Business Law 14

A

Under the mailbox rule, acceptance is valid: _______. A. when it is mailed by the offeree B. 10 days after it is mailed by the offeree C. when it is received by the offeror D. when the offeror acknowledges receipt of the acceptance

offerer

If it is not clear whether the ______ wants performance or a return promise, the offeree has the option of either performing or making a return promise.

false

True or false: If the offeree makes a mistake and sends the acceptance to the wrong address, there is acceptance on dispatch.

A

Which of the following is an element for the creation of a valid contractual offer in common law? A. You need the intent to be bound by an acceptance of the offeree. B. The offer must be in writing. C. The offer must be approved by a court. D. The offer must be profitable to the offeror.

B

Which party to a contract can revoke an offer at any time? A. Beneficiary B. Offeror C. Offeree D. Local magistrate

A,C

What conditions would legally cause an offer to be immediately terminated? (Check all that apply.) A. Death of the offeror B. Breach of offer by offeror C. Offeror loses legal capacity to be in a contract D. Offer becomes unprofitable to offeror

D

If a contractual offer becomes illegal, what is status of the offer? A. It becomes an option contract, allowing for both sides to obtain a waiver. B. It is valid since the offer was made prior to the illegality. C. The contract is valid until a court has an opportunity to review status of the contract and deem it void. D. It is immediately terminated.

Offeree; offerer

A counteroffer is made from the ______ to the ______.

no; reasonable

According to the Restatements of Contracts, if ______ mode of communication is specified in the offer, then any ______ means of acceptance is valid.

silence

As a general rule, ______ cannot be used to form a contract.

A

If an acceptance is sent to the wrong address and never arrives at the correct address, then there is: ______. A. no contract B. no offeree C. a valid offer D. a correct dispatch

estoppel; subjectively

In order for a court to recognize promissory _______, the offeree must have ______ relied on the promise of the offeror and taken action that has now caused some form of harm.

implied in fact

In this case, a(n) _______ contract is created when the offeree is silent but receives a legal benefit.

A,D,E

To create a valid offer under the common law, you need the following: _______. (Check the THREE correct answers) A. intent to be bound by an acceptance B. reasonable terms C. communication to the offeror D. definite and certain terms E. communication to the offeree

B

Under the mailbox rule, a revocation is effective: _______. A. when the offeror puts the revocation in the mail B. when received by the offeree C. when the offeree acknowledges receipt of the revocation D. one week after the offeror mails the revocation

C

Which of the following is an element in the formation of a contractual offer? A. Offer must be communicated to a third party so it can be verified. B. Offer must include value of over $500 and the value of the contract must be warranted C. Offer must include serious intent by the offeror to be bound to an agreement D. Offer must be in writing and signed by the offeror

Offerer

Which party to a contract is said to be the "master of their offer"?

previous; acceptance

______ course of dealings between the parties could establish a pattern of behavior whereby it is reasonable to assume that the offeree's silence constitutes _______.

silence; acceptance

______ in the previous course of business dealings can create _______ of a contract under common law.

D

If an offer is for a unilateral contract, the offeree can accept only by providing the requested performance. Suppose Bill offered to pay $500 to anyone who returned his lost dog to him. Mary could accept by:______. A. promising to return the dog B. looking for the lost dog C. intending to return the dog D. returning the dog

C

In an option contract, the offeree gives consideration to the offeror: _______. A. to give the courts the option to cancel the contract B. to have an offer that is promised to produce a profit for the offeree C. to have an offer that cannot be revoked by the offeror for a period of time D. to name a third party beneficiary who will have rights under the contract

revocation;valid

In the event that _______ of an offer is sent but not received, and then acceptance to the offer is communicated, a _______ contract is formed.

implied; acceptance

The means by which the offeree communicates _______ to an offer may either be expressly stated or ______.

offer;immediately

A(n) ______ terminates _______ if the offeror dies or loses the legal capacity to enter into the contract.

