Business Law Chapter 9

false

T/F a contract providing that Joe is to pay Bill "a fair share of the profits" will be enforced

false

T/F a simple rejection of an offer will terminate it

true

T/F acceptance is timely if it is made before an offer terminates

false

T/F an offer terminates when the time specified in the offer has passed and the offeror has given one last chance to the offeree to accept

false

T/F anyone who is aware of an offer can accept it and create a binding contract

false

T/F if an offeree is silent, he or she can never be considered to have accepted an offer

false

T/F offers that must be kept open for a period of time include advertisements

false

T/F the mirror image rules is an old rule that no longer applies

true

T/F the seriousness of an offeror's intent is determined by what a reasonable offeree would conclude was meant by the offerors words and actions

false

T/F there is no such thing as an irrevocable offer

mailbox rule

a rule providing that an acceptance of an offer becomes effective on dispatch

acceptance

a voluntary act by the offeree that shows assent or agreement to the terms of an offer

When neal sends the fax.

Cindy makes an offer to Neal in a fax. Neal indicates his acceptance in a return fax. Neal's acceptance is effective...

each bid is an offer that may be accepted or rejected

Digit Electronics places an ad announcing a sale of its inventory at public auction. At the auction, Digit's auctioneer points to an 80 inch 3D HDTV and asks, "What am i bid for this item?" Which of the following is true?

only when Sax begins the work

Ed sends to Sax, Inc, a written order for software to be specially designed offering a certain amount of money. If Sax does not respond, it can be considered to have accepted the offer...

Will you take 25,000?

Icon Properties Inc, makes an offer in a letter to Bob to sell a certain lot for 30,000 with the offer to stay open for 30 days. Bob would prefer to pay 25000, if Icon would sell at that price. What should Bob reply to Icon to leave room for negotiation without rejecting the offer?

"I accept. Please send a written contract."

Julio offers to sell Christine a used iPad for 400. Which of the following replies would constitute an acceptance?

None of the above

Kelly mails to Pat an offer to sell Pat her computer, stating tha pat has 30 days to accept. Pat immediately emails a letter of rejection. After reconsidering, pat mails a lettter of acceptance within the time permitted by the offer. Which of the following is true?

when Lynn sends the letter

Paul makes an offer to Lynn in a letter, saying nothing about how her accceptance should be sent. Lynn indicates her acceptance in a return letter. Lynn's acctptance is effective...

mirror image rule

a common law rule that requires, for a valid contractual agreement, that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer

option contract

a contract under which the offeror cannot revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer during this period

agreement

a meeting of two or more minds in regard to the terms of a contract

offer

a promise or commitment to perform or refrain from performing some specified act in the future

counteroffer

an offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer

can revoke the offer any time before Lee accepts

in a letter, vern offers to sell his car to Lee stating that the offer will stay open for thirty days. Vern...

revocation

the withdrawal of an offer by an offeror. Unless the offer is irrevocable, it can be revoked at any time prior to acceptance without liability