Deck 9: The Agreement

Question 1

A record or signature is denied legal effect or enforceability solely because it is in electronic form.

Answer 1

False

Question 2

Boris offers to sell either of his bikes, red or blue, to Saks for $1,000 on a Monday, to which Saks agrees. On the second Monday of the month, Saks asks Boris to sell his red bike for $1,000. It is a valid contract according to the UCC.

Answer 2

True

Question 3

In interpreting an agreement, courts generally apply a subjective standard.

Answer 3

False

Question 4

If, after a reasonable time, an offeree does not fulfill the terms of an offer, then it may be revoked.

Question 5

Dixie writes an e-mail to sell her bike for $1,000, but forgets to send it. Coincidentally, her classmate's mother wants to buy a bike for her kids and sends an e-mail to Dixie saying that she wants to buy her bike for $1,000. This is a valid offer.

Question 6

If a faxed document is sent but for some reason not received or not noticed, the emerging law is that the mailbox rule does not apply.

Question 7

According to the mirror image rule, a response to an offer can change its terms.

Question 8

According to Lefkowitz v. Great Minneapolis Surplus Store, under proper circumstances, an advertised statement can be construed as an offer.

Question 9

Which of the following is an example of a valid contract according to common law?

A) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday for $1,000, to which Sam agrees. On Saturday Bob goes to race dirt bikes on his red bike; due to a minor collision, the red bike's brakes stop working. On Monday, however, he offers the blue bike to Sam, who was out of town for the weekend.
B) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday, to which Sam agrees. On Monday, Bob sells his blue bike to Sam and asks for $1,500 in return.
C) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday, to which Sam agrees to pay $1,000 or $1,200 for the blue bike. On Monday, Bob asks Sam to pay $1,200 for his red bike.
D) Bob offers to sell either of his bikes, red or blue, for $1.000 to Sam the coming Monday, to which Sam agrees. Bob also asks Sam, as part of the deal, not to buy a bike during the weekend. Sam goes out of town for the weekend and buys a bike for $700. Bob asks Sam to pay him $1,000 for his bike on Monday.
E) Bob offers to sell either of his bikes, red or blue, to Sam for $1,000 the first Monday of the month, to which Sam agrees. On the second Monday of the month, Sam asks Bob to sell both his bikes for $1,000.

Question 10

Which of the following is an example of a contract offer?

A) A notice on a Web site offering to sell a mobile phone for $400.
B) British Petroleum asking companies to quote for its new venture.
C) Greg puts up a notice on a tree in his locality offering a reward of $100 for anyone who finds his missing cat.
D) On January 1, a company declares a bonus of $1,000 for all its employees who complete a year in the company since the date of announcement.
E) Tixie writes an e-mail to sell her bike for $1,000, but forgets to send it. Coincidentally, her classmate's mother wants to buy a bike for her kids and sends an e-mail to Tixie saying that she wants to buy her bike for $1,000.

Question 11

Acceptances are considered effective when mailed, regardless of the method used to transmit the offer.

Question 12

For unilateral contracts without notification, the offeror may, after a reasonable time, treat the offer as having lapsed.

Question 13

As per the mailbox rule, an acceptance is effective when it is dropped in the mail by the offeree.

Question 14

Which of the following is an example of a valid offer?

A) Tim advertises in a newspaper to sell his car for $4,000.
B) A tire manufacturer sends his quotation to a car manufacturer for a particular make of tire at $50.
C) Walmart advertises that all canned juices in its stores would be available at a discount of 50 percent on the printed price.
D) A laptop showroom advertises that every laptop purchased would be eligible for a free backpack, subject to availability.
E) A backyard sale at Castle estate advertising the sale of all items in an auction for up to 50 percent discount.

Question 15

According to the UCC, an offer must remain open for the time period stated or, if no time period is given, at least for a reasonable period of time, which may not exceed five months.

Question 16

The estate of a deceased person cannot be held liable on a contract made by the person before death.

Question 17

A promise cannot be made to one person who is not expected to do anything in return.

Question 18

Which of the following is a valid contract under UCC?

