BLAW Chapter 12

If an offer has no stated time by which it must be accepted, when does the offer terminate?

After a reasonable period of time

Which of the following will terminate an offer?

Lapse of time.

Who may accept an offer?

Only the person to whom an offer is made may accept it

The offeree rejects the offer when she ignores the original offer and replies with a different offer. What is this called?

The counteroffer

A(n) __________ is the offeree's manifestation of intent to enter into a binding agreement on the terms stated in the offer

acceptance

divisible contract

agreement consisting of two or more parts, each calling for corresponding performances of each part by the parties.

Which of the following is true of an auction sale? a. In an auction "with reserve", the auctioneer takes the highest bid offered for the property. b. In an auction "without reserve", the property must be sold to the person making the highest bid regardless of how low that bid may be. c. The auctioneer must accept the highest bid offered in any auction. d. The bidder may withdraw a bid at any time before or after an auction.

b. In an auction "without reserve", the property must be sold to the person making the highest bid regardless of how low that bid may be.

To be effective, an offer must:

be communicated to the offeree.

For purposes of general contract law (common law), an offer must:

be sufficiently definite and certain.

output contract

contract of a producer to sell its entire production or output to a given buyer.

requirements contract

contract to buy all requirements of the buyer from the seller.

Quotations of prices, even when sent on request, are likewise not offers unless: a. the parties have had previous dealings. b. unless a trade custom exists. c. that would give the recipient of the quotation reason to believe that an offer. d. All of these are correct.

d. All of these are correct.

offer

expression of an offeror's willingness to enter into a contractual agreement.

Under the so-called __________, a properly addressed, postage-paid mailed acceptance takes effect when the acceptance is?

mailbox rule, placed into the control of the U.S. Postal Service

firm offer

offer stated to be held open for a specified time, under the UCC, with respect to merchants.

Retail stores typically put advertisements in newspapers describing goods and stating prices. These ads are generally considered to be:

offers only if they are not made by merchants.

counteroffer

proposal by an offeree to the offeror that changes the terms of, and thus rejects, the original offer.

In most cases, the offeree's __________ and failure to act cannot be regarded as acceptance.

silence

acceptance

unqualified assent to the act or proposal of another, such as the acceptance of an offer to make a contract; the acceptance of a draft (bill of exchange); the acceptance of goods delivered by a seller, or a gift of a deed.