Question 1

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by

Accepted Answer

The mailbox rule, also known as the postal rule, applies to acceptances made by regular mail. This rule states that an acceptance is effective when dispatched, as long as the communication is correctly addressed and the means of communication is expressly or impliedly authorized by the offeror. In this scenario, regular mail is the method that traditionally applies to the mailbox rule.

Question 2

Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer

Accepted Answer

The answer of Simone offers Thom a dozen piano lessons...

Question 3

Lou offers to service Millie's heating and air conditioning system for one year for $500. Under the mirror image rule, Millie's response will be considered an acceptance if the terms of the acceptance

Accepted Answer

The mirror image rule states that the acceptance must be a mirror image of the offer, meaning that the terms of the acceptance must exactly mirror those of the offer. In this case, Millie's acceptance must exactly mirror the terms of Lou's offer for it to be considered a valid acceptance. Any change in the terms, whether it's the items offered or the price, would be considered a counteroffer, which would terminate the original offer. Therefore, the best answer is A.

Question 4

Wally offers to repair and service a forklift for Valu Lumber Outlet, but Wally dies before Valu accepts. Most likely, Wally's death

Accepted Answer

Wally's offer to repair and service the forklift for Valu Lumber Outlet terminates upon his death. A person's offer cannot be accepted once they are deceased.

Question 5

Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are

Accepted Answer

Under the common law, an offer must include terms that are reasonably definite. This means that the terms must be clear and specific enough to allow a court to determine if a breach has occurred. If the terms are too vague or uncertain, there may not be a valid contract in place.

Question 6

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

Accepted Answer

In this situation, a reasonable period of time is implied for Nevin to hold the offer open. This means that Nevin is obligated to keep the offer open for a period of time that would be considered reasonable under the circumstances. Without specifying a time limit, it can be assumed that Nevin intended to allow Otis a reasonable amount of time to consider the offer before making a decision.

Question 7

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Accepted Answer

Under the mailbox rule, acceptance of an offer is generally considered effective when sent, as long as the acceptance is communicated through a medium expressly or impliedly authorized by the offeror. In this case, since Shelby made an offer and Relay's acceptance is via e-mail (a common and likely authorized method of communication), the acceptance is effective when sent.

Question 8

Rhonda asks Steve, "Do you want to buy me to repair your fishing net?" This is

Accepted Answer

The offer is not complete because the terms are not definite. Rhonda did not specify the price or conditions of the repair, which makes the offer incomplete. Therefore, it is not a valid offer.

Question 9

Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he

Accepted Answer

Miguel did not know of the reward when he returned the dog, so he cannot recover it. He did not have a prior agreement with Laredo in which he would receive a reward for returning the dog, and he did not perform the act of returning the dog in anticipation of a reward. Therefore, he cannot recover the reward even if it was advertised.

Question 10

Rico, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

By clicking on "I accept" after viewing certain terms, Rico is forming a contract with SmartPhoneApps.com that includes the terms. This is known as a clickwrap agreement, which is a type of contract that is formed by a user clicking "agree" or "accept" to the terms and conditions of a website or application. Therefore, the correct choice is B.

Question 11

Green River Gas Company offers to sell Far East Energy, Ltd., a certain quantity of liquefied natural gas. If Far East sends an acceptance via Green River's authorized mode of communication, it will be effective when it is

Accepted Answer

According to the mailbox rule in contract law, an acceptance is generally considered effective when it is sent, as long as it is dispatched through a mode of communication expressly or impliedly authorized by the offeror.

Question 12

Business Properties, Inc. (BPI), offers to sell a cold storage warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

Accepted Answer

Corporate Investments is making a counteroffer by asking BPI to hold the offer open for three days in exchange for $100. If BPI accepts this counteroffer, the offer becomes irrevocable for three days. It does not change the price term, nor does it extend the time term. Therefore, option B is the correct choice.

Question 13

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

Accepted Answer

The answer of Rafi offers a tour of Bay Harbor...

Question 14

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco's acceptance is complete

Accepted Answer

The answer of Gayla tells Franco that she will pay...

Question 15

Coffee Brokers, Inc., offers to buy Dining Company's coffee-roasting services for a certain price. Dining responds that the price is too low and thereby rejects the offer. The offer is

Accepted Answer

Once Dining rejects the offer, it is terminated and no longer valid.

Question 16

Jon says to Kris, "I would like to sell you my sports memorabilia collection." This is not an offer because it

Accepted Answer

This statement by Jon is not an offer but an invitation to negotiate because it lacks the definiteness and specificity required for an offer and merely expresses a willingness to discuss the possibility of a sale.

Question 17

On May 1 Ralph offers to cure and smoke Sam's pork. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer

Accepted Answer

Ralph's revocation of the offer became effective on May 5, the day Sam received the letter. In contract law, a revocation is generally effective when it is received by the offeree.

Question 18

Fix-It-Quik, Inc., offers Gina a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

Accepted Answer

Since no time for acceptance is specified in the offer, the offer will terminate after a reasonable period. This means that there is no specific time frame for acceptance and it will depend on the circumstances of the situation. It could be a few days or a few weeks, but ultimately it will be up to a judge to determine what is considered a reasonable amount of time in this case.

Question 19

Fabien offers to sell his Graphic Signs, LLC, business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

Accepted Answer

Hanna rejected Fabien's offer by stating that the price is too high, and then she made a counteroffer for $75,000. Therefore, she rejected the offer and made a counteroffer.

Question 20

Pastries, Inc., sends its catalogue to Rollo and includes a "personalized" letter inviting the purchase of any item at the advertised price. This is

Accepted Answer

Sending a catalogue with an invitation to purchase at an advertised price is not an offer, but rather an invitation to make an offer or to engage in negotiations. It is up to Rollo to make an offer and for Pastries, Inc. to accept or reject it. The personalized letter does not change the nature of the communication.

Quiz 12: Agreement in Traditional and E-Contracts