Which of the following is true with regard to the offer and acceptance necessary to form a contract?
A)An ad in the newspaper that reads "Best offer in town! A new 2012 Honda Civic for only $15 999!" is considered an offer.
B)If a seller offers to sell for $100 and the buyer makes a counter-offer of $90 that is rejected by the seller,the buyer can accept the original offer of $100 and bind the seller in contract.
C)A purchased option that states "This offer to be open until noon tomorrow" prohibits the offeror from revoking the offer before that time.
D)A person can accept an offer after it has lapsed.
E)Where the acceptance is effective is not an important factor in determining the place of contract.

Question

Quizplus · Accepted Answer

A purchased option creates a contract between the buyer and the seller, where the seller agrees to keep the offer open for a specified time period. During this time, the offeror cannot revoke the offer. Choice A is incorrect as an ad is usually considered an invitation to make an offer, rather than an offer itself. Choice B is incorrect as a counter-offer terminates the original offer, and the buyer cannot then accept the original offer. Choice D is incorrect as an offer can only be accepted while it is still valid, and once it has lapsed, there is no longer an offer on the table. Choice E is incorrect as the place of performance of a contract is an important factor in determining the place of contract.

Which of the Following Is True with Regard to the Offer