Chapter 11, Exam III – Flashcards
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An officer of International Sales Corporation makes overtures to a representative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever
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a reasonable person in the representativ'es position would think they meant
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May tries to start her car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby, who owns Nick's Pre-owned Autos, hands May $10. This is
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not a valid acceptance because May does not seriously intend to sell
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Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local's
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words and conduct
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Alan, a representative of Beta Services, Inc., make an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if
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Alan secretly does not intend to be bound by the offer
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Dona and Eden sign a lease that includes a clause permitting Dona to extend the lease at an amount of rent to be agreed on at the time of the extension. The clause is
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enforceable, if the parties intend the clause to be binding
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Jill tells Ken, who has no knowledge of literary comedy, that she will tutor him in the subject for $50. As an offer, this is
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effective.
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Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is
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a statement of future intent
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Beth foes to Dr Carl for surgery. Carl says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is
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not liable, because the statement was an opinion
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Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is
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no contract
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John says to Kris, "I would like to sell you my sports memorabilia collection." This is not an offer because it
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only invites Kris to negotiate
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Eve tells Frank that she would like to buy his Great Goodies store. Frank declines, but later decides to sell and sends to Eve, and others, a flyer describing the detail. Eve responds with a letter of "acceptance." Eve and Frank have
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no contract, because Frank sent the letter to more than one party
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Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "personalized" letter inviting him to buy any item in the catalogue at the advertised price. This is
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not an offer
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Elin decides to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind, she can withdraw her collection
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only before the auctioneer announces that the items are sold
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Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property
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under no circumstances
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Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is
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not a valid offer because the terms are not definite
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Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are
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reasonable definite
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Bob offers to sell Carol his computer but the conditions of the sale on Carol accepting the offer by May 1. Bob may revoke the offer
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before Carol accepts the offer
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Geof owns two cars. He offers to sell the Honda for $20,000 to Ilsa, who says, "I'll pay not more than $15,000." Geof offers to sell the Jeep for $20,000 to Kiki, but before Kiki responds, Geof says, "Forget it. I changed my mind." Geof's offer was terminated by
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Geof and Ilsa
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Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he
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did not know of the reward when he found and returned the dog
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Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is
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not liable, because the sale revoked the offer to Rapid
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Quality Vechicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck as been sold to State Trucking, Inc. Quality is
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not liable, because the sale revoked the offer to Regional
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Corner Convenience (Store) (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information leading to the apprehension of a certain criminal. CCS could normally terminate the offer by placing
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a full-page ad in the paper and a thirty-second commercial on the local station
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State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is
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received
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Business Properties, Inc., offers to sell a warehouse to Corporate Investments. Corporate saya that it will pay BPI $100 to hold the offer open for three business days. This
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makes the offer irrevocable for three days if BPI accepts
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Interstate Coffee Brokers, Inc., (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
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terminated
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Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will be
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ineffective because Liu justifiably relied on Kit's offer
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Optimal Sales Corporation plans to move to a new office. Optimal offers to sell its office furniture to Plentiful Marketing, Inc., but does not specify a time for Plentiful to respond. The offer expires
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after a reasonable period of time
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Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by
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Gwen only
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Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has
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rejected the offer and made a counteroffer
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New Cell Phone Company offers to buy a laser printer, with a case of paper and an extra cartridge, from Office Products, Inc. (OPI), for $200. Paul, OPI's representative, says, "okay, but no paper and no extra cartridge." Paul has
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rejected the offer and made a counter offer
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Kim sends an offer to Leo to cut down and remove a tree for $400. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to
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none of the choices (accept, counter, reject)
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Eagle warehouse offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest accepts. Eagle must obtain
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nothing for Forest, because the theft terminated the offer
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Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate
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after a reasonable period of time
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First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a stature is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank have
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no contract for a loan
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Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is required urgently. It would be most reasonable for Unified to accept via
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a fax sent to TF as soon as the offer is received
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Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete
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only after Frank unloads the truck
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Alan offers to transfer Beth's videotapes to CDs for $500. The mailbox rule will not apply if Beth accepts the offer by
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e-mail
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Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 a.m. Monday. A contract is formed if Shopping Stores' acceptance is received
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before 10a.m. Monday
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Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first, then changes his mind and sends an acceptance. Whether they have a contract is determined by
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whether Kyle's rejection or acceptance is received first
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Fine mining Corporation offers to sell Great Foundries, Inc., seven ons of aluminum. Great Foundries sends an acceptance via Fine Mining's authorized mode of communication. This acceptance is effective when it is
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sent
