Exam 10: Mutual Assent

Hugh recently purchased a motorcycle for $4,000 but has had extensive problems starting the motor.In disgust at not being able to start the motorcycle, Hugh shouts to his friends, "Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Hugh a twenty-dollar bill.

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

An offer is an indefinite proposal made by one person to another.

In order to form a contract, the parties must:

Silence can never be an acceptance.

If an offer states that a reply must be received by a certain date, the contract is formed at the time the offeree sends or dispatches the acceptance.

The person to whom an offer is made is an offeree.

The law applies a subjective standard of intent in determining whether there was the requisite intent to enter into a contract.

Shirley hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist.She supplies the requested information, and the suspect is then arrested and convicted.In this case:

Hannah, as a joke, offers to sell her violin to Mike.Her statement would have legal effect if:

An offer must be in one particular form to have legal effect.

Ricardo posts a sign in his neighborhood offering $50 for the return of his Saint Bernard.Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

Which of the following would most probably be considered a valid offer?

Lynn offers to sell his house to Dennis for $95,000.Dennis responds, "I will pay you $95,000 if you will paint the second floor." This response could best be described as:

An offer must be communicated to the offeree in order for the offer to be effective.

An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.

When a bid is made at an auction, it can be revoked if the auctioneer has not yet accepted the bid because the auctioneer has the power of acceptance.

Jesse makes an offer to Ike, and Ike accepts; then the state legislature passes a law that makes performance of the contract illegal.What is the effect of the new statute on the contract?

Wes, who is an art collector, offered to buy a print from Le Monde Gallery.Le Monde balked at the price, sending Wes a letter of rejection.That day it discovered that the print was not as highly valued as originally thought.Le Monde immediately telephoned Wes to accept his offer.Is there a contract?