Exam 11: Agreement

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and medium.

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:

A letter of intent summarizes progress made during business negotiations,but more importantly,it creates a binding contract.

Jaime offered to buy Kevin's bike.Jamie is the:

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale.You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

When Olga asks Sven if he wishes to sell his Harley motorcycle,he replies that he would not sell it "for less than $2,000." Olga replies,"I accept," and hands him $2,000.A contract exists.

If both parties believe they have a binding contract,this belief any later questions about the validity and enforceability of the agreement.

If an offer specifies no time limit in which to accept:

Oxtron,Inc.sent the following price list to its customers. Which statement is correct?

Which of the following offers are considered to be irrevocable for a given period?

On Monday,Mick puts an offer in the mail to Sheri to sell his guitar for $50.Monday night when jamming with his buddies,he decides he will really miss his old guitar and has second thoughts about selling it.Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale.The revocation is effective on Tuesday morning.

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit.The salesperson told Seth they were sold out of that bag,but there were two other styles that would meet his needs and were the same price.Seth insisted he wanted the advertised bag and threatened to sue for breach of contract.Which is true?

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Spangel Fashions sends out its spring and summer catalog to Cindy.Cindy falls in love with the cute dress featured on the front cover of the catalog.When Cindy calls to order the dress,she is informed that the company has sold out of the dress.Cindy is upset and claims that the store is in breach of contract.She argues that the catalog presented an offer,which she accepted when she called to order the dress.Is Cindy correct? Why/why not?

Vick Valve Company makes valves for plumbing fixtures.At the beginning of the year,it sends out a price list addressing each one,"To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list.Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

Revocation is the withdrawal of an offer by the offeror.

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50.In fact,the store had only two,out-of-style suits for sale at this price.Their other wool suits started at $175.This contstitutes bad faith in its advertising,so consumers may have protection through state statutes.

The intent of the offeror to extend an offer to the offeree is generally determined by reference to:

Collector Carl displays his beer can collection at the local swap meet.Mary sees the collection and is interested in buying it.Carl says he will sell the collection for $1,500.Mary says she really likes the collection but is only willing to pay $1,000.Which of the following is correct?

The Johnsons decided to sell their summer cabin on Beech Lake.They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin.The flyer described the location of the property,the size of the lot,and the price.If one of the recipients responds by sending a letter accepting,an agreement: