Negotiation

Question 1

A counteroffer ____ the original offer & substitutes a new offer in its place

Answer 1

nullifies

A counteroffer negates the initial offer and presents new terms.

Question 2

A contract is created when three events occur. What are they?

Answer 2

• offer is made
• offer is accepted
• acceptance is communicated back to offeror

These three steps are essential for the formation of a legally binding contract.

Question 3

Ways an offer is terminated (WILD CARD). What does W stand for?

Answer 3

withdrawal by the offeror

Withdrawal must occur before acceptance for it to be valid.

Question 4

Ways an offer is terminated (WILD CARD). What does I stand for?

Answer 4

Insanity

If the offeror is deemed legally insane, the offer is void.

Question 5

Ways an offer is terminated (WILD CARD). What does L stand for?

Answer 5

lapse of time

An offer may expire after a specified time or a reasonable time if none is specified.

Question 6

Ways an offer is terminated (WILD CARD). What does D stand for?

Answer 6

death

The death of the offeror or offeree can terminate the offer.

Question 7

Ways an offer is terminated (WILD CARD). What does C stand for?

Answer 7

counteroffer

A counteroffer replaces the original offer and terminates it.

Question 8

Ways an offer is terminated (WILD CARD). What does A stand for?

Answer 8

acceptance

Acceptance of the offer by the offeree finalizes the agreement.

Question 9

Ways an offer is terminated (WILD CARD). What does R stand for?

Answer 9

rejection

If the offeree rejects the offer, it is no longer valid.

Question 10

Ways an offer is terminated (WILD CARD). What does D stand for?

Answer 10

destruction of the property

If the subject matter of the offer is destroyed, the offer is terminated.