Exam 10: Mutual Assent

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts, the courts will complete the contract in the court's best judgment.

If there is no time specified for the acceptance of an offer, when does the offer terminate?

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?

An offer must use particular wording to have legal effect.

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.

On June 1, Edward visited a bicycle sales and service center.Edward spotted a used bike he liked and was told by the dealer that he could have the bike for $100 cash.Since Edward needed a few days to get the money, Edward got a signed, written statement by the dealer that Edward could buy the bike for $100 at anytime on or before June 15.On June 10 Edward came to the dealer with the money, but the bike had been sold to another customer.Was the dealer under any obligation to Edward to keep this offer open until June 15? Give legal reasoning for your answer.

Silence can never be an acceptance.

If Coy tells Sari that he will give her two days to decide if she wants to buy his motorcycle, he cannot sell it to anyone else during that time.

What are the ways in which an offer may be terminated?

a.What are the three essentials of an offer? b.How does one distinguish between an offer and an invitation seeking offers?

If an offer states that a reply must be received by a certain date, receipt is presumed in those situations when acceptance is mailed.

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene.The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

Bart sends Carla an offer by express mail.Carla receives it at 10 a.m.on Tuesday.At 11 a.m.on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but due to their error, the letter is not sent out by the company until Wednesday at 8 a.m.At what time does the law consider the acceptance to be effective?

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

A __________ is the refusal to accept an offer.