Exam 9: Offer and Acceptance

Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber accepts. Most likely, Kelly's death

Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks

Ricci, a user of SmartPhoneApps.com's website, can download apps for free if she first clicks on "I accept" after viewing certain terms. This is

Acceptance takes effect at the time the communication is sent via the mode authorized by the offeror.

Acceptance may consist of words or conduct.

On December 1, Petroleum, Inc., sent Rachel & Rico (R&R) a letter, via overnight delivery, offering to employ R&R to review Petroleum's tax situation for the current year for $10,000. In the letter, the company stated that R&R had ten days to accept. On December 5, R&R sent an e-mail message that stated, "The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day, Smith & Taylor, an R&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, R&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why R&R and Petroleum do, or do not, have a contract.

The power of acceptance can be terminated by operation of law.

The offeror can revoke the offer only be expressing repudiating it.

An effective offer requires reasonably definite terms.

The offeree must accept the offer without adding or changing any terms.

A request to negotiate is not an offer.

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer