Worksheet 11.1: Agreement
Counteroffer
A rejection of the original offer and the making of a new offer.
Rejection
Accomplished by words or actions that demonstrate a clear intent not to accept the offer; not effective until received by the offeror or the offeror's agent.
14. An acceptance must match the terms of the offer exactly in order to be valid. This is known as the mailbox rule.
F
3. An effective offer requires that a reasonable price be related to market value.
F
Death or Incompetence of the offeror or offeree
If the offeror or offeree dies or becomes incompetent, this offer terminates (unless the offer is irrevocable).
The consideration to be paid.
In the term
The identification of the object or subject matter of the contract
In the term
The offer must be communicated to the offeree.
In the term
The offeror must have a(n) serious intention to become bound by the offer.
In the term
The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.
In the term
The time of payment, delivery, or performance.
In the term
8. In an auction, the auctioneer acts as the
Offeree
1. Agreement is normally evidenced by an offer and an acceptance.
T
10. The requirement that an offer be properly communicated to the offeree means that the offeror must inform the offeree about the offer in some effective way.
T
15. The mailbox rule means that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective.
T
17. An acceptance sent by means not expressly or impliedly authorized normally is not effective until it is received by the offeror.
T
Lapse of time
The offer terminates at the end of the time period specified in the offer or, if no time period is stated in the offer, at the end of a reasonable time period.
Revocation
Unless the offer is irrevocable, it can be revoked at any time before acceptance without liability.
Supervening illegality
When a statute or court decision makes the proposed contract illegal, the offer automatically terminates.
Destruction of the subject matter
When the specific subject matter of the offer is destroyed before the offer is accepted, the offer automatically terminates.
13. Which of the following occurrences will NOT terminate an offer?
a. acceptance
4. Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally CANNOT buy the car for $1,000:
b. because a reasonable person would know that a serious offer was not being made
5. Olivia says to Jim, "I think I'll sell my new digital camera for $100, because I'm never going to use it." This statement constitutes:
c. a statement of future intent
7. Jake chooses a pair of new running shoes from an online catalog. He is informed via e-mail that those shoes are sold out. What can Jake do?
d. look somewhere else because the online catalog did not make an effective offer
16. You receive a letter telling you that you will start receiving a box of fresh fruit each month and that if you don't want it, you have to reply within seven days. You ignore the offer. Your silence
does not constitute an acceptance of the offer
6. Which of the following statements could be a valid offer?
e. an auction without reserve
The identification of the
parties
