CL Ch. 14 Review
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:
rejection
What are the elements of a contractual offer?
offer must contain definite terms, intent by the offeror to be bound by the agreement, offer must be communicated to the offeree
Death of an offeror will have what effect on a contractual offer?
offer will be terminated
A valid contractual offer must be communicated to what party?
offeree or the offeree's agent
The name of the party initiating an offer for a contract is the:
offeror
Which party to a contract can revoke an offer at any time?
offeror
Which party to a contract is said to be the "master of their offer"?
offeror
Who has the power to decide by what means an offer can validly be accepted?
offeror
a valid offer includes:
offers communicated by the offeror to the offeree or offeree's agent
Promissory estoppel is the contractual concept that:
one party reasonably relied on another's promise and due to that reliance, the court won't allow the revocation of the offer now
Macon is planning to buy Kevin's car for $15,000. He gives Kevin $1,500 to keep the offer open for 30 days. Kevin will deduct the $1,500 from the price of the car if Macon purchases the car within the 30 days. If Macon does not buy the car during that time, Kevin will keep the $1,500 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate?
option contract
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?
option contract
Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?
Louis has not accepted the offer as required by the offeror, and there is no contract.
Under the common law mirror-image rule, when is a counter offer formed?
When the offeree's acceptance does not include all of the terms of the offeror's offer
When is it reasonable to assume that the offeree's silence constitutes acceptance?
When the previous course of dealings between the parties have established such a pattern of behavior
Parties to a contract can agree before hand that the silence is a form of
acceptance
If there is no stated period when the offeree must accept or reject an offer, when will the offer expire?
after a reasonable period of time
In a(n) ______ contract, the offeror makes a promise in return for a promise from the offeree.
bilateral
In this case, a(n) _______ contract is created when the offeree is silent but receives a legal benefit.
implied-in-fact
Under the Restatement (Second) of Contracts, if no mode of communication is specified in an offer, then acceptance:
can occur through any reasonable means
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?
implied-in-fact
If a contractual offer becomes illegal, what is status of the offer?
it is immediately terminated
______ terms allow a court to determine damages if one of the parties breaches the contract.
material
the terms of an acceptance that reflect the terms of an offer are known as the ____ rule
mirror-image
Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances, Felipe makes a _____ when he offers to buy the clock for $3,000
new offer
when deciding whether an offeror intended to be bound by the offer, the courts use the ____ standard
objective
What is the standard that courts use to interpret contracts?
objective standard
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:
returning the dog
As a general rule, what effect does silence have in formation of contracts?
silence cannot be used to form a contract
Once an offeree rejects an option contact (a contract open for a predetermined period of time), what happens?
the contract is immediately terminated
how is an offeror's intent to be bound by an agreement demonstrated?
the courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions
If the subject matter of a contractual offer is destroyed, then what is the status of the offer?
the offer is immediately terminated
under common law, if the offeree's acceptance with terms that are not identical to the offeror's terms, then which of the following is true?
the offeree's attempted acceptance is considered a counteroffer rather than an acceptance
In an option contract, the offeree gives consideration to the offeror:
to have an offer that cannot be revoked by the offeror for a period of time
Under the mailbox rule, acceptance is valid:
when it is mailed by the offeree
as a general rule, revocation is effective
when offeree receives revocation
Under the mailbox rule, a revocation is effective:
when received by the offeree