Exam 10: Mutual Assent

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.

Under FTC regulations and state legislation, a seller may not advertise goods at one price and then raise the price once demand has been stimulated.

Bailey attended an auction and bid $150 on an antique dresser. No one else made a higher bid. Discuss the effect of (a) the designation that the auction is without reserve, (b) the advertisement that the auction is with reserve, and (c) the lack of any announcement or advertisement as to whether the auction is with or without reserve.

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

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

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

An acceptance that contains terms different from or additional to those in the offer receives the same treatment under the common law and under the UCC.

Contract law generally places more importance on the intent of the parties to form a contract than on the inclusion of certain terms in the contract.

In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge only of the eight-hour-a-day operating schedule.

Robinson Wiring Co. submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex. Robinson knows Turner is relying on Robinson's bid. Robinson:

Don offers to sell his diamond ring to Emily. If Diane overhears the offer and says, "I accept the offer":

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.

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

A conditional acceptance:

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.

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

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:

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?

Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 square yards of carpet at $20 per square yard. Bob agrees and sends back the following letter confirming the deal: Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 square yards of Saxony "heather blue" carpeting at the rate of $20 per square yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date. Very truly yours, Bob Which of the following is true?

On June 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 30, the city passed a new law prohibiting consumption of alcohol in the city park. The civic club's offer is terminated on June 30.