Q&A Hero

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: 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: 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: 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: 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: 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: 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: 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: 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

Q: The outer limit on a firm offer is: A. 1 month. B. 3 months. C. 6 months. D. 1 year.

Q: How can an offeree impliedly reject an offer? A. By indicating that he will not accept it B. By asking for more time to think C. By making a counteroffer D. By writing his nonacceptance

Q: Why does a rejection by the offeree terminate his power to accept the offer? A. It indicates his inability to perform the contract. B. It indicates that the offeree is uninterested. C. It allows the offeror to approach a different offeree. D. It indicates a lack of intent making any future contract illegal.

Q: A firm offer differs from an option in that, a firm offer: A. is a separate contract by itself. B. is irrevocable for a certain period of time. C. does not require a consideration in exchange for the offer. D. is not covered under the UCC.

Q: Which of the following conditions characterizes a firm offer regarding the sale of goods? A. It must be verbally communicated. B. It can be revoked by the offeror prior to acceptance. C. It must be made in the presence of a government official. D. It must be made by an offeror who is a merchant.

Q: In which of the following circumstances are offerors free to revoke their offers? A. In case of common law rule on revocation. B. In case of unilateral contracts. C. In case of the availability of an option. D. In case of a promissory estoppel.

Q: How does the presence of facts that constitute promissory estoppel make a difference in the law of offers and revocations? A. It makes an option enforceable, even without consideration. B. It does away with the requirement that rejections and revocations be communicated. C. It makes an offer automatically revocable at any time. D. It does away with the requirement that offers be definite.

Q: Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation? A. Yes, because Sara is the master of the offer here. B. Yes, because Sara can revoke the offer any time she feels like. C. No, because this is a valid contract that cannot be revoked. D. No, because this is now a bilateral contract.

Q: Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian's car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate? A. After 5 days, as per the "5 day rule." B. After 10 days, as per the "10 day rule." C. After a "reasonable" period of time. D. When either Ian or Raymond terminates it.

Q: Which of the following is true of a revocation? A. The power of revocation of an offer lies with the offeree. B. Death or insanity cannot be reasons for revocation. C. Promissory estoppels are used to prevent revocations. D. Offers that fail to state a specified time period are considered invalid.

Q: A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration. A. offer B. option C. bid D. advertisement

Q: Which of the following helps to prevent offerors from revoking their offers prior to acceptance when the offeree relies on it being kept open? A. Option B. Promissory estoppel C. Unilateral contracts D. Firm offer

Q: Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise. A. An offer for the sale of land. B. An offer to purchase stock on a stock exchange. C. An offer that says that it will stay open for one week. D. An offer with a valid five-day option attached to it.

Q: An online agreement that presents contract terms and conditions but does not require readers to click to indicate agreement is called a: A. clickwrap agreement. B. shrinkwrap agreement. C. browsewrap agreement. D. minimum contracts agreement.

Q: Ms. White lost her puppy. She advertises a reward of $50 for the return of her puppy. What is the contractual nature of Ms. White's advertisement? A. An offer for a unilateral contract B. An invitation for an offer C. An invitation for a gift D. An acceptance on a bilateral promise

Q: Offers that fail to provide a specific time for acceptance are: A. considered to be illegal. B. are valid for a reasonable period for time. C. are valid but unenforceable. D. can be used to penalize the offeror.

Q: When can the offeror effectively revoke his/her offer? A. Only after an effective acceptance. B. Only before an effective acceptance. C. Only before payment for goods or services has been made. D. Only before the parties have completed their obligations under the contract.

Q: Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____. A. offers B. invitations to negotiate C. invitations to offer D. obligations

Q: When an auction is advertised as being _________, the seller is treated as having made an offer to sell the goods to the highest bidder. A. without intent B. without reserve C. without price D. without offer

Q: Which of the following characterizes an auction "without reserve"? A. Bidders must necessarily be merchants B. Sellers must necessarily be merchants C. Goods cannot be withdrawn after a call for bids D. Buyers are treated as having made an offer to sell

Q: Which of the following is true regarding bids? A. They are considered to be unilateral contracts. B. Promissory estoppels can be used to prevent withdrawal of bids. C. Bids for governmental contracts are covered under contract principles. D. Those submitting a bid are called offerees.

Q: Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? A. Austen should not rely on Bronte's offer to do the electrical work. B. Austen has accepted Bronte's offer, thereby forming a contract. C. Austen is not bound by Bronte's bid until he informs her of his intent to accept. D. Bronte has accepted Austen's offer by submitting the lowest bid.

Q: For a proposal to be considered a contractual offer then the offeror must have what type of intent? A. Present intent to contract B. Future intent to contract C. No intent to contract D. Past intent to contract

Q: Advertisements for the sale of goods at specific prices are considered to be: A. bids. B. unenforceable contracts. C. invitations to offer. D. unilateral contracts.

Q: Which of the following characterizes the Code's standards of definiteness? A. It sees courts as contract enforcers. B. It requires a high degree of definiteness in contracts. C. It can create contractual liabilities. D. It cannot fill in gaps in contracts.

Q: Which of the following is true of a sales contract under the UCC? A. The courts cannot fill any "gaps" in the contracts. B. The court needs to find if the parties intended a contract. C. An intent to contract exists even if the parties were unable to reach an agreement. D. All terms of contract need to be clear for the court to decide the case.

Q: Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract? A. Yes, because there is valid consideration. B. Yes, because a third party has communicated the terms of Sue's offer to John and that John had accepted the same. C. No, because the offeror had not communicated the terms of the offer to the offeree. D. No, because the contract is still not signed by both the parties.

Q: Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true? A. Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. B. There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. C. Kyle and Tara have a contract for the purchase of Kyle's car. D. Maggie's letter is a valid acceptance of Kyle's offer.

Q: Which of the following characterizes definiteness standards under the common law? A. Courts are contract enforcers. B. Contracts need to contain all the terms. C. Courts should be able to provide "gap fillers" in contracts. D. Courts can take a "hands-on" approach to contracts.

Q: The term for the person who makes an offer as part of a contract formation is called? A. Offeree B. Offeror C. Leasor D. Incorporator

Q: Ashley says to Ford, "I'd like to buy your house," and Ford responds, "You've got a deal." This exchange lacks _____. A. partners B. communication C. object D. specificity