Question 1

What are the requirements of a valid offer? Explain. ​

Accepted Answer

A valid offer includes three requirements: 
1. It must be definite: A contract will not be enforced unless the court can ascertain what the parties agreed to. The offeror's intentions are ascertained from the offer, and these intentions cannot be ascertained unless the offer is definite.Terms usually required to be stated would include who the offeree is; the subject matter of the offer; and the price, quantity, and time of performance. 
2. It must appear to be seriously intended: One may make an offer in jest, banter, fear, or extreme anger, and if this fact is known or should be known by the offeree because of the surrounding circumstances, no contract is formed. There are times when the offer is not seriously intended, but the offeree has no way of knowing this. In that event, if the offer is accepted, a binding contract results. 
3. It must be communicated to the offeree: Until the offeror makes the offer known to the offeree, it is not certain that it is intended that the offeree may accept and thereby impose a binding contract. Accordingly, the offeree cannot accept an offer until the offeror has communicated the offer to the offeree.

Question 2

A toy merchant's display of a doll house in a store window for $100 constitutes:
A)a firm offer on the part of the merchant to sell the doll house.
B)a binding contract between the merchant and the public.
C)an invitation to the public to make an offer for the doll house.
D)A quasi-contract between the merchant and the public.

Accepted Answer

Displaying a doll house with a price tag in a store window is considered an invitation to treat (or invitation to bargain) in most legal systems. This means the merchant is inviting the public to make offers to buy the doll house, but is not making a firm offer to sell it at that price to anyone who wishes to buy. It does not create a binding contract or a firm offer, and there is no quasi-contractual relationship established simply by displaying the item with a price.

Question 3

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the .
A)claimant
B)offeror
C)acceptor
D)summoner

Accepted Answer

Ryan is the offeror because he is the one who initiates the proposal to sell his car, making him the party that presents the offer in the transaction.

Question 4

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect?
A)The offer will be rejected.
B)The offer will be revoked.
C)The inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked.
D)The inquiry will be considered a counteroffer.

Accepted Answer

An inquiry about the terms of an offer that differs from the original terms does not constitute a rejection of the offer. Instead, it is seen as seeking clarification or proposing a modification. If the offeror declines the inquiry, the original offer stands as long as it has not been revoked, allowing the offeree to accept the initial terms.

Question 5

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

Accepted Answer

Displaying a product at a particular price is generally considered an invitation to treat, not a binding offer. This means the merchant is not legally obligated to sell the product at the displayed price if it was a mistake or for any other reason.

Question 6

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances.

Accepted Answer

When an offer does not specify a particular manner of acceptance, it can be accepted in any manner that is reasonable under the circumstances, taking into account the nature of the transaction and customary practices.

Question 7

A firm offer can be best defined as:
A)an offer that cannot revoked for a reasonable time if no time is stated.
B)an offer that becomes invalid if payment is not made to the offeror.
C)a written document which has a seal in place of the merchant's signature.
D)a verbal promise to hold an offer open.

Accepted Answer

A firm offer occurs when an offeror promises to hold an offer open for a specified period of time or a reasonable time if no time is specified, during which it cannot be revoked. This is often applicable in the context of the Uniform Commercial Code (UCC) for merchants.

Question 8

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance.

Accepted Answer

In contract law, silence can constitute acceptance to an offer if it is reasonable to do so based on previous dealings or established practices between the parties, indicating that the offeree should notify the offeror of non-acceptance if they do not intend to accept the offer.

Question 9

Which of the following is true of a binding contract?
A)It allows an offer to be revoked once the contract is formed.
B)It is created when an offeree accepts an offer that has been properly communicated.
C)It is considered valid when the offer made is indefinite in nature.
D)It is created when the offeror clearly shows an intention to make an offer.

Accepted Answer

A binding contract is formed when an offeree accepts an offer that has been properly communicated, indicating mutual agreement and intent to be bound by the terms.

Question 10

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

Accepted Answer

The answer of When an offeree is not aware of...

