chap 11

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Questions and Answers

What is one of the essential elements required for an effective offer?

The offer must include a payment method.

The offer must be made in writing.

The offer must be communicated to the offeree. (correct)

The offer must have a witness present.

Which of the following is NOT an example of a situation where intent may be lacking?

Formal contracts agreed upon by both parties (correct)

Expressions of opinion

Statements of future intent

Preliminary negotiations

Under what condition may preliminary agreements be considered binding contracts?

If they are notarized.

If all essential terms have been agreed upon. (correct)

If they include an expiration date.

If one party already paid a deposit.

What does the objective theory of contracts state about determining an offer's intent?

It considers what a reasonable person in the offeree’s position would conclude. Signup and view all the answers

Which of the following types of communication would likely be considered an offer?

A clear statement promising to sell goods at a specified price. Signup and view all the answers

What can be concluded about offers made in advertisements?

They lack intent unless accompanied by specific terms. Signup and view all the answers

In which scenario would an expression of opinion NOT be considered an offer?

A company announces they are considering mergers. Signup and view all the answers

When can agreements to agree be considered enforceable?

When it is clear the parties intended to be bound by their agreements. Signup and view all the answers

What is essential for an offer to be considered effective?

It must be communicated to the offeree. Signup and view all the answers

Which of the following describes the definiteness requirement in contracts?

The terms must be clear enough to allow the court to determine breach. Signup and view all the answers

What characterizes a preliminary agreement in contract law?

It expresses the parties' intent to enter into a binding agreement later. Signup and view all the answers

How must an offer be communicated to be valid?

It must be made directly to the offeree by the offeror. Signup and view all the answers

What does the objective theory of contracts state?

The external actions of the parties determine contract existence. Signup and view all the answers

What is a characteristic feature of click-on agreements?

They are formed by clicking on a button to accept terms. Signup and view all the answers

Which of the following best describes the Uniform Electronic Transactions Act?

It sets rules for the validity of electronic records and signatures. Signup and view all the answers

What is a common misconception about the definiteness of offers?

Offers can be vague as long as the parties agree. Signup and view all the answers

In which situation can silence be considered acceptance?

When the offeree has prior dealings with the offeror. Signup and view all the answers

What distinguishes unilateral contracts from bilateral contracts regarding acceptance?

Unilateral contracts require performance of an act, while bilateral contracts require a promise. Signup and view all the answers

What does the Mailbox Rule state about acceptance?

Acceptance is valid when it is dispatched through the mail. Signup and view all the answers

When is an acceptance made by a substitute method effective?

When the substitute method serves the same purpose as the authorized means. Signup and view all the answers

Which of the following is NOT a basic requirement for e-contracts?

Express written documentation. Signup and view all the answers

What happens if an offeror specifies the way acceptance must be communicated?

The contract is formed only if the offeree uses the specified mode of acceptance. Signup and view all the answers

Which type of contract requires communication of acceptance as a promise?

Bilateral contracts. Signup and view all the answers

What reflects the intention of the offer in contract law?

Clear, objective actions indicating the willingness to enter a contract. Signup and view all the answers

Study Notes

Offer

An offer is a commitment to act or refrain from acting in the future.
To be effective, an offer needs:
- Serious intention by the offeror
- Definite terms
- Communication to the offeree

Intention of the Offer

Intention is determined by what a reasonable person would conclude from the offeror's actions and words.
Expressions of opinion, statements of future intent, preliminary negotiations, invitations to bid, advertisements, and price lists do not constitute an offer.

Agreements to Agree

May be binding if the parties intend to be bound.

Preliminary Agreements

May be binding if all essential terms are agreed upon and no disputed issues remain.

Acceptance

Acceptance is the act of agreeing to an offer.
Acceptance may be expressed or implied.
- Implied acceptance may arise from silence or inaction when prior dealings exist between the parties.

Communication of Acceptance

Unilateral contracts: Acceptance is typically evident when the act is performed
- Notification is generally not required unless requested by the offeror.
Bilateral contracts: Acceptance must be communicated since it is in the form of a promise.

Mode and Timeliness of Acceptance

Mailbox Rule: Acceptance is valid when dispatched through the mail.
Authorized Means of Communication: The offeror can specify how acceptance should be made, and the contract is not formed unless the offeree uses that method.
Substitute Method of Acceptance: A substitute method of acceptance can be valid if it serves the intended purpose.

E-Contracts

Electronic contracts must meet the same requirements as paper contracts to be valid.
Online contracts can be used for goods and services, as well as licensing.

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Description

This quiz explores the principles of offers and acceptance in contract law. Learn about the necessary elements that make an offer effective, the significance of intention, and the nature of acceptance. Test your understanding of binding agreements and the nuances of communication in contracts.