B,C

A valid contractual offer must be communicated to what party? (Check all that apply.) A. The secretary of state's office in order to have the contract registered B. The offeree C. The agent of the offeree who is acting on behalf of the offeree D. The district court to ensure a valid record in case of a future dispute

C,D,E

A valid offer under common law requires which of the following elements? (Check all that apply.) A. The offer must be in writing. B. The offer must be profitable for the offeror. C. There must be definite and certain terms. D. You need the intent to be bound by an acceptance. E. The offer must be properly communicated to the offeree.

D

An offeror may try to avoid being bound to a contract by later claiming she was only joking when she made the offer. Which of the following is an accurate statement regarding the willingness of a court to consider such evidence? A. Courts are receptive to such evidence if it relates to a contract for the provision of services. B. Courts are receptive to such evidence if it relates to a contract for the sale of goods transaction. C. Courts always are interested in hidden intent in contract interpretations. D. Courts are generally not interested in such evidence of hidden intent. E.Courts are receptive to such evidence if it relates to a contract for the sale of real estate.

C

As a general rule, a revocation is effective: _______. A. 24 hours after the offeror notifies the offeree B. when the offeror decides to cancel the offer C. when offeree receives the revocation D. only after agreement by the offeree

B,D

As a general rule, a(n) ______ of an offer is effective when the offeree receives it. (Choose TWO correct answers) A. counter-offer B. revocation C. estoppel D. termination

B

As a general rule, what effect does silence have in formation of contracts? A. Silence means that the offeree fully accepts all the offeror's terms. B. Silence cannot be used to form a contract. C. Silence means the offeree accepts the contract, but agrees to work on details of contract later. D. Silence is only acceptance if witnessed by a third party.

B

Assume that an offer merely authorizes certain modes of acceptance, but does not condition acceptance on the use of those modes. In such a situation, if the offeree uses an unauthorized means of acceptance: _______. A. there is no valid contract, since the offeree used an unauthorized means of communication B. the acceptance creates a valid contract upon receipt by the offeror C. there is a voidable contract, and the offeror can decide if the contract is valid D. It is deemed as a counteroffer for the offeror to decide to accept or reject

C

Death of an offeror will have what effect on a contractual offer? A. The offeree will have 30 days to accept the offer after the offeror has died and the heirs of the offeror will be bound to contract. B. The offeree will have 10 days to accept the offer after the offeror has died and the heirs of the offeror will be bound to contract. C. It will cause the offer to be terminated. D. Death will have no impact on the contractual offer, since it has already been communicated to the offeree.

reasonable; begun performing

For unilateral contracts, if the offeree has ______, then the offeror must give the offeree a _________ period of time to complete it. reasonable fixed begun performing promised

D

How would a court likely respond to an offeror's attempt to avoid contract liability by claiming she was merely joking when she made an offer to the offeree? (Assume the offeree accepted the offer based on the reasonable belief that the offer was legitimate.) A. Applying fundamental notions of equity, the court would refuse to enforce the contract due to the offeror's lack of subjective intent. B. Applying well-established principles of common law, the court would refuse to enforce the contract due to the offeror's lack of subjective intent. C. The court would only consider the intent of the offeror's hidden intent. D. The court would enforce the contract, since courts are not usually interested in an offeror's hidden intent.

b

If an offer states that it is good for thirty days, what happens in thirty days if the offeree has not responded? a. The offer is void because an offer can only be open for a period of 20 days. b. The offer terminates immediately. c. Under common law, an additional thirty days would be given to the offeree. d. The offer is voidable, and valid until the offeror publicly indicates that the offer is rescinded

D

If no means of communicating an acceptance is specified, what means will be accepted? A. If no means of communication is listed, then the offer is not valid and no contract can be formed. B. Only written means of communication are allowed. C. Only in-person communication will be accepted for an acceptance. D. Any reasonable means including telephone, mail, fax, email and in person communication.

A,B

If the offer does not make it clear how the offeree should respond, in what way can the offeree respond under the contract? (Check all that apply) A. By performing the required acts of the contract B. By giving the offeror a return promise as consideration C. By suing the offeror for breach of contract in civil court D. By unilaterally submitting the case to binding arbitration

acceptable

If the offer merely authorizes certain modes of acceptance, but does not condition acceptance on the use of those modes, use of an unauthorized means of acceptance is: _______.

