Chapter 10

T/F A reward is a form of bilateral contract.

FALSE

T/F An option contract is terminated upon the death of the offeror.

FALSE

T/F If an offeree dispatches a rejection before an acceptance, then the rejection will not be applicable.

FALSE

Which of the following statements is true of a counteroffer? A counteroffer need not be communicated to the offeror. A counteroffer can only be made by the offeror. A counteroffer terminates the existing offer. An offeree that makes the counteroffer is still considered the offeree.

A counteroffer terminates the existing offer.

A(n) ________ is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts. revocation acceptance counteroffer proposal

ACCEPTANCE

After losing her watch, Jennifer had put up a reward offer in the local newspaper for anyone who could find and return her watch. However, after two weeks she decides to buy a new watch and not pay the reward anymore. Betty, who found the watch and saw the reward offer, returns the watch to Jennifer after 20 days. Which of the following would be true about Betty receiving or not receiving the reward? Betty cannot claim the reward because she had not performed all the requested acts. Betty can claim the reward because Jennifer had not published a notice of revocation. Betty will not receive the reward as Jennifer had already revoked it. Betty will not receive the reward as Jennifer had stopped publishing the reward offer.

Betty can claim the reward because Jennifer had not published a notice of revocation.

Which of the following is true for legally claiming a reward? The offeror cannot withdraw the reward once the offer has been placed in the public domain. The claimant can claim the reward even if he or she came to know of the reward subsequent to completing the act. Knowledge of the reward before completing the requested act is necessary to claim the reward. A promise of completing the requested act is sufficient for a claimant to claim the reward.

Knowledge of the reward before completing the requested act is necessary to claim the reward.

T/F A contract requires an offer and an acceptance.

TRUE

T/F An offer terminates upon the expiration of a stated time in the offer.

TRUE

T/F Identification of the parties of a contract would be an express term.

TRUE

T/F In an auction with reserve, the seller retains the right to refuse the highest bidder.

TRUE

T/F In an auction without reserve, the seller is the offeree.

TRUE

T/F Without mutual assent, there is no contract.

TRUE

Which of the following statements is true of an offer that was not communicated? The offer is considered to be an implied term. The offeree can claim an offer that was not communicated. The offer cannot be accepted by the offeree if not communicated. The offer stays valid for 30 days from the date of creation.

The offer cannot be accepted by the offeree if not communicated.

Quentin is a member of the Album of the Month Club and receives a new music CD every month without fail. The Club usually gives its members a time period within which they can reject the selection and stop shipment of the CD, failing which the CD will be shipped. Last month, Quentin received a CD from Album of the Month Club, a copy of which a friend had already gifted him. As he was away, Quentin had not found time to reject the selection and had to buy the CD. What kind of an offer-acceptance model does Album of the Month Club have? silence as acceptance unequivocal acceptance acceptance-upon-dispatch mirror image rule acceptance

silence as acceptance

T/F A counteroffer is a rejection of the original offer.

true