A) Alex offers to sell his house to Billy for $100,000 and gives a written promise. On the 29th day, Billy calls up Alex to accept the offer.
B) Alex offers to sell his house to Billy for $100,000 and gives a written promise to keep the offer open for 10 days. Billy calls up Alex on the fifth day accepting the offer and on the 10th day goes to buy the car. Alex asks for $155,000.
C) Alex offers to sell his house to Billy for $100,000 and gives a written promise to keep the offer open for 10 days. Two days later, Alex sends a telegram to Billy to revoke the offer. On the morning of the fifth day Billy receives Alex's telegram. Billy calls up Alex the same afternoon accepting the offer.
D) Alex offers to sell his house to Billy for $100,000 and gives a written promise to keep the offer open for 10 days. Billy offers to pay him $1,000 extra for keeping the offer open for 20 days. Two days later, Billy calls Alex to revoke the offer. Alex calls up Billy on the ninth day to accept the offer.
E) Alex offers to sell his house to Billy for $100,000 and gives a written promise to keep the offer open for 10 days. On the third day Billy calls up Alex, declining the offer. On the tenth day, Alex asks Billy to come and buy the car at the agreed price.

Question 19

If an acceptance that requests a change or an addition to the offer does not require the offeror's assent, then the acceptance is valid.

Question 20

Which of the following is a valid contract according to common law?

A) Jon offers to sell his car to Jack for $50,000 and promises to keep the offer open for 10 days. Jack offers to pay him $1,000 extra for keeping the offer open for 20 days. Two days later, Jon calls Jack to revoke the offer but Jack misses his call. Jack calls up Jon on the ninth day to accept the offer.
B) Jon telephones Jack to tell him about selling his car to Jack for $50,000. He promises to keep the offer open for 10 days. Two days later, Jon telephones Jack to revoke the offer. Jack telephones Jon on the ninth day to accept the offer.
C) Jon offers to sell his car to Jack for $50,000 and promises to keep the offer open for 10 days. Jack calls up Jon on the fifth day accepting the offer and on the tenth day goes to buy the car. Jon asks for $55,000.
D) Jon offers to sell his car to Jack for $50,000 and promises to keep the offer open for 10 days. Two days later, Jon sends a telegram to Jack to revoke the offer. On the morning of the fifth day Jack receives Jon's telegram. Jack calls up Jon the same afternoon accepting the offer.
E) Jon offers to sell his car to Jack for $50,000 and promises to keep the offer open for 10 days. On the third day Jack calls up Jon, declining the offer. On the tenth day, Jon asks Jack to come and buy the car at the agreed price.

Question 21

Karen offers to sell Gary 100 stocks that are fluctuating rapidly hour by hour. Gary receives the offer an hour before the market closes. Which of the following would be a valid contract?

A) Gary accepts by fax two hours after the market has opened the next morning and after learning that the stock has jumped up significantly. He agrees to buy the stocks at the current price.
B) Gary accepts to buy the stocks at the pre-fixed price.
C) Gary accepts to buy the stocks an hour before midnight.
D) Gary accepts on the spot. Karen's office catches fire and the stock papers all burn up.
E) Gary accepts immediately. That very night, the stock market makes it illegal to buy quantities less than 350 shares.

Question 22

According to Section 69 of The Restatement, which of the following is NOT an example of a valid acceptance?

A) A babysitter is supposed to just ensure that the kids finish their assignment and sleep on time. One day she saw that there were no snacks for the kids and informs the kid's parents who say nothing. She orders pizza amounting to $250. She asks the kid's parents to pay her the $250 that she paid for the pizza.
B) Tom's colleague, Tim, left his bike at Tom's house on a rainy night. Tom sends a letter to Tim stating that he would sell the bike for $300 if he does not hear from Tim.
C) Kim has an apple farm in the countryside and her friend Tony has a shop selling apples in the city. Kim sends a basket of apples to Tony to be sold in the city. Tony does not respond to Kim about the offer. After three months, Kim calls up Tony and asks him to pay for the basket of apples that was sent to him.
D) Kelly tells his carpenter to clean the place after work, else half of his fees would be deducted. After a week, the place was still not cleaned by the carpenter. Kelly paid the carpenter half of what had been agreed upon at the beginning of the work.
E) Mini offers to sell her books to Tina on March 3 for $50 by e-mail, which did not reach her as Tina had left town on the evening of March 2 to go to university. Mini called and asked Tina to give her the money for the books.

Question 23

What was the court's decision in Lucy v. Zehmer?

A) The claim made by Lucy was inconsistent with his attempt to testify in great detail as to what was said and what was done.
B) The writing signed by the defendants did not constitute a binding contract of sale between the parties
C) At no time prior to the execution of the contract had Zehmer indicated to Lucy by word or act that he was not in earnest about selling the farm.
D) The $5 offered by Lucy to Zehmer to seal the bargain for selling the plot for $50,000 was inadequate.
E) The mental assent of the parties is not requisite for the formation of a contract.

