BLAW Chapter 11 Exam 3

B) the offeree may make a counteroffer C) an offeror may terminate an offer by revocation D) a reasonable amount of time has passed

How may an offer be terminated? choose 3 answers: A) a competitor to the offeror can issue a better offer for the same product or service B) the offeree may make a counteroffer C) an offeror may terminate an offer by revocation D) a reasonable amount of time has passed

B) the offeror

In an auction, the bidder is: A) seller B) the offeror C) counter-offer D) the offeree

provisions

online offers frequently include ___ relating to dispute settlement

rejection

only effective when it is actually received by the offeror or the offeror's agent

1. Expressions of opinion 2. Statements of future intent 3. Preliminary negotiations 4. Invitations to bid 5. Advertisements and price lists 6. Live and online auctions

6 statements that are not offers

offer

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

A) qualifies as acceptance of that week's delivery offer

If two parties have an on-going oral agreement that one will ship and the other will accept 50 points of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce: A) qualifies as acceptance of that week's delivery offer B) fails as an acceptance for lack of timeliness C) cannot be held against them as acceptance of an offer D) does not qualify as a valid acceptance of the offer

click-on agreement

an agreement that arises when an online buyer clicks on "I agree"

shrink-wrap agreement

an agreement whose terms are located inside a packaged box of goods

received

an electronic record is considered ___ when it enters the recipient's processing system in a readable form, even if no individual is aware of its recipe

sent

an electronic record is considered ___ when it is properly directed to the intended recipient in a form readable by the recipient's computer system

e-signature

an electronic sound, symbol, or process attached to or logically associated with a record and adopted by a person with the intent to sign the record

irrevocable

some offers can be made ___

keeping the goods

usually in shrink-wrap agreements, the party who opens the box automatically accepts the terms of the agreement by ___

A) the offeror may withdraw the offer with a clear expression D) the offeror may take an action that contradicts the offer and make that known to the offeree

How may a revocable offer effectively be revoked? choose 2 answers: A) the offeror may withdraw the offer with a clear expression B) the offeror may convert the offer to an option contract C) the offeree may reject the offer with a clear expression D) the offeror may take an action that contradicts the offer and make that known to the offeree

C) it may only be accepted by the intended offeree or the offeree's agent D) acceptance must be unequivocal with no requests for changes in the offer

What conditions must be met for an offer to be legally accepted? choose 2 answers: A) acceptance must be communicated in words, either written or oral B) the offer must be accepted within 24 hours of communication C) it may only be accepted by the intended offeree or the offeree's agent D) acceptance must be unequivocal with no requests for changes in the offer

B) the offeror must intend to be bound by the offer C) the terms of the offer must be reasonably definite so that all parties understand them D) the offer must be communicated to the offeree

What elements are required for an offer to be effective under the common law? choose 3 answers: A) the offer must be irrevocable for a set period of time to allow acceptance B) the offeror must intend to be bound by the offer C) the terms of the offer must be reasonably definite so that all parties understand them D) the offer must be communicated to the offeree

C) the contract is ratified

What happens when a party with the right to avoid a contract chooses to not avoid it? A) the contract becomes a quasi-contract B) the contract becomes void C) the contract is ratified D) the contract is rejected

A) I will sell you my house for $400,000

Which of the following statements is an offer? A) I will sell you my house for $400,000 B) I am thinking about selling my house for $400,000 C) there is no way I could sell my house for less than $400,000 D) house for sale! asking $400,000

B) in the future, as in "I will sell you my boat sometime in the future for $1000" D) might, as in "I might want to sell you my boat for $1000"

Which of the following words, if added to an offer, will cause the offer to fail for definiteness? choose 2 answers: A) Friday, as in "I will sell you my boat Friday for $1000" B) in the future, as in "I will sell you my boat sometime in the future for $1000" C) tomorrow, as in "I will sell you my boat tomorrow for $1000" D) might, as in "I might want to sell you my boat for $1000"

mirror image rule

A common law rule that requires that the terms of the offeree's acceptance match exactly to the terms of the offeror's offer exactly for a valid contract to be formed.

agreement

A mutual understanding or meeting of the minds between two or more individuals regarding the terms of a contract

