Question 1

Under the common law, the __________ must be the mirror image of the __________.

Accepted Answer

Under common law, for a contract to be considered valid, the acceptance must exactly match the offer it is responding to, often referred to as the "mirror image rule." This means the terms of the acceptance must be the same as the terms of the offer.

Question 2

Which of the following would NOT be a merchant under Article 2 of the UCC?

Accepted Answer

A person who inherits speedboats and sells them is not considered a merchant under Article 2 of the UCC because they are not regularly engaged in the business of selling goods of that kind.

Question 3

If Anna Laura, in return for the payment of $200 to her by Catherine, gives Catherine an option to buy Achraji, a prime Arabian mare, at any time within the next 14 days at a price of $50,000, Anna Laura's offer to Catherine is:

Accepted Answer

This is an irrevocable option contract because Catherine has paid Anna Laura $200 for the right to decide within 14 days whether to buy Achraji at the agreed price, making the offer binding and irrevocable for that period.

Question 4

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

Accepted Answer

Lefkowitz v. Great Minneapolis Surplus Store, Inc. established that an advertisement could be considered an offer if it contained definite terms and a promise of performance in return for a requested act.

Question 5

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Accepted Answer

Once a bid is submitted, it becomes a binding contract between the bidder and the offeree. According to the statutory irrevocability of bids, bids cannot be revoked once submitted. Jeb is therefore obligated to honor his bid, even if he made an error in his calculations. He cannot refuse to put in window casings, as these were part of the bid specifications, and he cannot revoke his bid.

Question 6

The way parties usually show mutual assent is by:

Accepted Answer

Both an offer by words or conduct and an acceptance by words or conduct are necessary to show mutual assent. This is known as the "meeting of the minds" and is a fundamental principle of contract law. Option B and D are not as inclusive as they only mention words as a means of showing mutual assent, while option C is too vague in describing what specific acts are being exchanged.

Question 7

Serafina's Boutique places an ad in the Sunday paper for finely tailored, top-of-the-line designer suits for $10.00, which is a misprint.Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job.Serafina apologizes for the misprint.Alice has just finished a class in contract law and insists that the store sell her five suits for $50.Alice threatens to sue Serafina for breach of contract.

Accepted Answer

The ad in the newspaper is considered a solicitation of offers, not an offer to sell. This means that Serafina is not obligated to sell the suits for $10 and has the right to refuse the sale or correct the misprint. Alice cannot successfully sue for breach of contract because no enforceable contract was ever formed.

Question 8

Carlissa hears about a reward being offered by the local sheriff's office for information leading to the arrest and conviction of a local rapist.She supplies the requested information and the suspect is then arrested and convicted.In this case:

Accepted Answer

The offer made by the sheriff's office was a unilateral contract made to the general public, which Carlissa accepted by providing the requested information that led to the arrest and conviction of the suspect. Therefore, she is entitled to collect the reward offered.

Question 9

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?

Accepted Answer

The answer of Assume an offeree mails a rejection to...

Question 10

Jack has been in the business of selling carpeting for 20 years.He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 square yards of carpet at $20 per square yard.Bob agrees and sends back the following letter confirming the deal:
Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 square yards of Saxony "heather blue" carpeting at the rate of $20 per square yard.We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.
Very truly yours,
Bob
Which of the following is true?

Accepted Answer

Bob's letter is an acceptance of Jack's original offer for 100 square yards of carpeting. The mention of additional yardage at the same rate for one year is an attempt to modify the original offer, but since this modification was not agreed upon by Jack, it does not become part of the contract. The contract is thus only for the 100 square yards of carpeting at the agreed price.

Question 11

Which is not a revocable offer?

Accepted Answer

The answer of Which is not a revocable offer?
...

Question 12

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool.Marilyn called the advertiser and began swimming.She has reached lap number 460; she feels great and is sure she can make it all the way.The advertiser:

Accepted Answer

The advertiser must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps. As per the contract, Marilyn is in the process of completing the 500 laps and has fulfilled a significant portion of the offer. The advertiser must allow her to complete the remaining laps without interference or pay damages for breaching the contract.

Question 13

A __________ is the refusal to accept an offer.

Accepted Answer

A rejection is a clear and unequivocal refusal to accept an offer, whereas a revocation refers to the withdrawal of an offer by the offeror before it has been accepted, and a counteroffer is a new offer made in response to the original offer. "Statutory irrevocability" is not relevant to this question.

Question 14

Destruction of the subject matter has what effect on the offer?

Accepted Answer

Destruction of the subject matter results in the termination of the offer because it makes the fulfillment of the contract impossible.

Question 15

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

Accepted Answer

All of these examples fit the definition of a merchant under the Uniform Commercial Code (UCC). The UCC generally defines a merchant as someone who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction. Arthur, as an authorized dealer, Brian, with a sales operation for his furniture, and Clarence, with a store for used lawn mowers, all deal in goods of the kind and present themselves as having knowledge or skills relevant to those goods.

Question 16

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Accepted Answer

Bob's response is a counteroffer because he has not accepted the original terms proposed by Arnold. Instead, he has proposed new terms for the partnership agreement. This means there is no contract based on Arnold's original offer.

Question 17

Don offers to sell his diamond ring to Emily.If Diane overhears the offer and says, "I accept the offer":

Accepted Answer

Don's offer was made specifically to Emily, so Diane cannot accept the offer. Only the intended offeree, Emily, can accept the offer.

Question 18

Lyle offers to sell his house to Dennis for $95,000.Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:

Accepted Answer

Dennis's response is a counteroffer because he is proposing a new term (painting the second floor) before he agrees to pay the $95,000, which changes the original offer made by Lyle.

Question 19

Brooks offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays Brooks $100.Which statement describes the payment of $100?

Accepted Answer

The payment of $100 creates an option contract. An option contract is a contract where the offeror (Brooks) promises to keep an offer open for a specified period of time in exchange for some form of consideration (the $100 payment). Jennifer now has the option to accept or reject the offer within the one-month period specified.

Question 20

A conditional acceptance:

Accepted Answer

A conditional acceptance is considered a counteroffer because it effectively rejects the original offer and proposes a new set of terms for the agreement.

Quiz 10: Mutual Assent

Under the common law, the must be the mirror image of the .