Question 1

In which case is the offer still valid at the time the acceptance is made?

Accepted Answer

A)  Hal offered to sell a book to Sid. Hal died, and Sid sent an acceptance two days later. 
B)  By-Waste Co. telephones XXX Co. offering to dispose of XXX Co.'s chemical waste by a particular method. XXX says it has another way to dispose of the waste. Then XXX finds out the method it planned to use violates environmental protection statutes, so it sends a letter of acceptance to By-Waste. 
C)  Ray offers to sell his AT&T stock for a particular price by May 1. On May 2, Kathy agrees to buy the stock. 
D)  In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts. 
E)  All of the above. 
A)  Hal offered to sell a book to Sid. Hal died, and Sid sent an acceptance two days later. 
B)  By-Waste Co. telephones XXX Co. offering to dispose of XXX Co.'s chemical waste by a particular method. XXX says it has another way to dispose of the waste. Then XXX finds out the method it planned to use violates environmental protection statutes, so it sends a letter of acceptance to By-Waste. 
C)  Ray offers to sell his AT&T stock for a particular price by May 1. On May 2, Kathy agrees to buy the stock. 
D)  In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts. 
E)  All of the above.

Question 2

On January 8,Quastrar,Inc.sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies.On January 18,Hylavian mailed a letter to Quastrar accepting the offer.Quastrar received the acceptance letter on January 20.On January 17,Quastrar sent a letter revoking the offer.Hylavian received this letter on January 21.A contract between Quastrar and Hylavian:

Accepted Answer

A)  was not formed because the revocation was effective before the acceptance was sent. 
B)  was not formed because the revocation was effective before the acceptance was received. 
C)  was formed on January 18. 
D)  was formed on January 20. 
A)  was not formed because the revocation was effective before the acceptance was sent. 
B)  was not formed because the revocation was effective before the acceptance was received. 
C)  was formed on January 18. 
D)  was formed on January 20.

Question 3

Acme Co.offers to buy 1000 widgets from Widget World Co.The written offer provides for 1000 at $10 per widget,to be delivered May 1.The offer has no other provisions.Widget World sends a written acceptance.However,the acceptance also states that if any claim arises under this contract,Widget World must be notified within 10 days.Acme does not object to this provision.Both parties are merchants.Which of the following best describes this situation?

Accepted Answer

A)  No contract exists. The purported acceptance contains additional terms, so it is a counteroffer, which has not been accepted. 
B)  No contract exists if the additional terms are construed to be material terms. 
C)  A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract. 
D)  A contract exists, but the additional terms are not part of the contract no matter what. 
A)  No contract exists. The purported acceptance contains additional terms, so it is a counteroffer, which has not been accepted. 
B)  No contract exists if the additional terms are construed to be material terms. 
C)  A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract. 
D)  A contract exists, but the additional terms are not part of the contract no matter what.

Question 4

In seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

Accepted Answer

A) True 
 B)False

Question 5

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby.Prince Charming came in last,much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that horse to the first person who hands me $100 bucks!" John has:

Accepted Answer

A)  made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. 
B)  made a firm offer and will be bound by his offer for a reasonable period of time. 
C)  made an acceptance to the first person who can produce $100. 
D)  not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer. 
A)  made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. 
B)  made a firm offer and will be bound by his offer for a reasonable period of time. 
C)  made an acceptance to the first person who can produce $100. 
D)  not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Question 6

Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

In which case is the offer still valid at the time the acceptance is made?

In seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby.Prince Charming came in last,much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that horse to the first person who hands me $100 bucks!" John has:

Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.

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