Smartbook chapter 14

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

False

Which of the following is an element in the formation of a contractual offer?

Offer must include serious intent by the offeror to be bound to an agreement

Which party to a contract can revoke an offer at any time?

Offeror

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 valid contract has been formed.

The means by which the offeree can communicate a valid acceptance to the offeror may be: _______. (Check all that apply.)

expressly stated in the offer & implied from the facts and circumstances surrounding the communication of the offer to the offeree

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

image & acceptance

Promissory estoppel requires what form of contractual mindset?

Detrimental reliance on the offer

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

Material

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

Previous & Acceptance

A valid contractual offer must be communicated to what party? (Check all that apply.)

The offeree & The agent of the offeree who is acting on behalf of the offeree

Which of the following is not a basic common-law requirement for a valid acceptance?

The offeree's written acceptance, dispatched by certified mail, to the offeror

Using the objective standard to establish contractual intent, courts are concerned with looking at which of the following? (Check all that apply.)

Words and documents in public from the parties regarding the agreement & Actions and behavior of the parties in public regarding the agreement

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: _______.

acceptable

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

acceptance

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

acceptance & agree

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

begun performing & reasonable

In a(n) ______ contract, the offeror makes a promise in return for a promise from the offeree. (Check the BEST answer)

bilateral

Under the Restatement (Second) of Contracts, if no mode of communication is specified in an offer, then acceptance: _______.

can occur through any reasonable means

Under common law, a valid contractual offer will be:_______. (Check all that apply.)

certain in its terms & definite in its terms

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: _______.

counter offer

If a contractual offer becomes illegal, what is status of the offer?

it is immediately terminated

As a general rule, a(n) ______ of an offer is effective when the offeree receives it. (Choose TWO correct answers)

revocation & termination

In a bilateral contract, the offeror is expecting what action from the offeree?

A return promise

Under what circumstances will an offeror not be able to rescind a unilateral contract offer?

In instances where the offeree has already started to perform under the contract

The creation of a valid contractual offer requires what elements?

Intent of the offeror for an agreement, definite terms and offer communicated to offeree

What form of intent must an offeror have in creating a contractual offer?

Intent to be bound by the offeree's acceptance

Death of an offeror will have what effect on a contractual offer?

It will cause the offer to be terminated.

What is the standard that courts use to interpret contracts?

Objective standard

If the subject matter of a contractual offer is destroyed, then what is the status of the offer?

The offer is immediately terminated.

If an offer states that it is good for thirty days, what happens in thirty days if the offeree has not responded?

The offer terminates immediately

If there is no stated period when the offeree must accept or reject an offer, when will the offer expire?

The offer will expire after a reasonable period of time.

Which of the following is an element for the creation of a valid contractual offer in common law?

You need the intent to be bound by an acceptance of the offeree.

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

silence

As a general rule, a revocation is effective: _______.

when offeree receives the revocation

If no means of communicating an acceptance is specified, what means will be accepted?

Any reasonable means including telephone, mail, fax, email and in person communication.

In general, what are the ways an offeree can manifest intent to enter into a contract? (Check all that apply.)

By performance of the requested actions under the offer and contract & By giving the offeror a return promise (e.g., promise to pay contract value)

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)

By performing the required acts of the contract & By giving the offeror a return promise as consideration

What are methods by which termination of a contractual offer can occur? (Check all that apply.)

Counteroffer by the offeree & Revocation by the offeror

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?

Courts are generally not interested in such evidence of hidden intent.

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.)

Email communication & Telephone communication & In person communication

Under common law, what types of terms must be included in a valid contractual offer?

Material terms, all major items necessary for mutual consent that are clearly laid out

What are the elements of a contractual offer? (Check all that apply.)

Offer must contain definite terms & Intent by the offeror to be bound by the agreement & Offer must be communicated to the offeree

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

What are the names of the parties that form a contract? (Check all that apply.)

Offeror & Offeree

What conditions would legally cause an offer to be immediately terminated? (Check all that apply.)

Offeror loses legal capacity to be in a contract & Death of the offeror

Who can accept a valid offer that will create a binding contract?

Only the offeree or his or her agent

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

What are some things that could be material terms in a valid contract? (Check all that apply.)

Parties involved & Price of goods

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

Silence & Acceptance

As a general rule, what effect does silence have in formation of contracts?

Silence cannot be used to form a contract.

Under common law, what are the necessary elements of a valid contractual acceptance? (Check all that apply.)

The acceptance will have the definite and certain terms of the offer. & The intent by the offeree to be bound by acceptance of 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 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.)

The court would enforce the contract, since courts are not usually interested in an offeror's hidden intent.

A valid offer under common law requires which of the following elements? (Check all that apply.)

You need the intent to be bound by an acceptance. & There must be definite and certain terms. & The offer must be properly communicated to the offeree.

Under the common law mirror-image rule, if an offer and acceptance do not have the exact terms in the contract, then the acceptance is treated as a(n) _______.

counter offer

What is the term for an offer made by the offeree to the offeror proposing a substituted bargain differing from the original proposed offer?

counteroffer

To create a valid offer under the common law, you need the following: _______. (Check the THREE correct answers)

definite and certain terms & intent to be bound by an acceptance & communication to the offeree

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.

estoppel & subjectively

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

image & acceptance

The means by which the offeree communicates _______ to an offer may either be expressly stated or ______. (Choose best TWO answers)

implied & acceptance

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

implied-in-fact

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

mailbox

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

no & reasonable

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: _______.

no agreement, because Carol did not accept in the manner and time specified in the offer

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

offer & immediately

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.

offeror

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

offeror

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

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

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

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

revocation & valid

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: _______.

the acceptance creates a valid contract upon receipt by the offeror

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, a revocation is effective: _______.

when received by the offeree

If an acceptance is sent to the wrong address and never arrives at the correct address, then there is: ______.

no contract