ACCT MODULE 14
In a bilateral contract, the offeror is expecting what action from the offeree? A return promise Expected performance by the offeree as required under the contract No action Payment in cash
A return promise
What is the term for an offer made by the offeree to the offeror proposing a substituted bargain differing from the original proposed offer? Promissory estoppel A qualified acceptance A revocation A counteroffer
A counteroffer
Identify a scenario where the parties have agreed that silence will be considered acceptance. The offeree makes an offer that states that if the response is not received within a certain duration, acceptance will be construed. A person has a library subscription that is renewed automatically unless he or she explicitly asks to stop the subscription. A person has a country club membership that has to be reevaluated every year before renewal. A person receives unsolicited product samples from a local store in the mail and decides to keep them.
A person has a library subscription that is renewed automatically unless he or she explicitly asks to stop the subscription.
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: _______. illegal unconscionable void acceptable
Acceptable
Parties to a contract can agree beforehand that silence is a form of ______. mirror-image rule unauthorized acceptance revocability acceptance
Acceptance
If no means of communicating an acceptance is specified in an offer, which of the following is generally true? The acceptance must be in writing. The acceptance must be made verbally either by telephone or in person. No valid contract may be entered into because the offer must specify a means by which to accept. Acceptance may be made by any reasonable means. Acceptance must be made orally or in writing within twenty-four hours.
Acceptance may be made by any reasonable means.
Why is an invitation to negotiate not an offer? An invitation to negotiate is an offer. An invitation to negotiate is not an offer because it does not express any willingness to be bound by an acceptance. An invitation to negotiate is not an offer because there is no way to determine the reasonable intent of the negotiating parties. An invitation to negotiate is not an offer because the invitation does not apply to a specific offeree. An invitation to negotiate is not an offer because an offer becomes an offer only when accepted.
An invitation to negotiate is not an offer because it does not express any willingness to be bound by an acceptance.
What type of contract allows the offeree a fixed amount of time to consider an offer without the offeror being able to revoke the contract during that fixed period of time? An option contract A sale-on-approval contract A unilateral contract A bilateral contract
An option contract
If no means of communicating an acceptance is specified, what means will be accepted? Only written means of communication are allowed. Any reasonable means, including telephone, mail, fax, email and in-person communication. If no means of communication is listed, the offer is not valid and no contract can be formed. Only in-person communication will be accepted for an acceptance.
Any reasonable means, including telephone, mail, fax, email and in-person communication.
In a(n) ______ contract, the offeror makes a promise in return for a promise from the offeree. (Check the BEST answer) bilateral unilateral executory formal
Bilateral
In general, what are the ways an offeree can manifest intent to enter into a contract? (Check all that apply.) By contacting the secretary of state's office to indicate that the requested offer is accepted By giving the offeror a return promise (e.g., a promise to pay contract value) By performance of the requested actions under the offer and the contract By having a general conversation about a proposed offer
By giving the offeror a return promise (e.g., a promise to pay contract value) By performance of the requested actions under the offer and the contract
If the offer does not make it clear how the offeree should respond, in what way can the offeree respond under the contract? (Check all that apply) By performing the required acts of the contract By unilaterally submitting the case to binding arbitration By giving the offeror a return promise as consideration By suing the offeror for breach of contract in civil court
By performing the required acts of the contract By giving the offeror a return promise as consideration
Regarding contractual offers, if an offeree changes his or her mind after dispatching a rejection by certified mail, what can the offeree do to ensure that the contract is formed? Communicate acceptance by another mode of communication before rejection reaches the offeror. Dispatch an acceptance via certified mail. Wait for the offeror to renew the offer. Disregard the current offer and make a counteroffer to the offeree.
Communicate acceptance by another mode of communication before rejection reaches the offeror.