Question 24

In what situations are acceptances effective?

Question 25

What was the court's ruling in Lefkowitz v. Great Minneapolis Surplus Store?

A) The offer was modified by a "house rule" to effect that only women were qualified to receive bargains advertised.
B) The value of the articles was speculative and uncertain.
C) The advertisement offering the merchandise for sale was a unilateral offer, which can be withdrawn without notice.
D) The advertiser has no right, after acceptance, to impose arbitrary conditions contained in the published offer.
E) Advertisements are not construed as offers.

Question 26

Under common law, which of the following is an example of a valid contract following the "mirror image" rule?

A) Tibb offers to sell his bike to Rony for $10,000 and gives a written promise to keep the offer open for 10 days. Rony responds on the 11th day saying that he will pay $15,000 for the bike.
B) Tibb offers to sell his bike to Rony for $10,000 and gives a written promise to keep the offer open for 10 days. Rony responds on the second day saying that he will pay $5,000 for the bike.
C) Tibb offers to sell his bike to Rony for $10,000 and gives a written promise to keep the offer open for 10 days. Rony responds on the second day and accepts the offer along with the condition that Tibb gets the bike serviced.
D) Tibb offers to sell his bike to Rony for $10,000 and gives a written promise to keep the offer open for 10 days. Rony responds on the second day accepts the offer with the proviso that Tibb fill the fuel tank.
E) Tibb offers to sell his bike to Rony for $10,000 and gives a written promise to keep the offer open for 10 days. Rony responds on the second day saying that he is ready to accept the offer and that he would also like a helmet.

Question 27

According to the Uniform Electronic Transactions Act UETA), which of the following is true?

A) A record or signature may be denied legal effect solely because it is in electronic form.
B) A contract may not be denied enforceability solely because an electronic record was used in its formation.
C) If a law requires a record to be in writing, an electronic record cannot satisfy the law.
D) If a law requires a signature, an electronic signature cannot satisfy the law.
E) The UETA addresses all the problems with electronic contracting.

Question 28

Section 2-3061) of the UCC states that _____.

A) if parties intend to enter into a binding agreement, that agreement would be valid in law, despite missing terms, if there is any reasonably certain basis for granting a remedy.
B) even though one or more terms are left open, a contract for sale does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy.
C) a party which agrees to purchase the seller's entire output of goods cannot offer a quantity that is unreasonably disproportionate to a stated estimate.
D) under proper circumstances, an advertised statement can be constructed as an offer.
E) the critical question is what the parties said or did, not what they thought they said or did, or not what impression they thought they were making.

Question 29

According to law, what are the ways by which an offer can expire?

Question 30

Which of the following is an example of a valid contract according to the UCC?

A) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday for $1,000, to which Sam agrees. On Saturday Bob goes to race dirt bikes on his red bike; due to a minor collision, the red bike's brakes stop working. He does not get time to get the brakes repaired. On Monday, however, he offers the red bike to Sam, who was out of town for the weekend.
B) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday for $1,000, to which Sam agrees. On Monday, Bob sells his blue bike to Sam and asks for $1,500 in return.
C) Bob offers to sell either of his bikes, red or blue, to Sam the coming Monday. Sam agrees to buy the blue bike and to pay $1,000 or $1,200. On Monday, Bob asks Sam to pay $1,200 for his red bike.
D) Bob offers to sell either of his bikes, red or blue, for $1,000 to Sam the coming Monday, to which Sam agrees. Bob also asks Sam, as part of the deal, not to buy a bike during the weekend, again agreed to by Sam. Sam goes out of town for the weekend and buys a bike for $700. Bob asks Sam to pay him $1,000 for his bike on Monday.
E) Bob offers to sell either of his bikes, red or blue, to Sam for $1,000 on a Monday, to which Sam agrees. On the second Monday of the month, Sam asks Bob to sell his blue bike for $1,000.

Question 31

The mailbox rule:

A) has a lineage tracing back less than 50 years to the English courts.
B) states that the solution is not the same as the rationale for the rule.
C) states that the acceptance is not effective until received by the offeror.
D) places the burden on the offeror.
E) states that the offeree alone has the power to fix the moment of effectiveness.

Question 32

An) _____ is a UCC option made in writing and signed by a merchant, promising to keep an offer open and that needs no consideration.

A) firm offer
B) option contract
C) mirror image rule
D) mailbox rule
E) definiteness