Chapter 10 Practice Questions

Ms. White lost her puppy. She advertises a reward of $50 for its return. What is the contractual nature of the ad? A) An offer for a unilateral contract B) An invitation for a gift C) an invitation for an offer D) an acceptance of a bilateral promise

An offer for a unilateral contract

True or false: generally speaking, advertisements for the sale of goods at specified prices are considered to be offers.

false

True or false: offers that fail to provide a specific time for acceptance are invalid because they are deemed to be in definite.

false

True or false: to meet the requirements to form a contract, the parties must have future intent to agree and form a contract.

false

The ____ has the power to bind the person who makes an offer simply by excepting the offer. A) leasor B) leasee C) offeree D) offeror

offeree

When can the offeror affectively revoke his/her offer? A) Only after an effective acceptance B) only before the parties have completed their obligations under contract C) only before payment of for goods or services has been made D) only before an effective acceptance

only before an effective acceptance

Ashley says to Ford, "I'd like to buy your house," and Ford responds, "You've got a deal." This exchange lacks ___. A) partners B) object C) communication D) specificity

specificity

True or false: an advertisement offering a reward for return of lost property is usually treated as an offer for a unilateral contract.

true

True or false: the three requirements for a valid offer are; present intent to contract, definiteness, and communication to the offeree

true

When an ad for an auction ____, The seller is treated as having made an offer to sell the goods to the highest better. A) Without intent B) without reserve C) without price D) without offer

without reserve