Question 1

Wes, who is an art collector, offered to buy a print from Le Monde Gallery.Le Monde balked at the price, sending Wes a letter of rejection.That day it discovered that the print was not as highly valued as originally thought.Le Monde immediately telephoned Wes to accept his offer.Is there a contract?

Accepted Answer

The answer of Wes, who is an art collector, offered...

Question 2

In the Osprey L.L.C.v.Kelly-Moore Paint Co.,Inc.case, the Supreme Court of Oklahoma held that:

Accepted Answer

The Supreme Court of Oklahoma held that a faxed delivery of the written notice to renew the commercial lease was sufficient to exercise the renewal option of the lease.

Question 3

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

Accepted Answer

A requirements contract is an agreement in which the seller agrees to supply all of the buyer's needs for a particular good, or set of goods, for a specified period of time. This type of contract is commonly used in industries such as agriculture, manufacturing, and retail, where a buyer may need a regular supply of a particular raw material or finished product.

Question 4

Nadira mails an offer to Cade on March 15.Cade receives the offer on March 16.Nadira mails a revocation of the offer on March 17.Cade mails a letter of acceptance on March 18.Cade receives the revocation on March 19.Nadira receives the letter of acceptance on March 20.Was a contract formed?

Accepted Answer

A contract was formed on March 18 when Cade mailed the letter of acceptance. According to the mailbox rule, an acceptance becomes effective when it is dispatched, not when it is received by the offeror. Since Cade mailed his acceptance before receiving the revocation, the acceptance is valid and a contract was formed on March 18.

Question 5

The Rogers family has always wanted to buy the beautiful house at the top of the hill.The owners of the house, the Thompsons, decided to sell and called Mr.Rogers.Before he could get back in touch with Mr.Thompson, Mr.Rogers suffered a heart attack and died.Mr.Rogers' adult daughter, to whom the Thompsons had not spoken, still wants the house.She may:

Accepted Answer

CThe offer to Mr. Rogers was terminated upon his death, meaning his daughter cannot accept the original offer as it stands (A). However, contract offers can generally be assignable unless the offer or the nature of the contract is highly personal, meaning if the offer were assignable and had not been terminated by Mr. Rogers' death, the daughter could potentially accept it on behalf of her father's estate or have it assigned to her (C).

Question 6

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal.The court's decision:

Accepted Answer

If the offer becomes illegal due to a change in law or a court decision, the offer is automatically terminated. This is known as the doctrine of supervening illegality. Therefore, the state supreme court's decision in this scenario would automatically terminate Elvis's offer to Fred.

Question 7

Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Will's offer illegal.The new statute:

Accepted Answer

The new statute that makes Will's offer illegal automatically terminates the offer because a contract cannot be legally enforced if it involves performing an illegal act.

Question 8

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.In this case, Elmer:

Accepted Answer

Elmer can revoke his offer at any time before Fred accepts it because there is no consideration to keep it open. There was no binding contract formed because there was no consideration, and no option contract or promissory estoppel applies.

Question 9

To be effective, an offer must:

Accepted Answer

An effective offer must be sufficiently definite and certain, be communicated to the offeree, and manifest an intent to enter into a contract. All these elements are essential for an offer to be considered valid in the context of contract law.

Question 10

Alexio read SmartHome's ad in the local newspaper advertising a home communications system for $489.Alexio rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $849.Alexio gave the salesperson $489 plus sales tax and demanded the system.

Accepted Answer

Advertisements are generally considered invitations to negotiate rather than firm offers, meaning the store is not legally bound to sell the item at the misprinted price.

Question 11

Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order.Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance.What is the status of the interaction between Action and Brace?

Accepted Answer

The initial order and acceptance by Brace Company created a valid contract for the goods under the UCC. However, Brace's additional payment terms become part of the contract unless Action objects within a reasonable period of time.

Question 12

If there is no time specified for the acceptance of an offer, when does the offer terminate?

Accepted Answer

When there is no specified time for acceptance of an offer, it is considered open for a reasonable period of time, which depends on the circumstances of the offer. Therefore, option D is the correct answer.

Question 13

The definition of commercial reasonableness as used in contract law includes:

Accepted Answer

Commercial reasonableness in contract law typically refers to actions or practices that are customary and standard in a particular type of transaction. This means that what is considered reasonable is often determined by what is commonly done in similar situations within the industry, rather than requiring innovative or unprecedented solutions.

Question 14

An ad in a newspaper or a circular describing goods and stating prices would generally be considered:

Accepted Answer

An ad in a newspaper or circular describing goods and stating prices is generally considered an invitation to buyers to make an offer to buy goods. It is not a firm offer if made by a merchant, and it is not an offer irrespective of who made the offer.

Question 15

Robinson Wiring Co.submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex.Robinson knows Turner is relying on Robinson's bid.Robinson:

Accepted Answer

Robinson Wiring Co. cannot revoke its bid under the doctrine of promissory estoppel because Turner Construction is relying on the bid. Promissory estoppel prevents one party from revoking an offer if the other party has relied on it to their detriment. Therefore, Robinson Wiring Co. is legally bound to its bid once Turner Construction has relied on it.

Question 16

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.In this case:

Accepted Answer

Maxine's act of selling the video camera to Cindy before the expiration of the two-week period effectively serves as a revocation of her offer to Tom, as she can no longer fulfill the terms of the offer she made to him.

Question 17

When does acceptance of an offer to enter into a unilateral contract generally occur?

Accepted Answer

In a unilateral contract, acceptance occurs upon full performance by the offeree. This means that the offeree must complete the task or requirement stated in the offer for acceptance to occur. Notice of intent to accept or commencement of performance by the offeree does not constitute acceptance in a unilateral contract.

Question 18

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts, the courts will complete the contract in the court's best judgment.

Accepted Answer

Courts generally do not create or complete contracts for the parties; instead, they interpret and enforce the terms that the parties have expressly agreed upon. If a contract lacks definite terms, it may be deemed unenforceable due to vagueness or indefiniteness.

Question 19

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than:

Accepted Answer

The UCC (Uniform Commercial Code) specifies that a merchant's firm offer remains open for the time stated in the offer, but in no event may such a period exceed three months.

Question 20

The UCC provides missing contract terms in which of the following instances?

Accepted Answer

The UCC provides missing contract terms for both the failure to specify the price and the failure to specify the place of delivery. The UCC provides a default rule for the price, which is a reasonable price at the time of delivery, and for the place of delivery, which is the seller's place of business.

Quiz 10: Mutual Assent