Question 1

Mr.Blue and Mr.Green are in negotiations for a regular delivery of newspapers to Mr.Blue's business.Mr.Blue did not formally announce his acceptance to the offer.But when Mr.Green sent a shipment of newspapers as had been agree,Mr.Blue accepted the shipment and paid for them.According to the UCC Mr.Blue and Mr.Green have an enforceable contract.

Accepted Answer

UCC section 2-204(2)states that if the parties are acting as though they have a contract by delivering or accepting goods this will be enough to create a binding contract.

Question 2

If a term is left open in a sale of goods contract,that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

Accepted Answer

If a term is left open in a contract that meets these two standards,that open term or "gap" can be "filled" by inserting a presumption found in the Code's "gap-filling" rules.

Question 3

Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite.

Accepted Answer

Offers that fail to provide a specific time for acceptance are valid for a reasonable period of time.

Question 4

An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract.

Accepted Answer

Such an advertisement is considered an offer for unilateral contract which can be enforced only if the offeree performs the stated act.

Question 5

In order to meet the requirements to form a contract the parties must have a future intent to agree and form a contract.

Accepted Answer

For a proposal to be considered an offer,the offeror must indicate present intent to contract.Present intent means the intent to enter the contract upon acceptance.

Question 6

Sellers at a public auction are treated as makers of an invitation to offer.

Accepted Answer

Sellers at auctions are generally treated as making an invitation to offer.Those who bid on goods are,therefore treated as making offers.

Question 7

The three requirements for a valid offer are: present intent to contract,definiteness,and communication to the offeree.

Accepted Answer

A valid offer needs to have all three elements (intent,definiteness,and being communicated to offeree).

Question 8

Courts look at parties' outward manifestations of intent as a requirement to enforce a contract.This is called the subjective standard of intent.

Accepted Answer

Courts look at the objective standard of intent when they try to find outward manifestations of intent.

Question 9

A revocation is effective at the time it is dispatched by the offeror.

Accepted Answer

The general rule of revocation is that it is effective only when it is actually received by the offeree.

Question 10

Generally speaking,the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

Accepted Answer

The UCC rules for the definiteness of an offer are more liberal than the traditional common law rules.

Question 11

Generally speaking,advertisements are considered to be offers.

Accepted Answer

Advertisements are not treated as offers,but rather invitations to offer or negotiate.

Question 12

The offeror's death automatically terminates an offer,but the offeree's death does not.

Accepted Answer

The death of either party in a deal automatically terminates an offer.

Question 13

All terms of contracts,even "fine-print" terms of standard form contracts,are always part of the parties' deal and binding on them,because parties have an obligation to read their contracts and are assumed to have done so.

Accepted Answer

A fine print version of the contract is not legally binding because contracts tend to be lengthy and time-consuming and often are not properly read.

Question 14

Strictly speaking,a contract has nothing to do with the personal intent of the parties.

Accepted Answer

According to the objective theory of contracts,intent is judged by objective standard.

Question 15

Mr.Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel.Mr.Blue submits a bid for his work associated with the project.Mr.Green placed an offer which Mr.Blue accepted with his bid.

Accepted Answer

Advertisements for bids are generally treated as invitations to offer while those individuals that submit bids are offerors to contracts that may be accepted or not.

Question 16

The offeror is said to be the "master of the offer." This means that offerors have the power to determine the terms and conditions under which they are bound to a contract.

Accepted Answer

The offeror is considered the "master of the offer" and has the power to determine the terms and conditions of the offer as well as the power to revoke it prior to its acceptance.

Question 17

An offer is the first step in the contract formation process.

Accepted Answer

An offer is the critically important first step in the contract formation process.

Question 18

A firm's offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Accepted Answer

A firm's offer for the sale of goods needs to be made by an offeror who is a merchant,be contained in a signed writing,and give assurance that the offer will be kept open.

Question 19

The UCC often creates contractual liability in situations where no contract would have resulted at common law.

Accepted Answer

The UCC,with its increased emphasis on furthering people's justifiable expectations and its encouragement of a hands-on approach by the courts,often creates contractual liability in situations where no contract would have resulted at common law.

Question 20

Bob offers to sell his bike to Sue for $100,and promises to keep his offer open for five days.Sue thanks him and leaves.At this point,Bob still has the power to revoke his offer.

Accepted Answer

The general rule for revocations states that the offeror has the power to revoke an offer even if there is a stipulated time period.

Quiz 10: The Agreement: Offer