Question 11

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?
A)Lily is still entitled accept the offer through legal action.
B)Lily can accept the offer within a period of ten days after Maya's death.
C)Lily must consider the offer automatically revoked and void.
D)Lily can claim that she was not aware of Maya's death and accept the offer.

Accepted Answer

When the offeror (Maya) dies before the acceptance of an offer, the offer is automatically revoked. The death of the offeror ends the possibility of forming a contract based on that offer, as the offer cannot be accepted after the offeror's death without prior specific arrangements.

Question 12

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated.

Accepted Answer

If the performance of the contract becomes illegal after an offer has been made, the offer is terminated because it is impossible to legally fulfill the terms of the contract.

Question 13

Which of the following is true of a valid offer? ​
A)It is indefinite in nature.
B)It is instituted by the offeree to the offeror.
C)It is seriously intended.
D)It can be accepted by anyone who hears about it.

Accepted Answer

A valid offer must be seriously intended, meaning it is made with the intention to be bound by it if accepted. Offers must be definite and communicated from the offeror to the offeree, and can only be accepted by the party to whom they are made.

Question 14

An offer expresses the willingness of the offeror to enter into a contractual agreement. ​

Accepted Answer

An offer is a clear statement of the terms on which the offeror is willing to enter into a contract, indicating a readiness to form a binding agreement upon acceptance.

Question 15

An offeree's response that rejects an offer by varying its terms is known as a(n).
A)counteroffer
B)option
C)circular
D)invitation

Accepted Answer

A counteroffer occurs when the offeree responds to an offer by proposing a different agreement, thereby rejecting the original offer.

Question 16

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

Accepted Answer

An offer made in jest, where there is no intention to be legally bound or to create a serious offer, is not considered a valid offer in contract law. The intention to create legal relations is a key element for a valid offer.

Question 17

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law.

Accepted Answer

Under common law, if the acceptance varies from the offer or qualifies it in any way, it is considered a counteroffer, which effectively rejects the original offer.

Question 18

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Accepted Answer

The "mailbox rule" generally states that an acceptance becomes effective once it is dispatched by the offeree, even if the offeror never receives it.

Question 19

Advertisements and catalogs are examples of general invitations.

Accepted Answer

Advertisements and catalogs are considered general invitations because they are directed towards the general public, inviting anyone interested to make an offer or inquiry, rather than constituting an offer in themselves.

Question 20

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n), and this type of offer cannot be revoked.
A)option
B)counteroffer
C)invitation to make an offer
D)definite offer

Accepted Answer

An option is a contract in which the offeror receives something of value in exchange for a promise to keep the offer open for a specified period, during which it cannot be revoked.

Quiz 6: Offer and Acceptance

What are the requirements of a valid offer? Explain.

A toy merchant's display of a doll house in a store window for $100 constitutes:

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the .

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect?

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances.

A firm offer can be best defined as:

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance.

Which of the following is true of a binding contract?

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated.

Which of the following is true of a valid offer?

An offer expresses the willingness of the offeror to enter into a contractual agreement.

An offeree's response that rejects an offer by varying its terms is known as a(n) .

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law.

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Advertisements and catalogs are examples of general invitations.

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n) , and this type of offer cannot be revoked.

Quiz 6: Offer and Acceptance

What are the requirements of a valid offer? Explain. ​

A toy merchant's display of a doll house in a store window for $100 constitutes:

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the .

An offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect?

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances.

A firm offer can be best defined as:

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance.

Which of the following is true of a binding contract?

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated.

Which of the following is true of a valid offer? ​

An offer expresses the willingness of the offeror to enter into a contractual agreement. ​

An offeree's response that rejects an offer by varying its terms is known as a(n) .

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law.

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Advertisements and catalogs are examples of general invitations.

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n) , and this type of offer cannot be revoked.

What are the requirements of a valid offer? Explain.

Which of the following is true of a valid offer?

An offer expresses the willingness of the offeror to enter into a contractual agreement.