Question 1

The Johnsons decided to sell their summer cabin on Beech Lake.They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin.The flyer described the location of the property,the size of the lot,and the price.If one of the recipients responds by sending a letter accepting,an agreement:

Accepted Answer

The flyer was sent out as an invitation to make an offer, not as an offer itself. Therefore, the Johnsons are not bound to sell their cabin to any particular person who responds to the flyer with an acceptance.

Question 2

In seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

Accepted Answer

This statement is true. In contract law, the meeting of the minds refers to the mutual agreement and understanding between the parties about the essential terms of the contract. The courts will objectively analyze the language and actions of the parties to determine whether there was a meeting of the minds.

Question 3

If both parties believe they have a binding contract,this belief settles any later questions about the validity and enforceability of the agreement.

Accepted Answer

Belief alone does not determine the validity or enforceability of a contract; it must meet legal requirements such as offer, acceptance, consideration, and legality.

Question 4

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and medium.

Accepted Answer

This concept is known as the "mailbox rule," which assumes that acceptance occurs at the moment the offeree sends the acceptance, as long as the method and medium are reasonable. If the offer specifies a particular method or medium, the offeree must adhere to those guidelines.

Question 5

Which of the following are generally considered to be legal offers?

Accepted Answer

The answer of Which of the following are generally considered...

Question 6

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale.You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

Accepted Answer

According to the statement, there have been no special announcements made by the auctioneer about the sale of the antique sofa. Therefore, the seller can still withdraw the item before the sale is officially closed by a proper announcement or the fall of the hammer.

Question 7

Revocation is the withdrawal of an offer by the offeror.

Accepted Answer

Revocation is the withdrawal of an offer by the offeror, hence the statement is true.

Question 8

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Accepted Answer

Courts have generally upheld software clickwrap and shrinkwrap agreements that limit the manufacturer's liability to a refund of the purchase price, even if the software damages a consumer's hardware.

Question 9

According to the UCC,one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

Accepted Answer

This is true according to the UCC, which allows for open terms in sales contracts as long as the parties intended to make a contract and there is a sufficiently definite basis for the court to determine the open terms.

Question 10

When Olga asks Sven if he wishes to sell his Harley motorcycle,he replies that he would not sell it "for less than $2,000." Olga replies,"I accept," and hands him $2,000.A contract exists.

Accepted Answer

The answer of When Olga asks Sven if he wishes...

Question 11

Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.

Accepted Answer

The contract is not necessarily unenforceable due to vagueness. It may be unenforceable because it lacks essential terms, such as price, quantity, or delivery date. However, if these essential terms can be reasonably implied or inferred from the contract or trade practices, the contract may still be enforceable.

Question 12

Vick Valve Company makes valves for plumbing fixtures.At the beginning of the year,it sends out a price list addressing each one,"To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list.Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

Accepted Answer

The price list sent out by Vick Valve Company is considered an invitation to treat, not an offer. This means it invites customers to make an offer to buy at the listed prices, which Vick Valve can then accept or reject.

Question 13

April put an advertisement in the newspaper advertising the sale of her computer for $500.Simultaneously,six people responded to the ad by mail with formal written acceptances.April is bound on all six contracts to sell her computer for $500.

Accepted Answer

April's advertisement in the newspaper is considered an invitation to treat, not an offer. Therefore, the responses are offers to buy, which April can accept or reject. She cannot be bound to all six contracts simultaneously as she only has one computer to sell.

Question 14

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50.In fact,the store had only two,out-of-style suits for sale at this price.Their other wool suits started at $175.This constitutes bad faith in its advertising,so consumers may have protection through state statutes.

Accepted Answer

Nunnsky's Retail's advertising of wool suits for $50, when in fact they only had two out-of-style suits at that price and all others starting at $175, constitutes bad faith in advertising. Therefore, consumers may have protection through state statutes.

Question 15

On Monday,Mick puts an offer in the mail to Sheri to sell his guitar for $50.Monday night when jamming with his buddies,he decides he will really miss his old guitar and has second thoughts about selling it.Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale.The revocation is effective on Tuesday morning.

Accepted Answer

The revocation is effective when Sheri receives it, not when Mick sends it. Until Sheri receives the revocation, she can still accept the offer assuming she does so without knowledge of the revocation.

Question 16

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby.Prince Charming came in last,much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that horse to the first person who hands me $100 bucks!" John has:

Accepted Answer

The answer of John owns a thoroughbred horse named Prince...

Question 17

The intent of the offeror to extend an offer to the offeree is generally determined by reference to:

Accepted Answer

The intent of the offeror is determined by reference to the words and conduct of the offeror. It is not based on the beliefs, subjective intention or assumptions of the offeror. It is important to analyze the objective manifestations of the offeror's intent, such as what was said or written and how the offeror acted.

Question 18

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack.If the place of delivery and time for shipping the goods are not specified,the UCC provides:

Accepted Answer

The answer of Regency Construction placed an order for two...

Question 19

A letter of intent summarizes progress made during business negotiations,but more importantly,it creates a binding contract.

Accepted Answer

A letter of intent is a document outlining the basic terms and conditions of a proposed agreement or business deal. It is not necessarily a binding contract, although it may contain provisions that are legally enforceable. It is often used as a preliminary step in negotiations and provides a framework for more detailed discussions. However, a letter of intent is not a substitute for a formal contract and should not be relied upon as a legally binding agreement.

Question 20

Nella offers to sell her crop of strawberries,which have just been picked,to Morgan's Market.Since she does not specify a time limit for acceptance,Morgan's can accept the offer the following week,as long as Nella has not revoked it.

Accepted Answer

The answer of Nella offers to sell her crop of...

Quiz 10: Agreement