quizzes

An offer is interpreted by the courts on a(n) ________

objective

Jorge offers to build Larry a garage for $20,000. The offer stated that acceptance in person was required. Within a reasonable time, Larry e-mailed Jorge his acceptance. Which of the following statements is true about this situation? - The acceptance by Larry will be presumed as an implied contract. - The agreement between Larry and Jorge will be valid but unenforceable. -Larry has not accepted the offer as required by the offeror, and there is no contract. - Larry has accepted the offer because an e-mail is a reasonable means of acceptance.

Larry has not accepted the offer as required by the offeror, and there is no contract.

Julio agrees to buy Sophia's computer for $1,000. However, Sophia tells Julio that she will only sell the computer to him if he pays $1,200. In this scenario, Sophia makes a(n):

counteroffer

Formation of a contract begins when the party initiating the contract, called the ________blank, makes an offer to another party, called the ________blank.

offeror, offeree

George is planning to buy Karl's car for $10,000. He gives Karl $1,000 to keep the offer open for 30 days. Karl will deduct the $1,000 from the price of the car if George purchases the car within the 30 days. If George does not buy the car during that time, Karl will keep the $1,000 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate?

Option contract

How is an offeror's intent to be bound by an agreement demonstrated? - The courts determine an offeror's intent based upon what that person's subjective principles are. - The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions. - The courts determine an offeror's intent based upon his or her demonstrated acceptance of the offer when negotiations began. - The courts determine an offeror's intent based upon what the offeror's belief was at the time negotiations began.

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

An offer must include all but which of the following elements? -The offer must contain reasonably definite and certain terms. -The offer must be communicated to the offeree. -The offer must always be in writing. -The offer must demonstrate a serious intent by the offeror to be bound by the offer.

The offer must always be in writing.

All but which of the following demonstrate an acceptance by the offeree? -The offeree makes a new offer to the offeror to continue negotiations which ultimately leads to a contract. - The offeree demonstrates acceptance by completing an action the offer requires. - The offeree performs an act the offeror requests. - The offeree makes a return promise to the offeror.

The offeree makes a new offer to the offeror to continue negotiations which ultimately leads to a contract.

Which of the following is not generally considered a material term in an offer? - parties -price subject matter -the time the offer is to remain open

the time

A revocation is effective ________

when offeree recieves it