Exam 10: Mutual Assent

Serafina's Boutique places an ad in the Sunday paper for finely tailored, top-of-the-line designer suits for $10.00, which is a misprint. Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job. Serafina apologizes for the misprint. Alice has just finished a class in contract law and insists that the store sell her five suits for $50. Alice threatens to sue Serafina for breach of contract.

Watson knows Jackson is interested in buying his house, so he offers to sell the house to Jackson for $195,000. Jackson responds, "I will pay you $195,000 for the house if you first replace the roof." Jackson's response would best be described as:

Which of the following would NOT be a merchant under Article 2 of the UCC?

On Monday morning Ethan sends a letter to Eva rejecting her offer to sell him her lawnmower, but a few hours later, Ethan changes his mind and sends a letter of acceptance to Eva. The letter of acceptance will be effective only if it is received by Eva before she receives the rejection.

An offer must use particular wording to have legal effect.

For an offer to be valid:

Adrianne offered to sell her smartphone to Tom for $400 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Adrianne had sold the phone to Cindy. In this case:

In the case of Lefkowitz v. Great Minneapolis Surplus Store, Inc. , the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

A contract that binds the offeror to keep an offer open for a specified period of time is known as:

Hugh recently purchased a motorcycle for $3,000 but has had extensive problems starting the motor. In disgust at not being able to start the motor, 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.

On May 1, a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event. On June 1, the city passed a new law prohibiting consumption of alcohol in the city park, effective June 30. The civic club's offer is terminated on June 1.

Which of these is a revocable offer?

An auctioneer is the offeror and a contract is formed when a bid is made.

Both the Code and the Restatement provide that an authorized means of accepting an offer is any reasonable means of communication.

If Megan intends to offer and believes she is offering for sale to Alexis her RL1500 space heater and Alexis reasonably believes Megan is offering her RL1900 heater and accepts on that belief, a contract has not been formed because there was no agreement as to the subject matter.

Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce Pete into keeping his offer open for a week. If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of a breach of contract lawsuit being filed against him.

Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives at the offeror's place of business on November 5. In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6. Which of the following statements correctly describes the situation?

If Anna Laura, in return for the payment of $200 to her by Catherine, gives Catherine an option to buy Achraji, a prime Arabian mare, at any time within the next 14 days at a price of $50,000, Anna Laura's offer to Catherine is:

A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is:

Which of the following is not a requirement for an offer to be effective?