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Question 1

How can you revoke an offer by conduct?

Answer 1

Doing an act that prevents performance of the contract

Question 2

When is a revocation of an offer effective by conduct?

Answer 2

When the offeree learns about it from a reliable source

Question 3

What are three types of irrevocable offers?

Answer 3

• *** MOP **
• Merchant’s firm offer
• Option contracts
• Promissory estoppel

Question 4

If a revocation is applicable on an essay, what should you discuss?

Answer 4

• merchant’s firm offer
• option contracts
• promissory estoppel

Question 5

What are the three ways that an offer can be terminated by operation of law?

Answer 5

• death/incapacity/insanity
• supervening illegality
• destruction of subject matter

Question 6

If either party dies, what happens to an offer?

Answer 6

It dies too because there can’t be a contract without two parties in existence

Question 7

If one party becomes incapacitated or insane, what happens to an offer?

Answer 7

Mental capacity precludes mutual assent

Question 8

Why do option offers not terminate on death?

Answer 8

Because consideration has been paid to keep it open during the option period

Question 9

What is supervening illegality?

Answer 9

When a law gets passed that prevents the formation of a contract, this terminates an offer

Question 10

What is an example of supervening illegality?

Answer 10

If you’re selling Cuban cigars and a law is made to make that illegal after the offer is made, but before acceptance occurs, that terminates the offer

Question 11

If the subject matter is destroyed, what happens to the offer?

Answer 11

It can’t be performed

Question 12

How does an offer terminate by its own terms?

Answer 12

An offer expressly states how long it will be open for or on what event it will terminate

Question 13

If you get an offer in the mail long after the acceptance date, what period of time do you have?

Answer 13

Whatever period of time you would have had if the mail had been received when it should’ve been

Question 14

If an offer says it will stay open until Friday at 6 PM, when does the offer lapse?

Answer 14

Anytime after Friday at 6 PM

Question 15

If an offer doesn’t say how long it will be open for, when does it lapse?

Answer 15

After a reasonable time has passed

Question 16

If an offer is communicated via a delivery system like mail or fax, and the author gives you five days, where do you measure the date from?

Answer 16

From the date the offer was delivered, or if it was delivered abnormally, from when it should have been delivered

Question 17

If you send an offer by mail to sell your car for $5000, and it says the person has five days to accept, and mail usually takes two days, but in this case there was a problem that made it take five days, where do you measure the date from?

Answer 17

Date it should have been delivered if it had been delivered normally

Question 18

How can passage of time terminate an offer with regard to face to face offers and volatile prices?

Answer 18

• face-to-face offers terminate when a conversation ends

- offers to sell where prices are very volatile terminate quickly

Question 19

What are exceptions where offers do not terminate?

Answer 19

Irrevocable offers including:

• option contracts
• equitable option/detrimental reliance
• merchant’s firm offer
• sub-contractor’s bids

Question 20

How can you not revoke an option contract?

Answer 20

Nothing can terminate the offer until the day that is set

Question 21

Under the restatement, if there is an option contract that only has the recital of consideration, but none was actually paid, will the majority still enforce the option?

Answer 21

Yes, because the recital is treated as a promise to pay

Question 22

Does it matter how much the consideration was for an option contract?

Answer 22

No, It can just be one dollar

Question 23

What is an equitable option contract/detrimental reliance?

Answer 23

Implied option contract where offeree detrimentally, reasonably, and foreseeably relies on an offer, and the offer must stay open for reasonable time

Question 24

How is an equitable option contract the same as an option contract?

Answer 24

It is as if the person paid to keep the offer open and stays open for reasonable time, because of the detrimental reliance

Question 25

What is an example of an equitable option contract?

Answer 25

Subcontractor bids, because the general contractor relies on them in putting together his overall bid

Question 26

What is the UCC merchant’s firm offer?

Answer 26

When a merchant, or someone in business, puts a signed offer in writing stating that it will be held open for the stated period of time, or reasonable time when no time is stated, and no consideration is necessary

Question 27

How long is a Merchant’s Firm Offer considered irrevocable?

Answer 27

For the time stated, or if no time is stated, for a reasonable time, never to exceed three months without consideration

Question 28

Who does a Merchant’s Firm Offer apply to and what form must it be in?

Answer 28

It applies to anyone in business, and it must be in writing

Question 29

If consideration is paid for a Merchants Firm Offer, it becomes what?

Answer 29

An option contract

Question 30

Bids by subcontractors that are given to general contractors are considered what?

Answer 30

Temporarily irrevocable

Question 31

What is the one way that a unilateral offer can become irrevocable?

Answer 31

If performance has already begun

Question 32

What are some different situations that make a bilateral contract offer irrevocable?

Answer 32

• if the offeree gave CONSIDERATION
• the offer was in WRITING and included at least nominal consideration
• the offeree RELIED on the offer in a foreseeable way
• the offer was for the SALE OF GOODS and fell under the UCC

Question 33

If a revocation crosses paths with an acceptance, what do you do?

Answer 33

Figure out if the acceptance was sent in a timely manner and by an appropriate medium, and if it was, then:

• acceptance is effective on DISPATCH
• revocation is effective on RECEIPT

Question 34

What are the two positions for when revocation is effective for an offer?

Answer 34

• Majority: effective when received, regardless of whether the offeree actually knows about it or read it (counts if it is received by someone in your control)
• Minority: effective on dispatch