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Exam 10: Agreement

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Question 41

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During a counteroffer, the previous offeror remains the offeror.

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Question 42

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An option contract is terminated upon the death of the offeror.

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Question 43

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Under the mailbox rule, an acceptance is only effective when it is received.

Which of the following statements is true about a revocation?

Luke offered to sell his farm to Kent at $75, 000, an offer which Kent declined.A week later, Luke offered to sell the farm for $65, 000, stating that it was the final offer, it was valid for one month, and that he would not alter it.Two days later, Kent replied by saying that he was willing to pay $60, 000 for the farm.A week after Luke received Kent's offer, Luke declined it.Ten days after that, Kent agreed to buy the farm for $65, 000, but Luke refused to sell the farm.Kent decided to sue Luke for a breach of contract.The judge ruled in favor of Luke.Which one of the following is the reason for the ruling in Luke's favor?

An offer is terminated on the grounds of "supervening illegality" when ________.

Identification of the parties of a contract would be an express term.

Identification of the subject matter and quantity would be an implied term.

Quentin is a member of the Album of the Month Club and receives a new music CD every month without fail.The Club usually gives its members a time period within which they can reject the selection and stop shipment of the CD, failing which the CD will be shipped.Last month, Quentin received a CD from Album of the Month Club, a copy of which a friend had already gifted him.He had not found time to reject the offer as he was away.Quentin could not reject the CD and had to buy it.What kind of an offer-acceptance model does Album of the Month Club have?

A(n) ________ is a voluntary exchange of promises between two or more legally competent persons to do, or refrain from doing, an act.

An offer that is made to two or more persons jointly must be accepted jointly.

The ________ theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Which one of the following would constitute a reward?

In an auction with reserve, the bidder can withdraw his bid after an acceptance has been indicated from the offeror.

________ is a stipulation in an offer that says the acceptance must be by a specified means of communication.

Techstate, a hardware manufacturer in the United States, has an existing contract with a client based in the Republic of Karthasia, which is going through a domestic political crisis.The resulting upheaval in that country has led to some of the shipments to the client being destroyed by warring factions.As a sanction against the country, the United States government places an embargo on all exports to that country by U.S.firms.What will be the state of the contract between Techstate and the client in Karthasia after the embargo?

In an auction with reserve, the bidder is the offeror.

Which of the following is a difference between acceptance and revocation?

The offer must be communicated to the offeree for the offer to be effective.

Only the offeree has the legal power to accept an offer and create a contract.