BLAW- Chapters: 9, 10, & 11
The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.
False
The basic thing the courts require for the creation of an offer is a future intent to contract on the part of the offeror.
False
The courts have generally held that advertisements for the sale of goods at a specified price are offers.
False
Suppose that James, a farmer, leaves three bushels of peaches with Alman, the owner of a grocery store. James says, "Look these over. If you want them, they're $25 a bushel." Alman sells the peaches to his customers. By treating them as if he owned them, Alman has __________ James's offer.
Impliedly accepted Explanation: An offeree may expressly accept the offer, or he may impliedly accept by doing something that objectively indicates agreement. In the subject case, by selling the peaches to his customers, Alman has impliedly accepted James's offer.
A counteroffer:
Impliedly rejects an offer
Which of the following is intended to avoid unjust enrichment?
Quasi contract
According to the Uniform Commercial Code, a(n) __________ contract is one that is grossly unfair or one-sided.
unconscionable
Doug says to his neighbor Warren, "I will pay you $50 if you mow my yard right now." Doug is proposing a __________ contract, and Warren will accept the contract by __________.
unilateral; mowing Doug's yard right now
Voidable Contract
One/ both parties may cancel Enforceable unless canceled
Express Contract
Parties directly state their intentions
What is a contract?
A legally enforceable promise or set of promises
Which of the following is true regarding a quasi contract?
A person is not held liable under quasi contract for benefits he or she received unknowingly.
Offeree
A person to whom an offer is made. Has the power to accept and create a binding agreement
Implied contract
Agreements is clearly reached by acts of parties but not expressly stated
Executed Contract
All parties have performed their duties
All promises are contracts
All promises are contracts
Promisor
Allowing the person who made such a promise
Which of the following is true about auctions?
Bidders are treated as offers, making offers the seller is free to either accept or reject Explanation: Sellers at auctions are generally held to be making an invitation to offer. Bidders at such auctions are treated as offerors, making offers the seller is free to either accept or reject
Mike D'Arruda, the owner of Preferable Purchase Electronics, Inc., orders 100 stereo receivers from Sandy Talley, a salesperson for Dulcet Sound Manufacturing Company. Mike has made a promise to pay for the receivers in exchange for Dulcet Sound's promise to deliver them. This is a(n) __________ contract.
Bilateral
If possible, courts interpret an offer as proposing a(n) __________.
Bilateral Contract
If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms, the parties have created a:
Bilateral contract
The "Battle of the Forms" rules of the Uniform Commercial Code (UCC) apply only when __________.
Both parties have forms
Bilateral Contact
Both parties make a promise and act (promise for a promise)
The doctrine of promissory estoppel does NOT require:
Consideration Explanation: Promissory estoppel requires a promise that the promisor should foresee is likely to induce reliance, significant reliance on the promise by the promisee, and injustice as a result of reliance.
Executory Contract
Contract has NOT been performed in full (could be partially executed)
Which of the following must be present for an offer to have a legal effect?
Definiteness
According to the Uniform Commercial Code (UCC), if one or both parties are nonmerchants, additional terms proposed by the offeree automatically become part of the agreement unless the offer expressly limited acceptance to its own terms.
False
After a court has found that one of the parties to a dispute made an offer, the next thing it looks for to determine if a contract resulted is whether the offeree revoked the offer.
False
Contracts are called either unilateral or bilateral, depending on whether one or both parties have fulfilled their contractual obligations.
False
If Jamal tells, Mai "I'll give you $500 if you find my lost cat Dexter," Mai must promise in writing to find Dexter in order to accept Jamal's offer.
False
Unilateral Contract
One party makes a promise The other party acts (promise for act)
Which of the following would terminate an offer without notice to the offeree?
Insanity of either party Explanation: The death or insanity of either party to an offer automatically (without notice) terminates the offer. This is so because no "meeting of the minds" is possible when one of the parties has died or becomes insane.
Which of the following is true about a contract?
It is an agreement based on an offer and an acceptance of the offer.
Yael sent Jen an offer to sell his mountain bike for $150. After thinking about the offer for a few days, Jen sent Yael a letter accepting his offer and asked if he intended to leave the book basket attached to the bike. The next day, before Jen's letter arrived, Yael phoned Jen and told her that he had decided to sell his bike to Jake, who had offered him $200. Which of the following statements holds true of this case?
Jen's acceptance was good and a contract was created when Jen's letter was mailed.
Offeror
Makes the offer
Valid Contract
Meets all legal rules for a contract
Unenforceable Contract
Meets basic elements of a contract Will not be enforced because of another legal rules or conditions
Kamal places an advertisement in the local newspaper stating "$500 reward for the return of my gold ring." Mira finds the ring and returns it to Kamal, but he refuses to pay her the $500. Which of the following is true regarding this case?
Mira accepted the advertisement as an offer for a unilateral contract by returning the ring; therefore, Kamal must pay her the $500. Explanation: The promissory estoppel doctrine is often used to prevent unfairness in unilateral contract offer withdrawals. The general rule that the offeror can revoke an offer at any time prior to acceptance causes special problems when the offer is for a unilateral contract. If the offeror benefited from the offeree's attempted performance, some courts may allow the offeror to revoke but require him or her to pay the offeree the reasonable value of the performance under a quasi contract theory. Since the above case is a unilateral contract, Kamal cannot revoke the offer and is bound to pay the $500 to Mira.
