Chapter 14 Quiz

An offer must include all but which of the following elements? Multiple Choice The offer must be communicated to the offeree. The offer must demonstrate a serious intent by the offeror to be bound by the offer. The offer must contain reasonably definite and certain terms. The offer must always be in writing.

The offer must always be in writing.

When can silence generally be used as a form of acceptance? Multiple Choice Never When the parties have no previous course of dealing with each other and have not established a pattern of behavior When the parties agree that silence will be an acceptance When the offeree receives the benefits of the offered services without a reasonable opportunity to reject them

When the parties agree that silence will be an acceptance

Formation of a contract begins when the party initiating the contract, called the ________blank, makes an offer to another party, called the ________blank. Multiple Choice grantor; grantee transferor; transferee delegator; delegatee offeror; offeree

offeror; offeree

A valid offer includes: Multiple Choice offers communicated by the offeror to the offeree's agent. expressions of possible interest by the offeror. preliminary negotiations and advertisements. vague and ambiguous proposals.

offers communicated by the offeror to the offeree's agent.

At an auction, if the seller is treated as making an offer to accept the highest bid, then the auction is ________blank. Multiple Choice without stipulation with stipulation with reserve without reserve

without reserve

Robert makes Vince an offer to sell him his Rolex if Vince paints Robert's house by Friday. Which of the following conditions would terminate Robert's offer, even if Vince does not know of the terminating event? Multiple Choice If Vince has begun performance of the action necessary to accept a unilateral offer If Robert dies If Robert decides to revoke the offer made to Vince If Robert and Vince are in an option contract that is still valid

If Robert dies

Which of the following conditions must be present for an offer to have a legal effect? Multiple Choice Neutral third parties Expression of interest in an exchange Definite and certain terms Invitation to negotiate

Definite and certain terms

Jorge offers to build Larry a garage for $20,000. The offer stated that acceptance in person was required. Within a reasonable time, Larry e-mailed Jorge his acceptance. Which of the following statements is true about this situation? Multiple Choice The acceptance by Larry will be presumed as an implied contract. The agreement between Larry and Jorge will be valid but unenforceable. Larry has accepted the offer because an e-mail is a reasonable means of acceptance. Larry has not accepted the offer as required by the offeror, and there is no contract.

Larry has not accepted the offer as required by the offeror, and there is no contract.

How is an offeror's intent to be bound by an agreement demonstrated? Multiple Choice The courts determine an offeror's intent based upon his or her demonstrated acceptance of the offer when negotiations began. The courts determine an offeror's intent based upon what the offeror's belief was at the time negotiations began. The courts determine an offeror's intent based upon what that person's subjective principles are. The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

Which of the following is not generally considered a material term in an offer? Multiple Choice The subject matter The price The parties The time the offer is to remain open

The time the offer is to remain open