Exam 10: Mutual Assent

Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order. Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance. What is the status of the interaction between Action and Brace?

To be effective, an offer must:

If Todd seemingly offers to sell to Ashton his wood gun cabinet but intended to and believes he is offering his wood china cabinet, and Ashton accepts the offer, reasonably believing it is for the gun cabinet, a contract is formed for the sale of the gun cabinet.

Distinguish between a rejection of an offer and a revocation of an offer.

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

The UCC provides missing contract terms in which of the following instances?

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

An offer can only be communicated by words; conduct cannot constitute an offer.

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy. In this case:

Discuss how parties show mutual assent and what standard is used to determine agreement.

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:

Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Will's offer illegal. The new statute:

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100?

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

George offered to paint Catherine's barn for $3,000. Catherine said she would accept the offer if George would paint the woodshed, too. At this point, they have made a valid and enforceable contract.