Question 1

What does "present intent to contract" mean?

Accepted Answer

The "intent to contract" simply implies the intent to enter the contract upon acceptance.

Question 2

Which of the following characterizes an auction "without reserve"?

Accepted Answer

When an auction is advertised as being "without reserve," the seller is treated as having made an offer to sell the goods to the highest bidder and the goods cannot be withdrawn after a call for bids has been made,unless,no bids are made within a reasonable time.

Question 3

Ashburn had a big ranch in Georgia.One day Pamela stated,"I'd like to buy your sheep for $50.They're so cute!" to which Ashburn immediately replied,"Sure.That's a deal!" This cannot be enforced as a contract because of lack of:

Accepted Answer

The lack of definiteness and specificity indicate a lack of intent in this case,and suggest that the parties may negotiate further on the deal.

Question 4

Which of the following is the first step in the contract formation process?

Accepted Answer

The first critically important step in the contract formation process is the offer in definite terms.

Question 5

Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price.Such pens typically sell for $1 each.Carl orally accepts.Immediately thereafter,Abby tries to back out of the deal.At this point in time,which of the following is most likely to be true?

Accepted Answer

The most important requirement in determining whether a contract exists,the intent to contract,is present here even though the contract does not state the price terms.The court would consider this to be a valid contract.

Question 6

To distinguish an offer,courts first look at:

Accepted Answer

The first thing that courts look at when they try to distinguish an offer is the "present intent to contract".

Question 7

Which of the following characterizes the Code's standards of definiteness?

Accepted Answer

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

Question 8

Ms.Pink offers to landscape Mr.Green's yard for $100.Mr.Green is planning to say yes but before he has a chance to communicate with Ms.Pink he receives a text message from Ms.Pink indicating she has rescinded her offer due to her being too busy.Ms.Pink has effectively revoked her offer.

Accepted Answer

The general common law rule on revocations is that offerors may revoke their offers at any time prior to acceptance.

Question 9

Advertisements for the sale of goods at specific prices are considered to be:

Accepted Answer

Advertisements for the sale of goods at specified prices are not considered to be offers,rather,invitations to offer or negotiate.

Question 10

Kyle sent Tara a letter offering to sell Tara his car.Tara left the letter on her desk,where her roommate,Maggie,saw it.After reading the letter,Maggie wrote to Kyle and stated that she (Maggie)wanted to accept Kyle's offer.Which of the following is true?

Accepted Answer

An offer needs to be communicated to the offeree.Since the offer was not made to Maggie,there is no contract in this case.

Question 11

When an auction is advertised as being _________,the seller is treated as having made an offer to sell the goods to the highest bidder.

Accepted Answer

When an auction is advertised as being "without reserve," the seller is treated as having made an offer to sell the goods to the highest bidder and the goods cannot be withdrawn after a call for bids has been made unless no bids are made within a reasonable time.

Question 12

The term for the person who makes an offer as part of a contract formation is called?

Accepted Answer

The term for a person who makes an offer is the offeror.

Question 13

Which of the following is true of a sales contract under the UCC?

Accepted Answer

A sales contract is created if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

Question 14

Which of the following is true regarding bids?

Accepted Answer

Under certain circumstances,promissory estoppels can be used to prevent bidders from withdrawing their bids.

Question 15

Sue offers to buy a house from John and they were negotiating the price of the house.In the meantime,Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house.Delighted to hear this,John's wife tells him the good news.John immediately calls up Sue and accepts her offer.Is there a binding contract?

Accepted Answer

The offer must be communicated directly to the offeree.In this case,the offer was not made to John and hence,it is not valid.

Question 16

Ads that limit the power of acceptance to one offeree or a small number of offerees,are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____.

Accepted Answer

Some advertisements are considered to be offers.They limit the power of acceptance to one offeree or a small number of offerees,are highly specific about the nature and number of items offered for sale and what is requested in return,and they leave nothing further to be negotiated.

Question 17

For a proposal to be considered a contractual offer then the offeror must have what type of intent?

Accepted Answer

For a proposal to be considered an offer,the offeror must indicate present intent to contract.

Question 18

According to the classical contract law,courts are:

Accepted Answer

Classical contract law sees courts as contract enforcer,not contract makers.

Question 19

Ashley says to Ford,"I'd like to buy your house," and Ford responds,"You've got a deal." This exchange lacks _____.

Accepted Answer

A proposal that fails to state specifically what the offeror is willing to do and what he asks in return for his performance lacks specificity and is unlikely to be considered an offer.

Question 20

Which of the following characterizes definiteness standards under the common law?

Accepted Answer

Classical contract law took the position that courts are contract enforcers,not contract makers.The prospect of enforcing an agreement in which the parties had omitted terms or left terms open for later agreement was unthinkable.

Quiz 10: The Agreement: Offer