Question 1

Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to notify the offeror of non-acceptance.

Accepted Answer

In contract law, silence can be considered acceptance if there is a history of dealings between the parties where silence was understood as acceptance, making it reasonable for the offeree to notify the offeror if they do not accept.

Question 2

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered as accepted.

Accepted Answer

False

Question 3

A firm offer can be best defined as:
A) an offer that cannot revoked for a reasonable time if no time is stated.
B) an offer that becomes invalid if payment is not made to the offeror.
C) a written document which has a seal in place of the merchant's signature.
D) a verbal promise to hold an offer open.

Accepted Answer

A firm offer is an offer that cannot be revoked for a reasonable time if no time is stated. This type of offer is often used in commercial transactions, where a seller wants to ensure that the buyer will not go to another seller before finalizing the deal. Once the offer is made, it is binding on the offeror for the time period specified, or for a "reasonable" time if no specific time is stated.

Question 4

Which of the following is true of a valid offer?
A) It is indefinite in nature.
B) It is instituted by the offeree to the offeror.
C) It is seriously intended.
D) It can be accepted by anyone who hears about it.

Accepted Answer

A valid offer must be seriously intended. This means that the offeror must intend to create legal relations and be willing to be bound by the terms of the offer. An offer cannot be indefinite in nature, as it must be sufficiently specific so that the offeree can understand what is being offered. It cannot be instituted by the offeree, as the offeror is the party making the offer. And it cannot be accepted by anyone who hears about it, as an offer is only valid if it is communicated directly to the offeree.

Question 5

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?
A) Lily is still entitled accept the offer through legal action.
B) Lily can accept the offer within a period of ten days after Maya's death.
C) Lily must consider the offer automatically revoked and void.
D) Lily can claim that she was not aware of Maya's death and accept the offer.

Accepted Answer

Once Maya passed away, her offer to sell the house becomes void as there is no legal capacity for her to enter into any contract. Therefore, Lily must consider the offer automatically revoked and void. Any acceptance of the offer after the death of Maya will not create a valid contract.

Question 6

An offeree's response that rejects an offer by varying its terms is known as a(n) _____.
A) counteroffer
B) option
C) circular
D) invitation

Accepted Answer

An offeree's response that rejects an offer by varying its terms is known as a counteroffer. It is different from an acceptance, which is a clear agreement to the terms of the offer, and from a rejection, which is a refusal to accept any of the terms.

Question 7

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

Accepted Answer

The "mailbox rule" generally states that an acceptance becomes effective once it is dispatched by the offeree, even if the offeror never receives it.

Question 8

According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.

Accepted Answer

The answer of According to the Uniform Commercial Code, a...

Question 9

Which of the following is a requirement for the acceptance of an offer to be valid?
A) Acceptance of the offer must be made through a set of prescribed procedures.
B) The acceptance must be communicated by the offeree to the offeror.
C) The acceptance should be made through a mere mental intention to accept the offer.
D) Acceptance of the offer must be made after a binding contract has been formulated.

Accepted Answer

The answer of Which of the following is a requirement...

Question 10

What are the requirements of a valid offer? Explain.

Accepted Answer

The answer of What are the requirements of a valid...

Question 11

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

Accepted Answer

A merchant has the right to withdraw the item or correct the price before a transaction is made. Once the transaction is made, both parties are bound by the terms of the agreement. However, if there was an error in the advertised price, the merchant may have the right to cancel the transaction.

Question 12

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer.

Accepted Answer

A counteroffer is considered a rejection of the original offer because it introduces new terms or conditions, thus nullifying the initial offer.

Question 13

A valid offer is one that is indefinite.

Accepted Answer

A valid offer must be definite and clear in its terms to be legally enforceable. Indefinite offers lack the necessary specificity.

Question 14

Advertisements and catalogs are examples of general invitations.

Accepted Answer

Advertisements and catalogs are designed to promote and encourage people to buy products or services, making them a form of general invitation.

Question 15

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.
A) claimant
B) offeror
C) acceptor
D) summoner

Accepted Answer

Ryan is the offeror because he is the one who made the offer to sell the car to Luiz.

Question 16

An offer expresses the willingness of the offeror to enter into a contractual agreement.

Accepted Answer

An offer is a proposal made by one party to another, expressing a willingness to enter into a contractual agreement on certain terms and conditions. It is an essential element of a contract and must be communicated clearly and unambiguously to the offeree.

Question 17

Which of the following is true of revocation of an offer?
A) The offeror can revoke an offer any time after a contract is formed.
B) The binding promise to hold an offer open can be revoked at will.
C) The offer is terminated by the lapse of the time specified in the offer.
D) The revocation of an offer should be communicated to the offeree after his assent.

Accepted Answer

An offer is terminated by the lapse of the time specified in the offer if the offeree does not accept it within that time frame.

Question 18

The offeree may make an inquiry about terms that differ from the offer's terms without rejecting the offer.

Accepted Answer

An inquiry about different terms is not a rejection but rather a request for information, which does not terminate the original offer.

Question 19

Which of the following is true of offers and invitations?
A) Window displays and catalogs are examples of personal invitations.
B) Letters addressed to a specific person automatically makes them personal sales letters.
C) The general rule is that circulars are offers made to specific customers.
D) Circulars are invitations to the recipients to make an offer.

Accepted Answer

Circulars are generally considered invitations to treat, meaning they invite recipients to make an offer rather than being offers themselves.

Question 20

Which of the following is true of a binding contract?
A) It allows an offer to be revoked once the contract is formed.
B) It is created when an offeree makes a proposal to the offeror.
C) It is considered valid when the offer made is indefinite in nature.
D) It is created when the offeree clearly shows an intention to accept the offer.

Accepted Answer

The answer of Which of the following is true of...

Quiz 6: Offer and Acceptance

Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to notify the offeror of non-acceptance.

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered as accepted.

A firm offer can be best defined as:

Which of the following is true of a valid offer?

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

An offeree's response that rejects an offer by varying its terms is known as a(n) _____.

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.

Which of the following is a requirement for the acceptance of an offer to be valid?

What are the requirements of a valid offer? Explain.

If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer.

A valid offer is one that is indefinite.

Advertisements and catalogs are examples of general invitations.

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.

An offer expresses the willingness of the offeror to enter into a contractual agreement.

Which of the following is true of revocation of an offer?

The offeree may make an inquiry about terms that differ from the offer's terms without rejecting the offer.

Which of the following is true of offers and invitations?

Which of the following is true of a binding contract?