Question 1

A firm 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 offer for the sale of goods must be made by an offeror,who is a merchant,be contained in a signed writing,and give assurances that the offer will be held open.

Question 2

What does 'present intent to contract' mean?

Accepted Answer

Present intent to contract means having a current intention to enter into a contract once the other party accepts the offer. It does not refer to negotiating or setting conditions, and it does not imply the involvement of multiple partners.

Question 3

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 4

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

The UCC's gap-filling rules do provide presumptions to fill open terms in a sale of goods contract.

Question 5

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 means that the terms of the agreement are not clear or specific enough to be enforced as a contract. In this case, the price and quantity of sheep are not specified, making it too vague to be considered a binding agreement.

Question 6

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

Question 7

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 8

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

Accepted Answer

The first step in the contract formation process is an offer in definite terms. This means that one party makes a clear and specific proposal to another party, outlining the terms and conditions of the agreement. The other party can then either accept or reject the offer, or make a counteroffer. Once both parties reach mutual agreement on the terms and conditions, then they can sign the agreement and start implementing it. Selection of partners and drafting the agreement are important steps in the process, but they come after the offer and acceptance stage.

Question 9

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 typically the one who initiates and makes the offer, so they have the ability to control the terms of the offer. Once the offeree accepts the offer, a contract is formed and both parties are bound by the terms of the agreement.

Question 10

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

Accepted Answer

The exchange lacks specificity, as no details or terms of the deal were discussed or agreed upon.

Question 11

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's rules for definiteness of an offer are less strict than common law rules, which can make it easier to form a contract.

Question 12

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 13

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

Accepted Answer

The death of either party to an offer automatically terminates the offer without notice.

Question 14

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

Accepted Answer

A contract is a legally binding agreement between parties and is based on the objective intentions of the parties involved, rather than their personal feelings or beliefs. The terms and conditions of the contract are determined by the agreement reached between the parties and should be reflected in the written contract. Personal intent may be relevant in specific situations, such as where there is fraud or a mistake in entering into the contract, but in general, it is not a determining factor in contract law.

Question 15

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

Accepted Answer

The UCC has a broader definition of what constitutes a contract, which often leads to the creation of contractual liability in situations where no contract would have been formed under common law.

Question 16

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

Accepted Answer

An advertisement offering a reward for the return of lost property is generally treated as an offer for a unilateral contract because it is an open offer made to anyone who performs the specific act of returning the property. The person who returns the property is not bound by any obligation and can choose to accept or reject the offer. The reward serves as consideration for the performance of the act, and the offeror must fulfill their promise to pay the reward once the act is performed.

Question 17

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 time.

Question 18

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

Bob can still revoke his offer because Sue has not yet accepted it. Until Sue accepts the offer or the five days expire, Bob can change his mind and withdraw the offer.

Question 19

Generally speaking, advertisements are considered to be offers.

Accepted Answer

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

Question 20

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

Accepted Answer

These are the three primary requirements for a valid offer according to contract law.

Quiz 10: The Agreement: Offer