Ch 10

A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration. A. offer B. option C. bid D. advertisement

A

Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____. A. offers B. invitations to negotiate C. invitations to offer D. obligations

A

How does the presence of facts that constitute promissory estoppel make a difference in the law of offers and revocations? A. It makes an option enforceable, even without consideration. B. It does away with the requirement that rejections and revocations be communicated. C. It makes an offer automatically revocable at any time. D. It does away with the requirement that offers be definite.

A

In which of the following circumstances are offerors free to revoke their offers? A. In case of common law rule on revocation. B. In case of unilateral contracts. C. In case of the availability of an option. D. In case of a promissory estoppel.

A

Offers that fail to provide a specific time for acceptance are: A. considered to be illegal. B. are valid for a reasonable period for time. C. are valid but unenforceable. D. can be used to penalize the offeror.

A

What does 'present intent to contract' mean? A. Intent to enter the contract upon acceptance B. Intent to negotiate in case of rejection of offer C. Intent to set contractual conditions D. Intent to engage more than one partner in the deal

A

What legal effect does death or insanity of the offeror have on the offer? A. It terminates the offer automatically. B. It terminates only the last contract that has been formed with that offeror. C. It has no legal effect unless and until the offeree is notified of the death of the offeror. D. It makes the offer voidable.

A

Which of the following characterizes definiteness standards under the common law? A. Courts are contract enforcers. B. Contracts need to contain all the terms. C. Courts should be able to provide "gap fillers" in contracts. D. Courts can take a "hands-on" approach to contracts.

A

A newspaper advertisement made to the general public: A. usually is an offer. B. can be revoked by using a similar newspaper advertisement. C. can only be rejected by using a similar newspaper advertisement. D. is a firm offer that cannot be revoked.

B

Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of: A. consideration. B. definiteness. C. communication to offeree. D. present intent to contract.

B

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true? A. Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. B. There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. C. Kyle and Tara have a contract for the purchase of Kyle's car. D. Maggie's letter is a valid acceptance of Kyle's offer.

B

On May 1, Ida makes a written offer to Miranda for the sale of Ida's car. On May 2, Ida mails Miranda a letter revoking the offer. On May 3, Ida telephones Miranda to tell him that he is revoking the offer. On May 4, Miranda learns that Ida has sold the car to Chris. On May 5, Ida's letter finally gets to Miranda. Ida's offer terminated on: A. May 2. B. May 3. C. May 4. D. May 5.

B

The outer limit on a firm offer is: A. 1 month. B. 3 months. C. 6 months. D. 1 year.

B

When an auction is advertised as being _________, the seller is treated as having made an offer to sell the goods to the highest bidder. A. without intent B. without reserve C. without price D. without offer

B

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

B

When is the revocation of an offer effective? A. When received by the offeror B. When received by the offeree C. When sent by the offeree D. When sent by the offeror

B

Which of the following helps to prevent offerors from revoking their offers prior to acceptance when the offeree relies on it being kept open? A. Option B. Promissory estoppel C. Unilateral contracts D. Firm offer

B

Which of the following is true of a sales contract under the UCC? A. The courts cannot fill any "gaps" in the contracts. B. The court needs to find if the parties intended a contract. C. An intent to contract exists even in the parties were unable to reach an agreement. D. All terms of contract need to be clear for the court to decide the case.

B

Which of the following is true regarding bids? A. They are considered to be unilateral contracts. B. Promissory estoppels can be used to prevent withdrawal of bids. C. Bids for governmental contracts are covered under contract principles. D. Those submitting a bid are called offerees.

B

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise. A. An offer for the sale of land. B. An offer to purchase stock on a stock exchange. C. An offer that says that it will stay open for one week. D. An offer with a valid five-day option attached to it.

B

A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country; and therefore, the offer was terminated by the embargo. This is an example of: A. promissory estoppel. B. sestruction of subject matter. C. supervening illegality. D. revocation.

C

A firm offer differs from an option in that, a firm offer: A. is a separate contract by itself. B. is irrevocable for a certain period of time. C. does not require a consideration in exchange for the offer. D. is not covered under the UCC.

C

According to the classical contract law, courts are: A. contract makers. B. contract breakers. C. contract enforcers. D. contract negotiators.

