chapter 6 questions
To announce the grand opening of a new retail business, Hudson placed an advertisement in a local newspaper quoting sales prices on certain items in stock. The grand opening was so successful that Hudson was unable to totally satisfy customer demands. Which of the following statements is correct?
Hudson made an invitation seeking offers public advertisements are generally not considered offers, unless they are VERY specific
The following conversation took place between Mary and Ed: "Ed if you wanted to sell your table, what would you ask for it?" Ed: "I suppose $400 would be a fair price." Mary: "I'll take it, if you will have it refinished." Ed: "Sold." Thus
A contract was formed when Ed said: "Sold." a bilateral contract is formed when the offeree accepts an offer
For an offer to confer the power to form a contract by acceptance, it must have all of the following elements except
Be communicated by words to the offeree by the offeror 3 requirements: 1. objective intent 2. definiteness of terms 3. communication to the offeree
An offer to sell a tract of real property is terminated at the time the
Buyer learns of the sale of the property to a third party
Dye sent Hill a written offer to sell a tract of land located in Newtown for $60,000. The parties were engaged in a separate dispute. The offer stated that it would be irrevocable for 60 days if Hill would promise to refrain from suing Dye during this time. Hill promptly delivered a promise not to sue during the term of the offer and to forego suit if Hill accepted the offer. Dye subsequently decided that the possible suit by Hill was groundless and therefore phoned Hill and revoked the offer 15 days after making it. Hill mailed an acceptance on the 20th day. Dye did not reply. Under the circumstances
Dye's offer was supported by consideration and was NOT revocable when accepted this is a binding option contract bc Hill is giving up his legal right to sue, making the offer irrevocable after acceptance
In deciding whether consideration necessary to form a contract exists, a court must determine whether
There is mutuality of consideration "bargained-for" requirement