Under the common law mirror-image rule, if an offer and acceptance do not have the exact terms in the contract, the acceptance is treated as a(n) _______. counteroffer valid acceptance, but the contract terms must be determined by the courts valid acceptance under the offeree's terms, which creates an enforceable contract valid acceptance under the offeror's terms, which creates an enforceable contract
Counteroffer
What are methods by which termination of a contractual offer can occur? (Check all that apply.) Counteroffer by the offeree The offeror refuses to spend the money that the offeree gives as part of acceptance and consideration The offeror can send notice to the secretary of state's office Revocation by the offeror
Counteroffer by the offeree Revocation by the offeror
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 receptive to such evidence if it relates to a contract for the sale of goods transaction. Courts are generally not interested in such evidence of hidden intent. Courts always are interested in hidden intent in contract interpretations. Courts are receptive to such evidence if it relates to a contract for the provision of services.
Courts are generally not interested in such evidence of hidden intent.
What conditions would legally cause an offer to be immediately terminated? (Check all that apply.) The offer becomes unprofitable to offeror Breach of the offer by the offeror Death of the offeror The offeror loses the legal capacity to be in a contract
Death of the offeror The offeror loses the legal capacity to be in a contract
Under which of the following situations does an offer immediately terminate? Revocation Revocation and rejection Death or incapacity of the offeror or illegality Revocation and death or incapacity of the offeror Illegality or lapse of time
Death or incapacity of the offeror or illegality
Promissory estoppel requires what form of contractual mindset? Detrimental reliance on the offer The parties wish to turn over rights in a contract to a 3rd party agent The contract must be profitable to be enforceable All parties are of the same mindset and no party has been harmed
Detrimental reliance on the offer
True or false: If the offeree makes a mistake and sends the acceptance to the wrong address, there is acceptance on dispatch.
False: In such a situation, there is no acceptance on dispatch; however, if a correction is made and the letter eventually reaches the offeror, the acceptance is valid on receipt, assuming the offer is still open.
Mary accepts Joe's offer to buy 100 comic books. She sends her acceptance via fax. Mary and Joe live in a jurisdiction that applies the majority rule. When does her fax become effective? Faxes are effective upon receipt. Faxes are effective upon dispatch. Faxes are effective as determined by the mailbox rule. Faxes are not a valid form of acceptance. Faxes are effective only if the contract expressly states they are effective upon receipt.
Faxes are effective upon receipt.
What type of contract is formed when the offeree receives the benefits of offered services with a reasonable opportunity to reject them and knows that some form of compensation is expected, yet remains silent? Implied-in-fact Unilateral Implied-in-law Express
Implied-in-fact
Under what circumstances will an offeror not be able to rescind a unilateral contract offer? If the contract is registered with the secretary of state's office In instances where the offeree has already started to perform under the contract Where the offeree has expressed that he or she will lose money if the contract is not executed If the offer is in writing
In instances where the offeree has already started to perform under the contract
If a contractual offer becomes illegal, what is status of the offer? The contract is valid until a court has an opportunity to review status of the contract and deem it void. It is immediately terminated. It becomes an option contract, allowing for both sides to obtain a waiver. It is valid since the offer was made prior to the illegality.
It is immediately terminated.
Regarding contractual offers, which of the following statements best describes express authorization? It refers to an implied-in-fact contract. It is the specific mode of communication of acceptance that is stated in the offer. It indicates that silence will be construed as acceptance. It refers to the mode of communication that the offeree chooses to communicate acceptance.
It is the specific mode of communication of acceptance that is stated in the offer.
Which of the following is true of the Uniform Electronic Transactions Act rule for emails? It is an act prohibiting emails from constituting acceptance to an offer. It provides that an email is considered received when it enters an information processing system designated by the recipient, provided certain criteria are met. It is a repudiation of the mailbox rule for email. It is an act establishing the circumstances under which an email can be considered an offer. It is a rule establishing when an email creates an implied contract.
It provides that an email is considered received when it enters an information processing system designated by the recipient, provided certain criteria are met.
Death of the offeror will have what effect on a contractual offer? The offeree will have 30 days to accept the offer after the offeror has died and the heirs of the offeror will be bound to the contract. Death will have no impact on the contractual offer, since it has already been communicated to the offeree. It will cause the offer to be terminated. The offeree will have 10 days to accept the offer after the offeror has died and the heirs of the offeror will be bound to the contract.
