Flash Cards 1

Question 1

When are advertisements considered offers?

Answer 1

Generally not offers unless they only invite acceptance

Question 2

How is serious intent (objective intent) measured?

Answer 2

by a reasonable person’s interpretation of the circumstances.

Question 3

List the requirements of an offer

Answer 3

1. ) Serious Intent
2. ) Definite Terms
3. )Communication of offer

Question 4

List the ways an offer can be terminated

Answer 4

1. Revocation
2. Rejection
3. Counteroffer

Question 5

When are preliminary negotiations considered offers?

Answer 5

Preliminary negotiations are generally not offers unless such negotiations includes price lists, solicitation of bids, and auctions with reserve.

Question 6

List the three types of irrevocable offers.

Answer 6

1. Options
2. Sales of goods firm offers
3. Offers irrevocable by estoppel

Question 7

Describe the general rule of revocation

Answer 7

An offer can be revoked at any time before acceptance unless offer is irrevocable.

Question 8

List the requirements of a firm offer for sales of goods

Answer 8

1. Offeror is a merchant
2. Offerror using a signed writing
3. Assures offer will remain open for a stated period of time (without consideration not to exceed 3 months, regardless)

Question 9

When is the revocation of a public offer effective?

Answer 9

Effective if made in the same medium as the offer

Question 10

When is revocation by the offeror effective?

Answer 10

When offerree knows of or receives revocation

Question 11

Define “Option Contract”

Answer 11

An option contract is a distinct contract in which the offerree gives consideration to keep offer open

Question 12

When does the acceptance of an unilateral offer occur?

Answer 12

upon completion of the act required by the offeror

Question 13

List the ways in which an offer can be terminated by operation of law

Answer 13

1. Lapse of time
2. Death or insanity (unless irrevocable)
3. Destruction of specific subject matter of contract.
4. Intervening illegalty

Question 14

What conditions must exist for the acceptance of a bilateral offer to take place?

Answer 14

Acceptance must be unequivocal and communicated to offeror.

Question 15

When is acceptance of an offer effective?

Answer 15

If sent by authorized medium, effective when delivered to medium.

If sent by unauthorized medium, effective when received by offeror, provided offer still open

Question 16

Can silence be considered a form of acceptance to an offer?

Answer 16

Generally not acceptance unless the offerree’s actions indicate an attempt to accept or offerree has duty to reject.

Question 17

Describe mirror image rule regarding acceptance of offer.

Answer 17

Must be absolute, unequivocal, and unconditional. In common law, if acceptance is not a mirror image of offer’s terms, it is a rejection and counter offer

Question 18

Requirements of offer

Answer 18

Objective intent to contract

Common law: Subject matter, price, payment terms, time for performance, etc

UCC: subject matter and quantity if more than one

UCC will supply remaining terms if not in offer

Question 19

List elements of contract

Answer 19

Offer, acceptance, consideration, capacity of parties, legality, writing (when required)

Question 20

What happens under common law if there are additional terms in an acceptance?

Answer 20

It is a counter offer and a rejection

Question 21

What happens under UCC if their are additional terms in acceptance and parties are non merchants?

Answer 21

There is a contract but with additional terms

Question 22

What happens under UCC if their are additional terms in acceptance and parties are merchants?

Answer 22

There is a contract with additional terms unless those terms are material, are objected to, or if offer was specifically limited to its terms