Chapter 11
Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract?
Common Law
Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective upon dispatch even if it uses means other than those specified in the offer
False
What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror?
It is effective when received.
Which of the following would indicate a rejection under the mirror image rule?
Material changes to offer
Which of the following actions is considered to reflect a counteroffer?
Offeree reflected assent to the terms of the offer in the requisite manner
Which of the following considers a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time to be effective on dispatch?
Restatement (Second)
Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?
Such an action implies a rejection of the offer by the offeree.
Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants?
The offer expressly limits acceptance to its own terms.
April Roberts ordered hundred 19-inch color television sets from Carl Soans and requested for a prompt shipment of the goods. Carl promptly shipped fifty 21-inch color television sets and fifty 19-inch color television sets without informing April that the shipment of nonconforming television sets was an accommodation. Which of the following is true?
There is an acceptance but Carl has breached the contract by shipping nonconforming television sets.
Ian Kendler makes Brian Hyson an offer for a plot of land. In the offer, Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service. Which of the following is true? Assume that the Restatement (Second) of Contracts does not apply.
There is no acceptance and no contract.
Acceptances by instanteous forms of communication are effective imeeditately upon communication to the offereor
True
An acceptance is assent to a proposal by the offeree to the offeror.
True
If the offeree accepts the offeror's terms while complaining about them, it is called a grumbling acceptance.
True
On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract?
Yes, because Trista dispatched the telegram prior to 2:00 p.m.
The shipment of nonconforming goods intended as an accommodation to the buyer is a(n)
counteroffer
In general, the mailbox rule is beneficial to:
the offeree.
What does the term 'grumbling acceptance mean?
Accepting an offer while complaining about the terms
Transfer of title deeds is a function wherein silence signals acceptance of the offer
False
When determining the presence of intent to accept, a subjective standard is used
False
Ian Sanders offered to sell his car to Beth Jones for $5,000 with Beth's agreement. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n)
additional term
In a contract for the sale of land, how close must the terms of the acceptance be to the terms of the offer, in order to form a contract?
They must be identical or almost identical.
Kevin offered to mow the lawn for his Uncle Jordan's for $100. To his offer, Uncle Jordan replied by saying "I know you're taking advantage of me but I accept." Uncle Jordan has indeed accepted the offer made by Kevin.
True
when an offer is unclear about the form of acceptance it requires , ideall it must not be accepted
false
To accept an offer for a bilateral contract, the offeree must perform the requested act
False
To accept an offer for a unilateral contract, the offeree must make the promise requested by the offer
False
What is the term for "a manifestation of assent to the terms made by the offeree"?
The Acceptance
Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without communicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green?
There is a contract because Mr. Green accepted by implied action
In recent times, the mirror-image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.
True
The intention to accept an offer must be a present intent to contract.
True
According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _____ and the appropriate gap- filling presumptions of the Code.
terms on which the parties writings agree
Mr. Blue enters into negotiation with Mr. Green to build a house. Both parties expected a written and signed purchase agreement. After agreeing on terms, Mr. Green is told by his subcontractors that some of their prices have gone up. Mr. Blue objects and indicates that there was a contract when the parties agreed to the original terms orally. A court will find that indeed no contract existed since the parties expected acceptance to be in written form.
true
Which of the following describes a stipulation?
An offeror's right to determine the manner of acceptance
Which of the following is true regarding silence as an acceptance?
An offeree silence is considered acceptance when he/she indicates so.
Mr. Green creates a unilateral contract with nephew Paul. Mr. Green promises to buy Paul a laptop if he gets accepted to college. In order for Paul to accept this contract what must he do?
Get accepted into college
What can an offeror do to minimize the risk posed by the mailbox rule?
Include a receipt stipulation in the contract
The intent to accept is objectively demonstrated by words or conduct or a combination of the two
True
Which of the following actions is considered to reflect a counteroffer?
a demand for additional terms
The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.
false
When Carol Whittaker makes an offer to a contractor Jacob Phelps directing him to inform her of his acceptance through registered letter mail she is making an ambiguous offer
false
The original offeree is one who:
has the legal power to accept an offer and create a contract.
Which of the following actions constitutes the acceptance of an offer?
offeree reflected assent to te terms of the offer in the requisite manner
In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.
present intent to contract
In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.
present intent to contract
An ambiguous offer may be accepted in any manner that is _____ in light of the circumstances.
reasonable
The only person with the legal power to accept an offer and create a contract is the original offeree
true
What section of the UCC states that an order to a manufacturer requesting shipment of goods may be accepted by a prompt shipment of the goods?
2-206
Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse of each form, there were minor terms that conflicted with each other. What is impact of these minor differences in terms in the forms on the contract?
A contract does exist and it includes the terms agreed upon plus gap-fillers from the UCC.
How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance?
By holding that the offeree performance has made it a bilateral contract
Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?
No, because Wrights letter was a counteroffer to the original offer.
You wish to download free software from the Internet. The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another web page. The "download now" page has a button that initiates the download process. You click that button without going to the licensing agreement page and find that it contains an arbitration provision. Are you bound by this provision?
No, because you did not perform an action that indicated your assent to the licensing agreement.
Which party to contract negotiations is the master of the offer and can specify what behavior is 11-30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. necessary to constitute a valid acceptance?
The Offeror
Which of the following is true regarding the approach taken by the UCC toward the proper means of acceptance and the implications of using it or not using it?
The UCC does not change the traditional rule that, where the offer stipulates a certain means of acceptance, the offeree must use that means or there is no contract.
Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true?
The acceptance is effective upon dispatch.
Mr. White sends his acceptance for a business contract to Mr. Green. But Mr. White put insufficient postage on the envelope. One day later Mr. Green revokes the offer through the mail. Mr. White upon receipt of the undelivered acceptance, Mr. White overnighted the acceptance letter to Mr. Green. The court will find if it applies the UCC rule that a valid acceptance occurred and subsequent contract is now created between Mr. White and Mr. Green.
True
The UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.
True
The intention to accept an offer must be a present intent to contract
True
Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract? Assume that Bill did not make its acceptance conditional on Debbie's assent to any additional or different terms.
When Bill form is a definite and seasonable expression of acceptance.
Sue Sandon and Joe Rhine have concluded their agreement in all substantial matters of their contract for goods offer like price, quantity, and mode of delivery but the formal written agreement has not been signed yet. Is there a binding contract at present?
Yes, because a contract is formed at the time the agreement is concluded.
An offer which is unclear about the form of acceptance that is necessary to create a contract, is called a(n) _____ offer.
ambiguous
Under the common law, an offer for a unilateral contract:
is accepted by full performance of the act requested by the offer.
A bilateral contract is accepted by when the offeree:
makes the promise requested by the offer.
Arthur offered to sell his house to Mike for $50,000. Even before Mike responded to the offer, Jack learnt of the offer and called up Arthur to accept the offer. Jack's action represents a(n)
offer
Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter" and this detail is an example of a _____.
stipulation
When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as _____.
stipulation
Under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless:
the acceptance is not in the authorized mode of communication.
Mr. White contracts with Mr. Green for 100 black coffee mugs for a party. Mr. White decides he needs the mugs faster than the time allotted in the contract, and asks for a rush shipment. Mr. Green notifies Mr. White that he will ship 100 coffee mugs but that the only ones available are red. A court will find that the shipment of red mugs under the UCC is not a breach of the original agreement.
true