C

Advertisements for the sale of goods at specific prices are considered to be: A. bids. B. unenforceable contracts. C. invitations to offer. D. unilateral contracts.

C

An online agreement that presents contract terms and conditions but does not require readers to click to indicate agreement is called a: A. clickwrap agreement. B. shrinkwrap agreement. C. browsewrap agreement. D. minimum contracts agreement.

C

How can an offeree impliedly reject an offer? A. By indicating that he will not accept it B. By asking for more time to think C. By making a counteroffer D. By writing his nonacceptance

C

Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian's car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate? A. After 5 days, as per the "5 day rule." B. After 10 days, as per the "10 day rule." C. After a "reasonable" period of time. D. When either Ian or Raymond terminates it.

C

Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract? A. Yes, because there is valid consideration. B. Yes, because a third party has communicated the terms of Sue's offer to John and that John had accepted the same. C. No, because the offeror had not communicated the terms of the offer to the offeree. D. No, because the contract is still not signed by both the parties.

C

To distinguish an offer, courts first look at: A. the communication to the offeree. B. the definiteness of terms. C. the present intent to contract. D. a description of the parties involved.

C

Which of the following characterizes an auction "without reserve"? A. Bidders must necessarily be merchants B. Sellers must necessarily be merchants C. Goods cannot be withdrawn after a call for bids D. Buyers are treated as having a made an offer to sell

C

Which of the following characterizes the Code's standards of definiteness? A. It sees courts as contract enforcers. B. It requires a high degree of definiteness in contracts. C. It can create contractual liabilities. D. It cannot fill in gaps in contracts.

C

Which of the following is true of a revocation? A. The power of revocation of an offer lies with the offeree. B. Death or insanity cannot be reasons for revocation. C. Promissory estoppels are used to prevent revocations. D. Offers that fail to state a specified time period are considered invalid.

C

Why does a rejection by the offeree terminate his power to accept the offer? A. It indicates his inability to perform the contract. B. It indicates that the offeree is uninterested. C. It allows the offeror to approach a different offeree. D. It indicates a lack of intent making any future contract illegal.

C

Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price. Such pens typically sell for $1 each. Carl orally accepts. Immediately thereafter, Abby tries to back out of the deal. At this point in time, which of the following is most likely to be true? A. There is no offer and no contract because the offer is indefinite. B. There is no offer and no contract because the offer must be in writing. C. There is a contract, if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. D. There is a contract, because the offer contained all material terms.

D

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. communication C. object D. specificity

D

Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? A. Austen should not rely on Bronte's offer to do the electrical work. B. Austen has accepted Bronte's offer, thereby forming a contract. C. Austen is not bound by Bronte's bid until he informs her of his intent to accept. D. Bronte has accepted Austen's offer by submitting the lowest bid.

D

Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation? A. Yes, because Sara is the master of the offer here. B. Yes, because Sara can revoke the offer any time she feels like. C. No, because this is a valid contract that cannot be revoked. D. No, because this is now a bilateral contract.

D

Which of the following conditions characterizes a firm offer regarding the sale of goods? A. It must be verbally communicated. B. It can be revoked by the offeror prior to acceptance. C. It must be made in the presence of a government official. D. It must be made by an offeror who is a merchant.

D

Which of the following is an exception to the general rule that rejections terminate offers? A. Unilateral contracts B. Bilateral contracts C. Firm offers D. Option contracts

D

A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

F

A revocation is effective at the time it is dispatched by the offeror.

F

All terms of contracts, even "fine-print" terms of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.

F

Courts look at parties outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

F

Generally speaking, advertisements are considered to be offers.

F

Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite.

F

The offeror's death automatically terminates an offer, but the offeree's death does not.

F

An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract.

T

Bob offers to sell his bike to Sue for $100, and promises to keep his offer open for five days. Sue thanks him and leaves. At this point, Bob still has the power to revoke his offer.

T

Generally speaking, the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

T

If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

T

Strictly speaking, a contract has nothing to do with the personal intent of the parties.

T

The UCC often creates contractual liability in situations where no contract would have resulted at common law.

T

The offeror is said to be the "master of the offer". This means that offerors have the power to determine the terms and conditions under which they are bound to a contract

T

The three requirements for a valid offer are: present intent to contract, definiteness and communication to the offeree.

T