It will cause the offer to be terminated
What is the likely result in the lawsuit brought by Maria against Randy for the table? Randy will win because Maria was simply making an offer that he was free to decline. Randy will win because the price was clearly insufficient for the table. Randy will win because no acceptance occurred. Maria will win because the auction was without reserve, and Randy had agreed to accept the highest bid. Randy will win because he did not inform attendees in writing that the auction was without reserve.
Maria will win because the auction was without reserve, and Randy had agreed to accept the highest bid.
The terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract, are the __________ terms of a contract. Important Significant Material Adequate Identifiable
Material
______ terms allow a court to determine damages if one of the parties breaches the contract. Material Functional Definite Formal
Material
Under common law, what types of terms must be included in a valid contractual offer? Terms that will be left unresolved for future negotiation Open terms that the contract leaves vague for parties to see conditions later Terms that are written only Material terms, all major items necessary for mutual consent that are clearly laid out
Material terms, all major items necessary for mutual consent that are clearly laid out
The ______ sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer. matching rule competence rule mirror image rule mailbox rule parallel rule
Mirror image rule
What is the standard that courts use to interpret contracts? Objective Equity Utilitarian Subjective
Objective
The name of the party initiating an offer for a contract is the: _______. incorporater offeree beneficiary offeror
Offerer
What are the names of the parties that form a contract? (Check all that apply.) Beneficiary Incorporater Offeror Offeree
Offeror Offeree
Which of the following is true of online businesses and disclosures? Online businesses always give full disclosure of terms about products before payment. Online businesses commonly refrain from giving full disclosure of terms about a product until they receive a customer's payment information. Online businesses are required to make full disclosures easily accessible to consumers before collecting payment information. Online businesses generally make links to online disclosures very easy for consumers to find. Online businesses never make disclosures to consumers about product terms.
Online businesses commonly refrain from giving full disclosure of terms about a product until they receive a customer's payment information.
Who can accept a valid offer that will create a binding contract? Only the offeree or his or her agent Any person who knows about the offer The secretary of state in the state of the offeror A district court judge in the state of the offeree
Only the offeree or his or her agent
What are some things that could be material terms in a valid contract? (Check all that apply.) The details of void contracts that were previously signed Parties involved Information on length of time businesses have been in operation Price of goods
Parties involved Price of goods
Hermine left a very high paying job to join John's law firm based on John's promise to give her a job if she would come to his firm. John tells Hermine that he really did not want to give her the job and she should not have quit her job. If Hermine sues John, which doctrine may courts use to estop, or prevent, John from revoking his offer? Promissory estoppel Reliance on a promise rule Contract essential rule Ethical conduct rule Doctrine of equitable treatment
Promissory estoppel
A valid offer under common law requires which of the following elements? (Check all that apply.) Proper communication of the offer to the offeree An offer that is profitable to the offeror The intent to be bound by an acceptance Definite and certain terms A written offer
Proper communication of the offer to the offeree The intent to be bound by an acceptance Definite and certain terms
Justin proposes to do woodwork for Joseph provided he agrees to the proposed terms within a week. Suppose Joseph calls Justin within a few hours and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and wants to hire him based on the previously discussed terms. This is a valid: _______. rejection revocation acceptance counteroffer
Rejection
Which of the following are ways in which an offer can be terminated: Revocation, rejection, counteroffer, illegality, death, incapacity, and lapse of time. Revocation, acceptance, counteroffer, illegality, and lapse of time. Revocation, adhesion, unilateral termination, and bilateral termination. Rejection, counteroffer, illegality, acceptance, adhesion, lapse of time, and bilateral termination Unilateral termination, bilateral termination, illegality, incapacity, and acceptance
Revocation, rejection, counteroffer, illegality, death, incapacity, and lapse of time.
