Exam 10: Mutual Assent

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:

If a person,without knowing of an advertised reward for information leading to the return of a lost dog,gives information that leads to its return,is she entitled to the reward?

An output contract is an agreement of a buyer to purchase a seller's entire output for a stated period.

If no time is stated,an offer will terminate automatically after a reasonable period of time.

Albert read ElectroCorp's ad in the local newspaper advertising a music system for $89.Albert rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $289.Albert gave the salesperson $89 plus sales tax and demanded the music system.

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

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."

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts,the courts will complete the contract in the court's best judgment.

To be effective,an offer must:

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

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Maylin's offer stated that Camille's acceptance should be by regular mail,to be received no later than June 30.Camille didn't decide to accept until June 29 and was afraid regular mail would take too long.Camille faxed an acceptance on June 29.Since Camille used an unauthorized means of acceptance:

For an offer to be valid:

Discuss silence as acceptance of an offer.

A conditional acceptance:

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.

Destruction of the subject matter has what effect on the offer?

The UCC provides that a merchant is bound to keep a written offer open for the stated period,but no longer than:

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:

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.