B) no, but the terms required will depend on the type of contract

Must all terms of a deal be included in an offer? A) no, unless the offeror purposely leaves terms of the offer ambiguous B) no, but the terms required will depend on the type of contract C) yes, unless it is an offer for services in which case some terms can be filled in later D) yes, an offer is not complete unless all terms are included

revocation

___ may be accomplished by: 1. express rejection of the offer 2. performance of acts that are inconsistent with the existence of the offer, and are made known to the offeree

e-contracts

___ must meet the same basic requirements as paper contracts; agreement, consideration, contractual capacity, and legality

silence

___ will operate as an acceptance in some instances if the offeree has a duty to speak, or if the offeree has had prior dealings with the offeror

promise, promise

a bilateral contract is a ___ for a ___

choice-of-law clause

a clause that specifies that any dispute arising out of the contract will be settled in accordance with the law of a particular jurisdiction

1. identification of the parties 2. identification of the subject matter of the contract, including work, goods, services, and land 3. consideration to be paid 4. time of payment, delivery, or performance

a contract must include these four terms

e-contract

a contract that is formed electronically

forum-selection clause

a provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the online contract

counteroffer

a rejection of the original offer, and the simultaneous making of a new offer

performance, promise

a unilateral contract is a ___ for a ___

acceptance

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

legal effect

according to the E-SIGN act, no contract, record, or signature may be denied ___ solely because it is in electronic form

a contract

agreement is required to form ___, whether it is formed in the traditional way (on paper) or online

agreements to agree

agreements to the terms of a contract at some future date. may be enforceable if its clear that the parties intended to be bound by the agreement

counteroffer

an acceptance cannot impose new conditions or change the terms of the original offer. if so, the acceptance may be considered a ___

offer, acceptance

an agreement is evidenced by two events:

1. revocation 2. rejection 3. counteroffer

an offer can be terminated by the parties in three ways:

destroyed

an offer is automatically terminated if the specific subject matter of the offer is ___ before the offer is accepted

definite

an offer must have reasonably ___ terms so that a court can determine if a breach has occurred and give an appropriate remedy

lapse of time

an offer terminates automatically by law when the period of time specified in the offer has passed:

dies, legally incapacitated

an offeree's power of acceptance is terminated when the offeror or offeree ___ or becomes ___, unless the offer is irrevocable

bilateral contract

communication of acceptance is necessary, because acceptance is in the form of a promise

preliminary agreement

constitutes a binding contract if the parties have agreed on all essential terms, and no disputed issues remain to be resolved

option contract

created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree. Offeror cannot revoke the offer for the specified period of time in the offer

intention

determined by what a reasonable person in the offeree's position would conclude that the offeror's words and actions meant

agreement, consideration, contractual capacity, legality

for a contract to be considered valid and enforceable, four basic requirements must be met:

unilateral contract

full performance of some act is called for, acceptance is usually evident, and notification is usually unnecessary

state law

if a state has enacted UETA without modification, ___ will govern

words, conduct

if the offeree rejects the offer, either by ___ or ___, the offer is terminated

reasonably clear

in displaying the contract online, it must be in a readable format and all provisions should be ___

offers, accepts

one party ___ a certain bargain to another party, who then ___ the bargain

requirements

the E-SIGN Act allows states to enact alternative ___ for the use of electronic records or signatures

E-SIGN act

the ___ does not apply to court papers, divorce decrees, evictions, foreclosures, health-insurance terminations, prenuptial agreements, and wills because they are important documents

legally binding contract

the offeree's acceptance of an offer creates a ___

offeror

the party making an offer

offeree

the party to whom the offer is made

operation of law

the power of the offeree to make the contract a binding, legal obligation can be terminated by ___ through any of these events: 1. lapse of time 2. destruction of specific subject matter 3. death or incompetence 4. illegality

Uniform Electronic Transactions Act (UETA)

the primary purpose of the ___ is to remove barriers to e-commerce by giving the same legal effect to electronic records and signatures as is given to paper versions

revocation

the withdrawal of a contract offer by the offeror

1. serious, objective intention by the offeror 2. terms of the offer must be reasonable definite/certain so that the court and parties can ascertain the terms of the contract 3. offer must be communicated to the offeree

three elements needed for an offer to be effective

unequivocally

to exercise the power of acceptance effectively, the offeree must accept ___, "all or nothing"