As a general rule, what effect does silence have in the formation of contracts? Silence is only acceptance if witnessed by a third party. Silence means the offeree accepts the contract in principle and agrees to work on the details of the contract later. Silence means that the offeree fully accepts all the offeror's terms. Silence cannot be used to form a contract.
Silence cannot be used to form a contract.
Absent a description in the offer of what form of communication must be used to form a valid acceptance, what methods of communication are generally accepted as reasonable? (Check all that apply.) Telephone communication Silence on behalf of the offeree In-person communication E-mail communication
Telephone communication In-person communication E-mail communication
Under common law, what are the necessary elements of a valid contractual acceptance? (Check all that apply.) The acceptance will have the definite and certain terms of the offer. The intent of the offeree to be bound by acceptance of the contract. The agreement is in the same language as the offer. The agreement will be profitable for the offeree.
The acceptance will have the definite and certain terms of the offer. The intent of the offeree to be bound by acceptance of the contract.
A valid contractual offer must be communicated to what party? (Check all that apply.) The secretary of state's office in order to have the contract registered The agent of the offeree who is acting on behalf of the offeree The district court to ensure a valid record in case of a future dispute The offeree
The agent of the offeree who is acting on behalf of the offeree The offeree
When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare with those for a valid offer? The basic requirements for a valid acceptance are materially different from those for a valid offer. The basic requirements for a valid acceptance parallel those for a valid offer. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be in writing. The basic requirements for a valid acceptance are different from those for a valid offer only because an acceptance must be in writing. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be revoked immediately but acceptance can be withheld for a reasonable period of time.
The basic requirements for a valid acceptance parallel those for a valid offer.
Once an offeree rejects an option contact (a contract open for a predetermined period of time), what happens? Nothing The contract will be valid until the open period ends and the offeree can change his or her mind. There is a 72-hour "cooling off" period before the contract is terminated. The contract is immediately terminated.
The contract is immediately terminated.
Which of the following is true when an offer authorizes a certain mode of acceptance but does not require it, and an offeree attempts to accept the offer through a method other than the authorized means? The acceptance becomes a counteroffer that the original offeror may or may not accept. There is no contract, and the attempted acceptance is of no effect. There is a contract only if the acceptance is received by the time that acceptance through the authorized means would have been received. The contract is not formed until the acceptance is received by the offeror.Correct Authorizing but not requiring a certain type of acceptance has no effect, and the mailbox rule applies.
The contract is not formed until the acceptance is received by the offeror.
How would a court likely respond to an offeror's attempt to avoid contract liability by claiming she was merely joking when she made an offer to the offeree? (Assume the offeree accepted the offer based on the reasonable belief that the offer was legitimate.) Applying fundamental notions of equity, the court would refuse to enforce the contract due to the offeror's lack of subjective intent. Applying well-established principles of common law, the court would refuse to enforce the contract due to the offeror's lack of subjective intent. The court would only consider the intent of the offeror's hidden intent. The court would enforce the contract, since courts are not usually interested in an offeror's hidden intent.
The court would enforce the contract, since courts are not usually interested in an offeror's hidden intent.
The creation of a valid contractual offer requires what elements? The offeror must have proposal that will create profit, the terms of the offer must be definite, and the offer must be communicated to the offeree The intent of the offeror for an agreement, definite terms, and the offer must be communicated to the offeree The intent of the offeror for an agreement, consideration of over $500 in value, and the offer is in writing The offeror must put the offer under seal, the offer must be formal, and the parties must indicate subjective intent to be bound by the terms of the offer
The intent of the offeror for an agreement, definite terms, and the offer must be communicated to the offeree
Which of the following is the result if the subject matter of an offer becomes illegal? The offer immediately terminates. There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal. There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal. There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal. There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.
The offer immediately terminates.
If the subject matter of a contractual offer is destroyed, what is the status of the offer? There is no change. All parties must continue with their contractual obligations. The offer is immediately terminated. The offeror is liable for a breach of contract for allowing the destruction. The offer is converted to an option contract to allow parties to find substitute consideration.
The offer is immediately terminated.
What are the elements of a contractual offer? (Check all that apply.) The offer must contain definite terms. The offer must be in writing. The offer must indicate the offeror's intent to be bound by the agreement. The offer must be communicated to the offeree.
The offer must contain definite terms. The offer must indicate the offeror's intent to be bound by the agreement. The offer must be communicated to the offeree.
If an offer states that it is good for thirty days, what happens in thirty days if the offeree has not responded? The offer is void because an offer can only be open for a period of 20 days. The offer terminates immediately. The offer is voidable, and valid until the offeror publicly indicates that the offer is rescinded. Under common law, an additional thirty days would be given to the offeree.
The offer terminates immediately.
If there is no stated period when the offeree must accept or reject an offer, when will the offer expire? Due to the rule against perpetuities, the contract will remain open for twenty years and then must be renewed. The offer will expire after a reasonable period of time. The offer is open for a period of 30 days. Never. Without a stated period the offer remains open for the offeree to accept, unless the offeror withdraws the offer.
The offer will expire after a reasonable period of time.
Which of the following is not a basic common-law requirement for a valid acceptance? The offeree's manifestation of intent to be bound by the acceptance and the resulting contract The offeree's written acceptance, dispatched by certified mail, to the offeror The offeree's communication of the acceptance to the offeror The offeree's agreement to the definite and certain terms of the offer
The offeree's written acceptance, dispatched by certified mail, to the offeror
Which party to a contract can revoke an offer at any time? The incidental beneficiary The offeree The offeror The third-party beneficiary
The offeror
Which party to a contract is said to be the "master of their offer?" The incidental beneficiary The offeree The offeror The third-party beneficiary
The offeror
Who has the power to decide by what means an offer can be validly accepted? The Office of the Secretary of State The offeror The Federal Contract Commission The offeree
The offeror
Which of the following is the phrase used to explain why an offeror has the right to revoke an offer before acceptance? The offeror is the "controller of his offer." The offeror is the "master of his offer." The offeror is the "proponent of his offer." The offeror is the "adjudicator of his offer." The offeror is the "arbiter of his offer."
The offeror is the "master of his offer."
Regarding contractual offers, which of the following statements is true of a unilateral offer? Silence from the offeree can be construed as acceptance. The offeror must give the offeree a reasonable time to complete it if the offeree has begun performing. The offeror can rescind it at any time. The offeror cannot revoke the offer until the offeree has had an opportunity to respond to the offer.
The offeror must give the offeree a reasonable time to complete it if the offeree has begun performing.
Using the objective standard to establish contractual intent, courts are concerned with looking at which of the following? (Check all that apply.) Non-evidentiary material The words and documents in public from the parties regarding the agreement The actions and behavior of the parties in public regarding the agreement The internal thought processes of the parties regarding the agreement
The words and documents in public from the parties regarding the agreement The actions and behavior of the parties in public regarding the agreement
When considering whether an offer has expired, what is presumed to be a reasonable amount of time? Forty-eight hours. Seven days. Ten days. Forty-five days. There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.
There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.
Reasonably definite terms are one of the elements of an offer. True or False
True
When, generally speaking, is a revocation effective? When it is mailed by the offeror. When it is received by the offeree. Immediately upon the offeror's decision to revoke. Within 24 hours of the offer being made. Whenever the offeror decides not to accept the offer.
When it is received by the offeree.