Void Contract
NOT Valid
Suppose that Iverson makes an offer to sell his dining room table to Betty for $400 and says to her, "If you do not object within five days, we have a contract." The five days comes and goes, and Betty does not object. Is there a contract between Iverson and Betty for the dining room table?
No Explanation: Because the basis of contract law is the voluntary agreement of the parties, the law generally requires some affirmative indication of assent from offerees before it binds them to the terms of an offer. This generally means that an offeror is not allowed to word his or her offer so that the offeree must act to avoid being bound to a contract. In the subject case, Betty has not indicated an affirmative intent to be bound by the terms of the offer; in other words, she has not assented. Mere silence on the part of the offeree is generally not acceptance.
? = Agreement
Offer + Acceptance
Alejandro makes an offer to sell 500 television sets to Lenora. Alejandro is the __________.
Offeror Explanation: Lenora is the offeree. A person who has made an offer (the offeror) has given the party to whom he or she has made the offer (the offeree) the power to create a binding contract by accepting.
Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:
Sale of goods
Which of the following is true regarding the Uniform Commercial Code (UCC)?
The UCC has been adopted by all states except Louisiana, which has adopted only part of the code.
Which of the following is true regarding an offer?
The death of the offeror will terminate the offer.
Promisee
The person who relied on the promise
Nina sent a letter to Adrian that stated she wanted to hire him to decorate the interior of her house. She wrote that he must accept the offer by mail. Adrian received the letter and telephoned Nina to say that he accepted the offer. Which of the following statements is true in this case?
There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail. Explanation: In this case, there is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail. If the offeror specifies in the offer the time, place, or method of communicating acceptance, the offeree must comply fully with the offeror's specifications. Any material deviation makes the attempt to accept ineffective.
A contract is express when the parties directly state its terms at the time the contract is formed.
True
A voidable contract is enforceable against both parties unless a party with the right to cancel the contract has done so.
True
According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.
True
Advertisements for rewards for the return of lost property, for information, or for the capture of criminals are generally held to be offers for unilateral contracts.
True
An offer is the manifestation of a willingness to enter into a contract if the other person agrees to the terms.
True
Any attempt by the offeree to materially alter the terms of the offer is treated as a counteroffer that terminates the offer.
True
Article 2 of the Uniform Commercial Code applies to all contracts for the sale of goods.
True
If Michael sends Francisco a letter offering to sell him a condo in California for $400,000 and Francisco sends Michael a letter offering $375,000 but later changes his mind and sends a letter accepting the original offer for $400,000, no contract will result if Michael receives the counteroffer before he receives the acceptance.
True
If the parties have dealt with each other before and silence signaled acceptance in their prior dealings, the offeree who remains silent in the face of an offer may be held to have accepted.
True
If there is no offer, there is nothing to accept, and a contract cannot be created.
True
In some cases, the doctrine of promissory estoppel prevents offerors from revoking their offers.
True
The biggest reform of contract law has resulted from the adoption of the Uniform Commercial Code (UCC).
True
Where means of acceptance are authorized but not required, any attempt by the offeree to accept by nonauthorized means is not effective until the acceptance is actually received by the offeror.
True
The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:
UCC holds merchants to higher standards in certain circumstances, while the CISG does not make a distinction between merchants and nonmerchants. Explanation:The UCC differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants. This is because all parties must be merchants under the CISG since it applies only to commercial sales.
Jane tells Mark that she would pay him $50 if he finds her lost bag. This is an example of a __________ contract.
Unilateral
Patricia runs an advertisement in the local newspaper offering a $500 reward for the return of her lost Snowshoe cat, Dexter. Patricia has made a promise to pay the person who performs the act of returning Dexter. This is a(n) __________ contract.
Unilateral
In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:
asking which element predominates in the contract.
The doctrine of promissory estoppel:
protects reliance, not bargains
If an offer does not state a time for acceptance, it is valid:
for a reasonable time, which depends on the circumstances of the offer.
In an agreement between two parties, if the facts indicate that a term was left out because the parties were unable to reach an agreement about it, it would probably mean that the:
intent to contract is absent, and no contract was created.
Website advertisements for the sale of goods or services are generally considered as:
invitations to buyers to make an offer.
According to the Uniform Commercial Code (UCC), the "reasonableness" standard:
is a practical standard used to gauge what people really do in the marketplace.
A subcontractor's bid:
is considered an offer.
When two parties have directly, but orally, stated all the terms of a contract at the time it was formed, they have:
made an express contract.
The Uniform Commercial Code (UCC) has created an exception to the __________ in cases where contracts for the sale of goods are made by exchanging forms.
mirror image rule
According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, __________ contract is created.
no
An offeree who attempts to accept after an offer that has terminated is himself making a(n) __________.
offer
An offeree may accept an offer within a reasonable time and by any reasonable means of communication if the:
offer merely suggests a method or place of communication.
When parties fail to expressly agree on the terms of a sales contract, __________.
the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute
