Q&A Hero

Q: Why does the Code provide for "accommodation" in cases of acceptance by shipment of nonconforming goods?

Q: What is the "mailbox rule"? What risk does it create for the offeror?

Q: The UCC states that a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time is effective on dispatch. What does the UCC mean by "reasonable" here?

Q: Why is an offeree's silence regarding a contract not considered to be an acceptance of it?

Q: The original offeree is one who: A. first makes the offer and determines its terms and conditions. B. has the legal power to accept an offer and create a contract. C. hears of the contract indirectly and has an intent to accept. D. first accepts the additional terms presented by the offeree.

Q: Arthur offered to sell his house to Mike for $50,000. Even before Mike responded to the offer, Jack learnt of the offer and called up Arthur to accept the offer. Jack's action represents a(n) _____. A. offer B. promise C. notification D. acceptance

Q: What section of the UCC states that an order to a manufacturer requesting shipment of goods may be accepted by a prompt shipment of the goods? A. 2-206 B. 9-301 C. 1-105 D. 2-345

Q: Why is the mirror image rule not strictly applied to modern commercial transactions?

Q: An offer which is unclear about the form of acceptance that is necessary to create a contract, is called a(n) _____ offer. A. ambiguous B. reasonable C. implied D. counter

Q: An ambiguous offer may be accepted in any manner that is _____ in light of the circumstances. A. stipulated B. authorized C. recognizable D. reasonable

Q: The shipment of nonconforming goods intended as an accommodation to the buyer is a(n) _____. A. ambiguous offer B. prompt shipment C. counteroffer D. inquiry regarding terms

Q: April Roberts ordered hundred 19-inch color television sets from Carl Soans and requested for a prompt shipment of the goods. Carl promptly shipped fifty 21-inch color television sets and fifty 19-inch color television sets without informing April that the shipment of nonconforming television sets was an accommodation. Which of the following is true? A. There is no acceptance because Carl's shipment materially differed from the terms of the offer. B. There is an acceptance and April is bound to pay the reasonable value of the fifty 21-inch television sets she did not ask for. C. There is an acceptance but Carl has breached the contract by shipping nonconforming television sets. D. There is a new offer that Carl has made by sending the nonconforming goods which April can accept or reject.

Q: Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without communicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green? A. There is no contract because Mr. Green did not expressly accept the offer B. There is a contract because Mr. Green accepted by implied action C. There is no contract because the goods are treated as gifts to Mr. Green D. There is no contract because the Secretary of State was not notified

Q: Which of the following is true regarding silence as an acceptance? A. Contract law explicitly recognizes silence as constituting acceptance. B. An offeree's silence is considered acceptance when he/she indicates so. C. An offeror can impose on the offeree a duty to respond to the offer. D. The Code explicitly recognizes silence as constituting acceptance.

Q: Sue Sandon and Joe Rhine have concluded their agreement in all substantial matters of their contract for goods offer like price, quantity, and mode of delivery but the formal written agreement has not been signed yet. Is there a binding contract at present? A. Yes, because an oral contract should suffice. B. Yes, because a contract is formed at the time the agreement is concluded. C. No, because the minor terms also need to be taken care of. D. No, because the agreement is not yet signed and thus, legally unenforceable.

Q: A bilateral contract is accepted by when the offeree: A. performs the requested act. B. makes the promise requested by the offer. C. accepts the offer in silence without prior indication. D. makes additional inquiries regarding the terms.

Q: Mr. Green creates a unilateral contract with nephew Paul. Mr. Green promises to buy Paul a laptop if he gets accepted to college. In order for Paul to accept this contract what must he do? A. Get accepted into college B. Send a certified letter to Mr. Green agreeing to the terms of the contract C. Immediately call and orally accept the terms of the contract with Mr. Green D. Notify the Secretary of State's office that he accepts Mr. Green's contract

Q: Under the common law, an offer for a unilateral contract: A. is accepted by full performance of the act requested by the offer. B. is accepted either by an appropriate act or an appropriate promise. C. is accepted by whatever means are reasonable under the circumstances. D. is accepted by making the promise requested by the offer.

