ch11

Which of the following occurrences will NOT terminate an offer? a. acceptance b. rejection c. revocation

a. acceptance

An acceptance must match the terms of the offer exactly in order to be valid. This is known as the mailbox rule. a. True b. False

f

The offer must be ____ to the offeree.

communicated

Agreement is normally evidenced by an offer and an acceptance. a. True b. False

t

An acceptance sent by means not expressly or impliedly authorized normally is not effective until it is received by the offeror. a. True b. False

t

You receive a letter telling you that you will start receiving a box of fresh fruit each month and that if you don't want it, you have to reply within seven days. You ignore the offer. Your silence

does not constitute an acceptance of the offer

The identification of the ____ . The identification of the____ or subject matter of the contract. The____ to be paid. The____ of____ , delivery, or performance.

parties object consideration time payment

Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally CANNOT buy the car for $1,000: a. because Pascal did not write anything down b. because a reasonable person would know that a serious offer was not being made c. because Pascal's subjective intent can't be known

b. because a reasonable person would know that a serious offer was not being made

Olivia says to Jim, "I think I'll sell my new digital camera for $100, because I'm never going to use it." This statement constitutes: a. a valid offer b. an agreement to agree c. a statement of future intent

c. a statement of future intent

The terms of the offer must be reasonably____ , or definite, so that the parties and the court can ____ the terms of the contract.

certain ascertain

The requirement that an offer be properly communicated to the offeree means that the offeror must inform the offeree about the offer in some effective way. a. True

t

Jake chooses a pair of new running shoes from an online catalog. He is informed via e-mail that those shoes are sold out. What can Jake do? a. sue for breach of contract b. sue because the catalog listing constituted a valid offer c. sue because the catalog company improperly revoked its offer d. look somewhere else because the online catalog did not make an effective offer

d. look somewhere else because the online catalog did not make an effective offer

Which of the following statements could be a valid offer? a. an expression of opinion b. a statement of an intention to do something in the future c. an invitation to negotiate d. advertisements e. an auction without reserve

e. an auction without reserve

An effective offer requires that a reasonable price be related to market value. a. True b. False

f

In an auction, the auctioneer acts as the:

offeree

The ____ must have a(n)____ intention to become bound by the offer.

offeror serious

1. Revocation—Unless the offer is____ , it can be revoked at any time before acceptance without____ . 2. Rejection—Accomplished by words or actions that demonstrate a clear____ not to accept the offer; not effective until ____ by the offeror or the offeror's agent. 3. Counteroffer—A ____ of the original offer and the making of a new ____ .

irrevocable liability intent received rejection offer

1. Lapse of time—The offer terminates at the end of the time period specified in the offer or, if no time period is stated in the offer, at the end of a ____ time period. 2. Destruction of the subject matter—When the specific subject matter of the offer is ____ before the offer is accepted, the offer ____ terminates. 3. Death or Incompetence of the offeror or offeree—If the offeror or offeree dies or becomes ____ , this offer terminates (unless the offer is ____ ). 4. Supervening illegality—When a statute or court decision makes the proposed contract____ , the offer automatically terminates.

reasonable destroyed automatically incompetent irrevocable illegal

The mailbox rule means that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective. a. True b. False

t