offer - acceptance-consideration

Question 1

List the requirements of an offer.

Answer 1

1. Serious intent;
2. Definite Terms;
3. Communication of Offer.

Question 2

When are preliminary negotiations considered offers?

Answer 2

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

Question 3

When are advertisements considered offers?

Answer 3

Advertisements are generally not offers unless they only invite acceptance.

Question 4

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

Answer 4

Acceptance must be unequivocal and communicated to the offeror.

Question 5

When is a revocation by the offeror effective?

Answer 5

When offeree knows of or receives revocation.

Question 6

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

Answer 6

1. Lapse of time;
2. Death or insanity of either party (unless offer is irrevocable);
3. Destruction of the specific subject matter of the contract;
4. Intervening illegality

Question 7

List the elements of a contract.

Answer 7

Offer, Acceptance, Consideration, Capacity of the parties, Legality, Writing (when required).

Question 8

When is the revocation of a public offer effective?

Answer 8

Effective if made in the same medium as the offer.

Question 9

List the three types of irrevocable offers.

Answer 9

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

Question 10

What happens under UCC if there are additional terms in acceptance and the parties are nonmerchants?

Answer 10

There is a contract, but without the additional terms.

Question 11

Describe the general rule of revocation.

Answer 11

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

Question 12

Describe an expressly authorized or stipulated means of communication.

Answer 12

A means of communicating acceptance that is expressly stipulated in the offer.

Question 13

What happens under Common Law if there are additional terms in an acceptance?

Answer 13

The acceptance is a counteroffer and a rejection.

Question 14

How is serious intent (objective intent) measured?

Answer 14

Measured by a reasonable person’s interpretation of the circumstances.

Question 15

Describe the requirements of an offer.

Answer 15

Objective intent to contract;

Common law: subject matter, price, payment terms, time for performance, etc.;

Uniform Commercial Code (UCC): subject matter and quantity if more than one;

UCC will supply the remaining terms if not in the offer.

Question 16

List the ways an offer can be terminated by the act of the parties to the offer.

Answer 16

1. Revocation;
2. Rejection;
3. Counteroffer.

Question 17

When is an acceptance of an offer effective?

Answer 17

If sent by authorized medium, effective when delivered to the medium;

If sent by unauthorized medium, effective when received by offeror, provided that the offer is still open.

Question 18

Describe the mirror-image rule regarding acceptance of an offer.

Answer 18

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

Question 19

What happens under UCC law if there are additional terms in acceptance and the parties are merchants?

Answer 19

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

Question 20

When does the acceptance of an unilateral offer occur?

Answer 20

Takes place upon completion of the act required by the offeror.