the offeree who is acting on behalf of the offeree

Which of the following is not a basic common-law requirement for a valid acceptance?

The offeree's written acceptance, dispatched by certified mail, to the offeror

A valid offer under common law requires which of the following elements?

You need the intent to be bound by an acceptance. The offer must be properly communicated to the offeree. There must be definite and certain terms.

If the 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 is: _______.

acceptable

In a(n) ______ contract, the offeror makes a promise in return for a promise from the offeree.

bilateral

Under common law, a valid contractual offer will be:_______.

certain in its terms definite in its terms

The ______ rule states that an acceptance is valid when mailed and a revocation is only effective when received.

mailbox

______ in the previous course of business dealings can create _______ of a contract under common law.

silence and acceptance

In an option contract, the offeree gives consideration to the offeror: _______.

to have an offer that cannot be revoked by the offeror for a period of time

As a general rule, a revocation is effective: _______.

when offeree receives the revocation