Agreement is normally evidenced by an offer and an acceptance. |
t |
The ____ must have a(n)____ intention to become bound by the offer. |
offeror serious |
The terms of the offer must be reasonably____ , or definite, so that the parties and the court can ____ the terms of the contract. |
certain ascertain |
The offer must be ____ to the offeree. |
communicated |
An effective offer requires that a reasonable price be related to market value. |
f |
Pascal’s new Mercedes won’t start one morning and he screams to his passenger, "For a thousand bucks, I’d get rid of this car." The passenger normally CANNOT buy the car for $1,000: |
b. because a reasonable person would know that a serious offer was not being made |
Olivia says to Jim, "I think I’ll sell my new digital camera for $100, because I’m never going to use it." This statement constitutes: |
c. a statement of future intent |
Which of the following statements could be a valid offer? |
e. an auction without reserve |
Jake chooses a pair of new running shoes from an online catalog. He is informed via e-mail that those shoes are sold out. What can Jake do? |
d. look somewhere else because the online catalog did not make an effective offer |
In an auction, the auctioneer acts as the: |
offeree |
The identification of the ____ . |
parties object consideration time payment |
The requirement that an offer be properly communicated to the offeree means that the offeror must inform the offeree about the offer in some effective way. |
t |
1. Revocation—Unless the offer is____ , it can be revoked at any time before acceptance without____ . |
irrevocable liability intent received rejection offer |
1. Lapse of time—The offer terminates at the end of the time period specified in the offer or, if no time period is stated in the offer, at the end of a ____ time period. 2. Destruction of the subject matter—When the specific subject matter of the offer is ____ before the offer is accepted, the offer ____ terminates. 3. Death or Incompetence of the offeror or offeree—If the offeror or offeree dies or becomes ____ , this offer terminates (unless the offer is ____ ). 4. Supervening illegality—When a statute or court decision makes the proposed contract____ , the offer automatically terminates. |
reasonable destroyed automatically incompetent irrevocable illegal |
Which of the following occurrences will NOT terminate an offer? |
a. acceptance |
An acceptance must match the terms of the offer exactly in order to be valid. This is known as the mailbox rule. |
f |
The mailbox rule means that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective. |
t |
You receive a letter telling you that you will start receiving a box of fresh fruit each month and that if you don’t want it, you have to reply within seven days. You ignore the offer. Your silence |
does not constitute an acceptance of the offer |
An acceptance sent by means not expressly or impliedly authorized normally is not effective until it is received by the offeror. |
t |
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