Q: How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance? A. By providing additional terms according to the Code's gap-filling provisions B. By holding that the offeree's acceptance has curtailed the power of revocation C. By holding that the offeree's performance has made it a bilateral contract D. By making material changes in the terms of the original contract

Q: Which of the following is true regarding the approach taken by the UCC toward the proper means of acceptance and the implications of using it or not using it? A. If the offer authorizes a certain means of acceptance, the offeree must use that means or else there is no acceptance. B. If the offer authorizes a certain means of acceptance and the offeree uses another means, a contract is formed, but never before the offeror receives the acceptance. C. Where the offer stipulates a certain means of acceptance, any reasonable means of acceptance will create a contract. D. The UCC does not change the traditional rule that, where the offer stipulates a certain means of acceptance, the offeree must use that means or there is no contract.

Q: What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror? A. It is valid but unenforceable. B. It is invalid but enforceable. C. It is effective when received. D. It leads to an immediate revocation.

Q: Which of the following considers a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time to be effective on dispatch? A. Traditional contract laws B. UCC C. CISG D. Restatement (Second)

Q: Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true? A. The acceptance is effective upon dispatch. B. The acceptance is effective when it is received. C. The offer is invalid because it fails to stipulate the means of acceptance. D. The acceptance would be effective upon dispatch even if the means of acceptance is unreasonable.

Q: In general, the mailbox rule is beneficial to: A. the offeror. B. the offeree. C. the courts. D. third-party beneficiaries.

Q: What can an offeror do to minimize the risk posed by the mailbox rule? A. Include separate additional terms B. Include a receipt stipulation in the contract C. Select only known parties as original offerees D. Revoke the offer before acceptance

Q: Under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless: A. both the offeror and offeree are merchants. B. the offer proposes a sale of real estate. C. the acceptance is not in the authorized mode of communication. D. the acceptance is lost or never reaches the offeror.

Q: On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract? A. No, because Trista's purported acceptance was delayed. B. Yes, because Trista dispatched the telegram prior to 2:00 p.m. C. No, because Trista's use of a telegram was not stipulated in the offer. D. Yes, unless Charlie is not home to receive the telegram.

Q: Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter" and this detail is an example of a _____. A. contract B. notification C. rejection D. stipulation

Q: Ian Kendler makes Brian Hyson an offer for a plot of land. In the offer, Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service. Which of the following is true? Assume that the Restatement (Second) of Contracts does not apply. A. There is no acceptance and no contract. B. A contract was formed at the time Hyson dispatched the letter. C. A contract was formed at the time Kendler received the letter. D. The acceptance is invalid because the contract does not relate to sale of goods.

Q: What is the term for "a manifestation of assent to the terms made by the offeree"? A. The Offer B. The Acceptance C. The Consideration D. Revocation

Q: Which party to contract negotiations is the master of the offer and can specify what behavior is necessary to constitute a valid acceptance? A. The Offeror B. The Offeree C. The Secretary of State D. The court

Q: Which of the following describes a stipulation? A. An offeror's right to determine the manner of acceptance B. An offeree's right to determine who to contract with C. The court's right to provide gap-fillers in a contract D. Additional terms in a contract in order to make it binding

Q: When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as _____. A. documentation B. authentication C. stipulation D. notification

Q: Ian Sanders offered to sell his car to Beth Jones for $5,000 with Beth's agreement. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) _____. A. inquiry regarding terms B. rejection of the offer C. conditional acceptance of the offer D. additional term

Q: Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse of each form, there were minor terms that conflicted with each other. What is impact of these minor differences in terms in the forms on the contract? A. There is no contract here because there is a discrepancy between the standard forms used by the two companies. B. There is no contract here because there is no "meeting of the minds." C. A contract does exist and is favorable to the third party beneficiaries who can take advantage of the situation. D. A contract does exist and it includes the terms agreed upon plus gap-fillers from the UCC.

Q: What does the term grumbling acceptance' mean? A. Accepting the offer by maintaining one's silence B. Making material changes to a contract when accepting it C. Inquiring about the terms of the offer without rejecting it D. Accepting an offer while complaining about the terms

Q: Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract? Assume that Bill did not make its acceptance conditional on Debbie's assent to any additional or different terms. A. Only when Debbie and Bill are merchants. B. When Bill's form is a definite and seasonable expression of acceptance. C. When the conduct of one party recognizes the existence of a contract. D. When the offer expressly limits acceptance to its own terms.

