Agreement Flashcards

True/False: When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it “for less than $2,000. “Olga replies, “I accept,” and hands him $2,000. A contract exists.

True/False: Revocation is the withdrawal of an offer by the offeror.

True/False: April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on six contracts to sell her computer for $500.

True/False: You have placed an antique desk up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the desk at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

True/False: In seeking to ascertain whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

True/False: On Monday, Harry puts an offer in the mail to Sally to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning

True/False: Vern Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, “To our valued customers.” Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vern Valve must sell the valves to Honest Hank for the prices quoted on the list.

True/False: A letter of intent summarizes progress made during business negotiations, but it does not necessarily create a binding contract.

True/False: According to the UCC, one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to grant an appropriate remedy.

True/False: Nunnsky’s Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. If Nunnsky’s acted in bad faith in its advertising, consumers may have protection through state statutes.

True/False: Nella offers to sell her crop of strawberries, which have just been picked, to Morgan’s Market. Since she does not specify a time limit for acceptance, Morgan’s can accept the offer the following week, as long as Nella has not revoked it.

True/False: Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc. agreed to purchase all the sugar cane Sweet Plantation grew during the coming season. This contract will be unenforceable due to its vagueness.

True/False: If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and medium.

True/False: Software clickwrap and shrinkwrap agreements limiting the manufacturer’s maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

True/False: If both parties believe they have a binding contract, this belief is controlling if there is later a question about the validity and enforceability of the agreement.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John’s frustration and embarrassment. John exclaims in a loud voice, “I’m selling that horse to the first person who hands me $100 bucks!” John has:

NOT MADE AN OFFER B/C UNDER THE CIRCUMSTANCES A REASONABLE PERSON WOULD NOT CONCLUDE THAT JOHN HAD INTENT TO MAKE AN OFFER

Which of the following are generally considered to be legal offers?

NONE OF THE ABOVE ARE GENERALLY CONSIDERED OFFERS

The intent of the offeror to extend an offer to the offeree is generally determined by reference to:

THE WORDS AND CONDUCT OF THE OFFEROR

The Johnsons decided to sell their summer cabin on Beech Lake. They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin. The flyer described the location of the property, the size of the lot, and the price. If one of the recipients responds by sending a letter accepting, an agreement:

WILL NOT BE FORMED B/C THE FLYER WAS SENT OUT AS AN INVITATION TO NEGOTIATE

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack. If the place of delivery and time for shipping the goods are not specified, the UCC provides:

THE PLACE OF DELIVERY IS LUMBER JACK’S AND THE TIME FOR DELIVERING THE LUMBER IS A REASONABLE TIME BASED ON NORMAL TRADE PRACTICE

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

THE OFFER TERMINATES AUTOMATICALLY UPON FLOYD’S DEATH

On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian:

WAS FORMED ON JANUARY 18

Which of the following offers are considered to be irrevocable for a given period?

ALL OF THE ABOVE

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

MARY’S COUNTEROFFER TERMINATES CARL’S OFFER OF 1500

If an offer specifies no time limit in which to accept:

THE OFFEREE HAS A REASONABLE PERIOD DURING WHICH TO ACCEPT

Dick offes to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

THE OFFER IS TERMINATED BY LAW

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of intent which:

MAY OR MAY NOT BE AN OFFER DEPENDING ON THE EXACT LANGUAGE AND WHETHER THE DOCUMENT INDICATES THAT THE PARTIES HAVE REACHED AN AGREEMENT.

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales’ business:

THE CONTRACT MAY INDICATE A METHOD FOR DETERMINING THE PRICE, W/O STATING A DEFINITE PRICE

Jaime offered to buy Kevin’s bike. Jamie is the:

Acme Co. offers to buy 1000 widgets from Widget World Co. The written offer provides for 1000 at $10 per widget, to be delivered May 1. The offer has no other provisions. Widget World sends a written acceptance. However, the acceptance also states that if any claim arises under this contract, Widget World must be notified within 10 days. Acme does not object to this provision. Both parties are merchants. Which of the following best describes this situation?

A CONTRACT EXISTS IF THE ADDITIONAL TERMS ARE CONSTRUCTED TO BE MATERIAL, THEY ARE NOT PART OF THE CONTRACT