Under the common law mirror-image rule, when is a counteroffer formed? When the offeree changes his or her mind about the offer When the offeree remains silent and does not communicate an acceptance When the offeree's acceptance does not include all of the terms of the offeror's offer When the offeree accepts the offer, but files a formal protest with the Office of the Secretary of State
When the offeree's acceptance does not include all of the terms of the offeror's offer
When is it reasonable to assume that the offeree's silence constitutes acceptance? When the offer is bilateral When the previous course of dealings between the parties have established such a pattern of behavior When the offer is unilateral When an offer is made and the offeree does not respond within the time in accordance with the option contract
When the previous course of dealings between the parties have established such a pattern of behavior
When is it reasonable to assume that the offeree's silence constitutes acceptance? When the previous course of dealings between the parties have established such a pattern of behavior When the offer is unilateral When the offer is bilateral When an offer is made and the offeree does not respond within the time in accordance with the option contract
When the previous course of dealings between the parties have established such a pattern of behavior
Bailey is selling his baseball cards. He writes his friend Molly a letter and tells her she can buy the cards for $100. He closes his later saying: "If you want to buy the cards, let me know by next month. You can give me a call or whatever." Two days later, Bailey receives a letter from Molly saying she will buy the cards for $100. Does Bailey have to sell Molly the cards? No, because there was no definite offer. No, because there was no definite acceptance. No, because Molly did not call Bailey via phone to accept his offer. Yes, but only if Molly goes to pick up the cards and takes him the $100 within two days of the time her letter is received. Yes, because Molly's letter accepting Bailey's offer was received, and Bailey only suggested that Mary call to accept; he did not require it.
Yes, because Molly's letter accepting Bailey's offer was received, and Bailey only suggested that Mary call to accept; he did not require it.
An advertisement in a paper states: "first come first served, two new BMX bikes, $150 apiece. Doors open at 10:00 a.m." Would the advertisement be treated as a valid offer? No, because an advertisement is never treated as an offer. Yes, because the advertisement specifies a limited quantity and provides a specific means by which the offer can be accepted. Yes, because the advertisement is treated as an offer if the ad specifies a price that it is willing to sell a product for. No, because the advertisement doesn't say "THIS IS AN OFFER." Yes, because an advertisement placed in a newspaper is always treated as an offer.
Yes, because the advertisement specifies a limited quantity and provides a specific means by which the offer can be accepted.
Which of the following is an element for the creation of a valid contractual offer in common law? You need the intent to be bound by an acceptance of the offeree. The offer must be approved by a court. The offer must be in writing. The offer must be profitable to the offeror.
You need the intent to be bound by an acceptance of the offeree.
If an offeror mails revocation of the offer to the offeree, but the offeree communicates acceptance of the offer to the offeror before the offeree receives the revocation: ______. no contract exists, but there is now a counteroffer from the offeree no contract exists due to the revocation being mailed first a valid contract has been formed a contract exists, but only if an option contract is involved
a valid contract has been formed
According to the Restatement of Contracts, if no mode of communication is specified in the offer, ______. the mailbox rule applies silence is interpreted as acceptance any reasonable means of acceptance is valid acceptance must be sent via certified mail
any reasonable means of acceptance is valid
Under the Restatement of Contracts, if no mode of communication is specified in an offer, acceptance: _______. must be in person must be authorized by a judicial magistrate can occur through any reasonable means must be in written form
can occur through any reasonable means
Under common law, a valid contractual offer will be:_______. (Check all that apply.) delivered with a fixed deadline definite in its terms delivered with an uncertain deadline certain in its terms
definite in its terms certain in its terms
In case of the death of the offeror, the offer terminates ______. immediately when it expires in accordance with the option contract within 48 hours of the death of the offeree as soon as the offeree becomes aware of the offeror's death
immediately
The means by which the offeree can communicate a valid acceptance to the offeror may be: _______. (Check all that apply.) implied from the facts and circumstances surrounding the communication of the offer to the offeree determined by the provisions of the Uniform Contracts Code, especially if the parties have expressly stipulated the means of acceptance in their contract determined by the Secretary of State of the jurisdiction in which the parties contract expressly stated in the offer
implied from the facts and circumstances surrounding the communication of the offer to the offeree expressly stated in the offer
A(n) _______ contract is created when the offeree is silent but receives a legal benefit. implied-in-fact conditional express revocable
implied-in-fact
Dameon offers to sell his camper trailer to Wanette. Before Wanette can decide if she wants to buy the camper, a storm destroys the camper. The offer _______. must be upheld is extended until Dameon can replace the camper is extended for twenty-one days is automatically terminated would be left to a court to decide whether or not to be upheld.