Q: Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants? A. There is a grumbling acceptance by both parties. B. The contract is regarding the sale of goods. C. The offer expressly limits acceptance to its own terms. D. There additional terms would not materially alter the contract.

Q: According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _____ and the appropriate gap-filling presumptions of the Code. A. an inquiry regarding terms B. notifications to prevent breach of conduct C. counteroffers from either party D. terms on which the parties' writings agree

Q: Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract? A. No, because the offer made by Milner Developers was ambiguous. B. No, because Wright's letter was a counteroffer to the original offer. C. Yes, because Milner Developers did receive a response from Wright. D. Yes, because Wright's silent signaled his acceptance of the offer.

Q: In a contract for the sale of land, how close must the terms of the acceptance be to the terms of the offer, in order to form a contract? A. They must be identical or almost identical. B. They must agree on the major terms of the transaction. C. They must indicate a definite intent to form a contract. D. They must be identical only with regard to the price quoted.

Q: Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer? A. A material change to an original offer is disfavored by traditional contract law. B. It changes the degree of the offeror's interest to contract. C. Such an action implies a rejection of the offer by the offeree. D. It puts the offeree in a dominant position which is contrary to traditional contract laws.

Q: Which of the following would indicate a rejection under the mirror image rule? A. Inquiry regarding terms B. Material changes to offer C. Grumbling acceptance D. Present intent to accept

Q: Mr. White contracts with Mr. Green for 100 black coffee mugs for a party. Mr. White decides he needs the mugs faster than the time allotted in the contract, and asks for a rush shipment. Mr. Green notifies Mr. White that he will ship 100 coffee mugs but that the only ones available are red. A court will find that the shipment of red mugs under the UCC is not a breach of the original agreement.

Q: Which of the following actions constitutes the acceptance of an offer? A. Offeree made material alterations to the terms of the offer B. Offeree intended to enter the contract only if requisite changes were made C. Offeree reflected assent to the terms of the offer in the requisite manner D. Offeree suggested addition of new terms that were earlier not addressed in the offer

Q: In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror. A. present intent to contract B. inquiry regarding terms C. subjective standard D. silent acceptance

Q: Which of the following actions is considered to reflect a counteroffer? A. A grumbling acceptance B. An inquiry regarding terms C. A demand for additional terms D. A silent acceptance

Q: You wish to download free software from the Internet. The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another web page. The "download now" page has a button that initiates the download process. You click that button without going to the licensing agreement page and find that it contains an arbitration provision. Are you bound by this provision? A. Yes, because the "please review" statement in the "download now" page informed you of the licensing agreement. B. Yes, because when you clicked the button to initiate the download process you agreed to the provisions in the licensing agreement. C. No, because you did not perform an action that indicated your assent to the licensing agreement. D. No, because laws relating to Internet privacy consider silence to be an acceptance of the offer.

Q: Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract? A. Common Law B. Constitutional Law C. Natural Law D. Theocratic Law

Q: When Carol Whittaker makes an offer to a contractor Jacob Phelps directing him to inform her of his acceptance through registered letter mail, she is making an ambiguous offer.

Q: When an offer is unclear about the form of acceptance it requires, ideally it must not be accepted.

Q: The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.

Q: The only person with the legal power to accept an offer and create a contract is the original offeree.

Q: Mr. Blue enters into negotiation with Mr. Green to build a house. Both parties expected a written and signed purchase agreement. After agreeing on terms, Mr. Green is told by his subcontractors that some of their prices have gone up. Mr. Blue objects and indicates that there was a contract when the parties agreed to the original terms orally. A court will find that indeed no contract existed since the parties expected acceptance to be in written form.

Q: To accept an offer for a unilateral contract, the offeree must make the promise requested by the offer.

Q: To accept an offer for a bilateral contract, the offeree must perform the requested act.

Q: Mr. White sends his acceptance for a business contract to Mr. Green. But Mr. White put insufficient postage on the envelope. One day later Mr. Green revokes the offer through the mail. Mr. White upon receipt of the undelivered acceptance, Mr. White overnighted the acceptance letter to Mr. Green. The court will find if it applies the UCC rule that a valid acceptance occurred and subsequent contract is now created between Mr. White and Mr. Green.