C

If the subject matter of a contractual offer is destroyed, then what is the status of the offer? A. The offeror is liable for a breach of contract for allowing the destruction. B. The offer is converted to an option contract to allow parties to find substitute consideration. C. The offer is immediately terminated. D. There is no change. All parties must continue with their contractual obligations.

D

If there is no stated period when the offeree must accept or reject an offer, when will the offer expire? A. The offer is open for a period of 30 days. B. Due to the rules against perpetuities, the contract will remain open for twenty years then must be renewed. C. Never. Without a stated period the offer remains open for the offeree to accept, unless the offeror withdraws the offer. D. The offer will expire after a reasonable period of time.

b

In a bilateral contract, the offeror is expecting what action from the offeree? a. Payment in cash b. A return promise c. Expected performance by the offeree as required under the contract d. No action

b,d

In a bilateral contract, which parties are giving promises as consideration for a contract? (Check all that apply.) a. 3rd party beneficiary b. Offeree c. The court d. Offeror

A,D

In general, what are the ways an offeree can manifest intent to enter into a contract? (Check all that apply.) A. By giving the offeror a return promise (e.g., promise to pay contract value) B. By contacting the secretary of state's office to indicate that the requested offer is accepted C. By having a general conversation about a proposed offer D. By performance of the requested actions under the offer and contract

A,B,D

In the absence of a description in the offer of what form of communication must be used to form a valid acceptance, what methods of communication are generally accepted as reasonable? (Check all that apply.) A. In person communication B. Telephone communication C. Silence on the behalf of the offeree D. Email communication

D

In the event that a revocation of the offer is sent, but the offeree communicates acceptance to the offer before the revocation is received, A. a contract only exists if it was an option contract. B. no contract exists due to the revocation being sent first. C. no contract exists, but there is now a counteroffer from the offeree. D. a valid contract has been formed.

A

Once an offeree rejects an option contact (a contract open for a predetermined period of time), what happens? A. The contract is immediately terminated. B. With an option contract, following a rejection, there is a 72 hour cooling off period before the contract is terminated. C. Nothing happens. D. The contract will be valid until the open period ends and the offeree can change his or her mind.

agree; acceptance

Parties to a contract can ______ that silence will constitute a valid _______ by the offeree.

acceptance

Parties to a contract can agree before hand that the silence is a form of ______.

C

Promissory estoppel requires what form of contractual mindset? A. That the contract has to be profitable to be enforceable B. That all parties are of the same mindset and no party has been harmed C. Detrimental reliance on the offer D. That parties wish to turn over rights in a contract to a 3rd party agent

A

Suppose Jeremy offers a job to Carol but states in the offer, "I must receive your acceptance by email before 5:00PM September 5" Carol puts her signed acceptance in the mail September 3rd but the acceptance does not arrive until September 7th. Jeremy and Carol have: _______. A. no agreement, because Carol did not accept in the manner and time specified in the offer B. an agreement, even though Carol did not accept in the manner and time specified in the offer C. a binding counter-offer under the mirror-image rule D. a binding revocation under the mirror-image rule

A

Suppose Joseph calls Justin and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and says I'd like to hire you for $15/hour? This is a valid: _______. A. counter offer B. rejection C. revocation D. acceptance

rejection

Suppose Joseph calls Justin and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and wants to hire him based on the previously discussed terms. This is a valid: _______.

mailbox

The ______ rule states that an acceptance is valid when mailed and a revocation is only effective when received.

C

The creation of a valid contractual offer requires what elements? A. Intent of the offeror for an agreement, consideration over $500 and the offer is in writing B. Offeror must have the offer put under seal. C. Intent of the offeror for an agreement, definite terms and offer communicated to offeree D. Offeror must have proposal that will create profit, terms of the offer must be definite and the offer must be communicated to the offeree

A,C

The means by which the offeree can communicate a valid acceptance to the offeror may be: _______. (Check all that apply.) A. implied from the facts and circumstances surrounding the communication of the offer to the offeree B. determined by the secretary of state of the jurisdiction in which the parties contract C. expressly stated in the offer D. determined by the provisions of the UCC, especially if the parties have expressly stipulated the means of acceptance in their contract

acceptance; image

The mirror _______ rule says that all terms of an offer must mirror the terms of the ______ given by the offeree.

offeror

The name of the party initiating an offer for a contract is the: _______.