is automatically terminated
Suppose Jeremy offers a job to Carol but states in the offer, "I must receive your acceptance by e-mail before 5:00 p.m. on September 5." Carol puts her signed acceptance in the postal mail on September 3, but the acceptance does not arrive until September 7. Jeremy and Carol have: _______. no agreement, because Carol did not accept in the manner and time specified in the offer a binding revocation under the mirror-image rule an agreement, even though Carol did not accept in the manner and time specified in the offer a binding counter-offer under the mirror-image rule
no agreement, because Carol did not accept in the manner and time specified in the offer
If an acceptance is sent to the wrong address and never arrives at the correct address, there is: ______. an implied-in-law contract promissory estoppel a valid offer no contract
no contract
A counteroffer to an offer is made by the ______ to the ______. offeree; incidental beneficiary offeror; third-party beneficiary offeror; offeree offeree; offeror
offeree; offeror
If it is not clear whether the ______ wants performance or a return promise, the offeree has the option of either performing or making a return promise. offeror incidental beneficiary offeree third-party beneficiary
offeror
Promissory estoppel is the contractual concept that: _______. one party can exit an offer if the contract becomes unreasonably unprofitable that one party can cancel the offer because for any reason one party reasonably relied on another's promise and due to that reliance, the court won't allow the revocation of the offer now one party can shop around and find better offers if there wasn't sufficient consideration in the original offer
one party reasonably relied on another's promise and due to that reliance, the court won't allow the revocation of the offer now
Justin proposes to do woodwork for Joseph provided he agrees to the proposed terms within a week. Suppose Joseph calls Justin within a few hours and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and wants to hire him based on the previously discussed terms. This is a valid: _______. acceptance counteroffer rejection revocation
rejection
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:______. intending to return the dog promising to return the dog returning the dog looking for the lost dog
returning the dog
As a general rule, ______ cannot be used to form a contract. the performance of an act spoken words a promise silence
silence
Assume that an offer merely authorizes certain modes of acceptance, but does not condition acceptance on the use of those modes. In such a situation, if the offeree uses an unauthorized means of acceptance: _______. there is a voidable contract, and the offeror can decide if the contract is valid the acceptance creates a valid contract upon receipt by the offeror it is considered a counteroffer for the offeror to decide to accept or reject there is no valid contract, since the offeree used an unauthorized means of communication
the acceptance creates a valid contract upon receipt by the offeror
As a general rule, a revocation of an offer is effective when ______. the offeror decides to revoke the offer the offeree decides to make a counteroffer the offeree receives it the offeror sends the information to the offeree that the offer has been revoked
the offeree receives it
Regarding a contractual offer, silence by the offeree can be interpreted as acceptance when ______. the two parties have a longstanding relationship in which a fresh contract is signed for every new transaction the two parties have a longstanding relationship where rejection is immediately communicated by the offeree the offer is being communicated through agents free products or services have been provided to the offeree
the two parties have a longstanding relationship where rejection is immediately communicated by the offeree
In an option contract, the offeree gives consideration to the offeror: _______. to name a third party beneficiary who will have rights under the contract to have an offer that is promised to produce a profit for the offeree to have an offer that cannot be revoked by the offeror for a period of time to give the courts the option to cancel the contract
to have an offer that cannot be revoked by the offeror for a period of time
Under the mailbox rule, acceptance is valid: _______. 10 days after it is mailed by the offeree when it is received by the offeror when it is mailed by the offeree when the offeror acknowledges receipt of the acceptance
when it is mailed by the offeree
Under the mailbox rule, a revocation is effective: _______. when it is received by the offeree when the offeree acknowledges receipt of the revocation when the offeror puts the revocation in the mail one week after the offeror mails the revocation
when it is received by the offeree
As a general rule, a revocation of an offer is effective: _______. when the offeree receives the revocation 24 hours after the offeror notifies the offeree only upon the offeree's consent when the offeror decides to cancel the offer
when the offeree receives the revocation