Q: Transfer of title deeds is a function wherein silence signals acceptance of the offer.

Q: Kevin offered to mow the lawn for his Uncle Jordan's for $100. To his offer, Uncle Jordan replied by saying "I know you're taking advantage of me but I accept." Uncle Jordan has indeed accepted the offer made by Kevin.

Q: Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

Q: Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective upon dispatch even if it uses means other than those specified in the offer.

Q: If the offeree accepts the offeror's terms while complaining about them, it is called a grumbling acceptance.

Q: The UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.

Q: An acceptance is assent to a proposal by the offeree to the offeror.

Q: The intention to accept an offer must be a present intent to contract.

Q: E-Systems, Inc., a manufacturer of computer chips, offers to sell 1,000 chips to Swell Computers for $2,000 in a signed memo that states the offer is good for one year. Four months later, E-Systems revokes the offer, having never received an acceptance from Swell. After receiving the revocation, Swell wants to accept E-Systems's offer. What is the result?

Q: When determining the presence of the intent to accept, a subjective standard is used.

Q: The intent to accept is objectively demonstrated by words or conduct or a combination of the two.

Q: In recent times, the mirror-image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

Q: Ashley says to Bob: "I promise to pay you $20 if you will shovel my sidewalk." Bob begins to shovel, and soon he has completed 90% of the job. Then Ashley tells him: "Thanks, but I revoke." Bob then finishes the job in about ten minutes. Can Bob recover against Ashley in contract? Why or why not? In any event, what other theory might Bob use? Assume that an offer for a unilateral contract is accepted by full performance of the requested act.

Q: Adam offers to sell Bill his house. The offer is complete and certain as to all material terms. The offer also contains a promise that for a price of $100, Adam will keep the offer open for 30 days. Bill never pays Adam the $100. Ten days after making the offer, Adam telephones Bill to revoke it. Three days after that, Bill accepts. Is there a contract here? Why or why not?

Q: The Toy Company offers to sell Wal-Mart 10,000 dolls at a certain price. The offer, which is signed by TTC's President, is complete and certain as to all material terms. The offer also states that it will remain open for four months, but does not require any consideration in support of this promise. TTC revokes the offer 100 days after it was made. Is this revocation effective? Would your answer change if TTC revoked 80 days after the offer was made?

Q: What legal effect does death or insanity of the offeror have on the offer? A. It terminates the offer automatically. B. It terminates only the last contract that has been formed with that offeror. C. It has no legal effect unless and until the offeree is notified of the death of the offeror. D. It makes the offer voidable.

Q: A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country; and therefore, the offer was terminated by the embargo. This is an example of: A. promissory estoppel. B. destruction of subject matter. C. intervening illegality. D. revocation.

Q: When negotiations occur through email or mail, there is usually a time limit put on what? A. The time the offeree has to accept the offer B. The time the offeror has to register the contract with the state C. The time the offeror has to register the contract with the federal government D. The time to have a judge approve the contract

Q: Gail offers to sell Belinda 1000 boxes of nails, but forgets to state the price. All other material terms are present, however. Belinda accepts, but later wants to back out of the deal, arguing that the offer is indefinite. Is there a contract here? Why or why not? Assume that at the time of the deal the parties intended to make a contract. Assume also that there was an established market price for the nails in question here.

Q: When is the revocation of an offer effective? A. When received by the offeror B. When received by the offeree C. When sent by the offeree D. When sent by the offeror

Q: A newspaper advertisement made to the general public: A. usually is an offer. B. can be revoked by using a similar newspaper advertisement. C. can only be rejected by using a similar newspaper advertisement. D. is a firm offer that cannot be revoked.

Q: On May 1, Ida makes a written offer to Miranda for the sale of Ida's car. On May 2, Ida mails Miranda a letter revoking the offer. On May 3, Ida telephones Miranda to tell him that he is revoking the offer. On May 4, Miranda learns that Ida has sold the car to Chris. On May 5, Ida's letter finally gets to Miranda. Ida's offer terminated on: A. May 2. B. May 3. C. May 4. D. May 5.

Q: Which of the following is an exception to the general rule that rejections terminate offers? A. Unilateral contracts B. Bilateral contracts C. Firm offers D. Option contracts