6-2 business law

an offeror is not legally obligated to keep an offer open for a specified time even if what?

even if the offeror has promised to do so, This may cause the offeree not to pursue the offer or to act without proper consideration to close the deal.

If either the offeror or offeree is deemed insane, the law will...

...terminate any offers made

When an offeree clearly rejects the offer, the offer is...

...terminated.

Unless renewed by the original offeror...

...the offeree can no longer accept the original offer.

When an offeree changes the offeror's terms in important ways, the offeree makes a...

...counteroffer

firm offers hold legal and liable even when...

...even when nothing is paid by the offeree.

If an offeree gives the offeror something of value to keep an offer open, the contract thereby created is called an...

...option

what is the time limit for Uniform Commercial Code (UCC)

3 months

merchant

A person who makes money by selling goods

what automatically eliminates contract control?

Death or insanity. Therefore the law acts for these parties when they can no longer act and terminates their offers.

(True/False) An offeree who rejects an offer can later accept it if the acceptance occurs within a reasonable time after the original offer.

False

If a hardware store salesclerk said, "This price on the lawnmowers is good for 30 days," would this be a firm offer?

No

(True/False) If a time for the offer to expire is not stated, it will expire in a reasonable time under the circumstances.

True

True/False: an offeror can revoke an offer any time before it is accepted EVEN WHEN the offeror promised that the offer would remain open for a particular period.

True

If a beauty salon hair designer said to a customer, "This price on the cut and dry is good for 30 days," and then wrote it down on a piece of paper and signed it, would this be a firm offer?

Yes

Contracts are agreements voluntarily entered into by who?

by parties and subject to their control.

firm offer

contractual proposal in writing by a merchant stating how long the offer is to stay open

what does not describe an event that will terminate an offer?

death of offere

When nothing is said in the offer about how long it will remain open,

it will end after a reasonable length of time.

counteroffer

offeree's response to an offer which modifies it

option

separate contract arising when the offeree gives the offeror something of value in return for a promise to leave an offer open

If an offeree clearly rejects the offer, the offer is termed

terminated

if the offeree has purchased an option,

the offer will remain open until the option expires even if the offeree and buyer of the option rejects it beforehand or makes a counteroffer.

steps of a counteroffer

the offeree says in legal effect, "I refuse your offer; here is my proposal." The counteroffer terminates the original offer. The counteroffer then becomes a new offer.

when making an offer,

the offeror may state how and when the offer must be accepted.

what makes a time reasonable?

the time is reasonable based on the circumstances

A firm offer is valid for no more than

three months

the time available for acceptance should be specified at the outset to avoid WHAT?

to avoid misunderstandings

True/False: After an offer has been made, the offeror can generally revoke it anytime before it is accepted by the offeree.

true

a produce broker in New Jersey telephones a customer in Florida offering to sell a truckload of tomatoes. If the offer to sell the tomatoes is not accepted within an hour, it probably will terminate WHEN?

very soon

what is one way an offer is terminated?

when an offeree rejects the offer even if a time limit set by the offeror has not expired.

what also automatically terminates a contract?

when the object at question is destroyed

revocation

withdrawing an offer before it is accepted