A,D

Under common law, a valid contractual offer will be:_______. (Check all that apply.) A. definite in its terms B. delivered with a fixed deadline C. delivered with an uncertain deadline D. certain in its terms

A,C

Under common law, what are the necessary elements of a valid contractual acceptance? (Check all that apply.) A. The acceptance will have the definite and certain terms of the offer. B. The agreement is in the same language as the offer. C. The intent by the offeree to be bound by acceptance of contract. D. The agreement will be profitable for the offeree.

A

Under common law, what types of terms must be included in a valid contractual offer? A. Material terms, all major items necessary for mutual consent that are clearly laid out B. Terms that will be left unresolved for future negotiation C. Terms that are written only D. Open terms that the contract leaves vague for parties to see conditions later

C

Under the Restatement (Second) of Contracts, if no mode of communication is specified in an offer, then acceptance: _______. A. must be in person B. must be in written reasonable form C. can occur through any reasonable means D. must be by the court

C

Under the common law mirror-image rule, when is a counter offer formed? A. When the offeree accepts the offer, but files a protest with the Secretary of State B. When the offeree remains silent and does not communicate an acceptance C. When the offeree's acceptance does not include all of the terms of the offeror's offer D. When the offeree changes their mind about the offer

B

Under what circumstances will an offeror not be able to rescind a unilateral contract offer? A. If the offer is in writing B. In instances where the offeree has already started to perform under the contract C. If the contract is registered with the secretary of state's office D. Where the offeree has expressed that he or she will lose money if the contract is not executed

C,D

What are methods by which termination of a contractual offer can occur? (Check all that apply.) A. Offeror refuses to spend the money that offeree gives as part of acceptance and consideration B. Offeror can send notice to the secretary of state's office C. Counteroffer by the offeree D. Revocation by the offeror

A,C

What are some things that could be material terms in a valid contract? (Check all that apply.) A. Price of goods B. The details of void contracts that were previously signed C. Parties involved D. Information on length of time businesses have been in operation

A,D

What are the names of the parties that form a contract? (Check all that apply.) A. Offeror B. Incorporater C. Beneficiary D. Offeree

A

What form of intent must an offeror have in creating a contractual offer? A. Intent to be bound by the offeree's acceptance B. Intent to profit by the agreement C. Intent negotiate the offer prior to agreement. D. Intent to have the agreement concluded in 24 hours

A

What is the standard that courts use to interpret contracts? A. Objective standard B. Multi-theory standard C. Thought processes standard. D. Subjective standard

A

What is the term for an offer made by the offeree to the offeror proposing a substituted bargain differing from the original proposed offer? A. Counteroffer B. Agency C. Consideration D. Promissory estoppel

C

What type of contract allows the offeree a fixed amount of time to consider an offer without the offeror being able to revoke the contract during that fixed period of time? A. Martial contract B. Unilateral contract C. Option contract D. Bilateral contract

b

What type of contract is formed when the offeree receives the benefits of offered services with a reasonable opportunity to reject them and knows that some form of compensation is expected, yet remains silent? a. Conditional b. Implied-in-fact c. Express d. Bilateral

b

Which of the following is not a basic common-law requirement for a valid acceptance? a. The offeree's communication of the acceptance to the offeror b. The offeree's written acceptance, dispatched by certified mail, to the offeror c. The offeree's manifestation of intent to be bound by the acceptance and the resulting contract d. The offeree's agreement to the definite and certain terms of the offer

A

Who can accept a valid offer that will create a binding contract? A. Only the offeree or his or her agent B. The secretary of state in the state of the offeror C. Any person that knows about the offer. D. District court judge in the state of the offeree

offerer

Who has the power to decide by what means an offer can validly be accepted?

Material

______ terms allow a court to determine damages if one of the parties breaches the contract.