Exam 10: Agreement

Supervening illegality of the object of a contract occurs in which of the following circumstances?

Revocation of an offer may be done anytime prior to acceptance by the offeror.

Pam offers a reward for the return of the pet snake that escaped from her purse while she was having dinner at a restaurant.Fred finds the snake and returns it to her.Which of the following is relevant in deciding whether Pam must pay the reward?

If an offeree gives a rejection to the offeror,which of the following is true at this point?

Marilyn decides to sell the diamond broach she inherited from her grandmother at an auction "with reserve." Can she withdraw the broach from sale?

The offeree has the power to create a contract by accepting the offer.

In order to collect a reward,the person must:

David decides to sell his coin collection at an auction that is advertised as being "without reserve." Can David change his mind and withdraw the collection from the auction?

An offer made in anger,where a reasonable person would not have known that it was made in anger,cannot result in a contract.

Where the terms of an offer are indefinite,the court can supply a missing term if a reasonable term can be implied.

The requirement that the terms of the acceptance be the same as those of the offer is the:

Tom lives in Michigan in a neighborhood with many elderly persons.Tom's next door neighbor,Thelma,is a retired CPA.In early February of 2002,Tom and Thelma discussed Thelma possibly doing Tom's personal income tax return.Tom told Thelma that he would pay her $300 to do his income tax return for 2001.Thelma said she would probably be able to,but that she could not commit and would let him know.She said she was going to Arizona to look for a home because she hoped that this would be her last winter in Michigan.Tom had always liked Thelma's house and asked what she was planning to do with it.She said she would be putting it on the market as soon as she found a place she liked in Arizona.Tom then told Thelma that he might be interested in the house.Thelma said,"I'll sell you my house for $240,000.You can think about it because I won't be doing anything else about selling it until I find my new place in Arizona.A real estate agent told me it could bring $270,000,but my price is $240,000 for you." Thelma left a week later and went to Arizona,with nothing further said about the taxes or the house.In late March,Thelma sent Tom a fax that she had found a new house and restated the offer's terms and asked Tom if he wanted the house.Tom sent a return fax stating that he thought he wanted it,but he needed to check on his finances before committing.Before there were any further communications,Thelma died the next day.Two days later,not knowing that Thelma had died,Tom sent her another fax in Arizona that he wanted the house at her price of $240,000.Tom did not learn of her death until April 12.Tom then had to find someone at the last minute to prepare his income tax return at a cost of $500.Tom also notified the executor that he wanted to proceed with his contract to buy the house even though Thelma had died.The executor refused,leading Tom to sue for damages from the tax return and house sale.Discuss the issues and outcome.

John offered to sell Jane his 1959 Thunderbird automobile.Before Jane could accept the offer,lightning struck the car,and it was totally destroyed.Which of the following is true?

Denny is selling his house at an auction with reserve.Albert offers $50,000.Betty says,"I'll pay $60,000,if the bank will loan me that much." Denny says,"Forget it! I am not going through with the sale of my house." Carl then says,"I'll pay you $70,000 for it." Who gets the house?

Advertisements are usually considered to be:

Objective intent refers to the actual intent of a particular person.

Under modern law,the court can supply a missing contract term if a reasonable term can be implied.

A rejection of an offer is generally not effective until it is received by the offeror.

Sam receives an offer that states: "I will sell you my car for $8,500,you have 10 days to accept." On Day 4,Sam tells the seller that he will give him $8,000,but the seller rejects this.Which of the following is true?

Wilbur,who has had difficulty making up his mind for most of his 29 years,was sitting around on Sunday with some of his friends.At one point,he says,"I'm going to try to sell my car,and if I get an offer close to $9,000 I'm going to take it." Andy,one of the friends,thinks to himself that this might be a good deal.The following events occur later that same week: Monday: Wilbur arranges with the local newspaper for an advertisement to run beginning on Saturday which will say,"1999 Honda Prelude,excellent,1st $8,000 takes it.See it at 1902 Maple Street." Thursday: Andy delivers a note to Wilbur,which Wilbur reads later on Tuesday.The note says,"I'll take your car for $9,000" and is signed by Andy. Friday: Wilbur thinks he may have under-priced the car and calls the paper to cancel.It is too late to make changes for Saturday so the ad runs.A new ad will start Sunday that does not mention a price but he expects that the car should bring close to $10,000. Saturday: Bob shows up with $8,000 in hand to buy the car.Wilbur refuses to sell the car to Bob. Andy and Bob each separately sue Wilbur wanting to force him to sell the car claiming that a contract has been formed.Discuss separately each case and how it might come out,including the arguments the parties would most likely raise.