Ch. 10

Question 0

To be effective, an offer must be what 3 things?

Answer 0

1. ) Be communicated to the offeree
2. ) Manifest an intent to enter the contract
3. ) Be sufficiently definite and certain

Question 1

Offer

Answer 1

A definite undertaking or proposal made by one person to another indicating a willingness to enter into a contract

Question 2

An offer must manifest WHAT to enter into a contract?

Answer 2

Intent; determined objectively from the words or conduct of the parties

Question 3

Good Faith

Answer 3

Honesty in fact in the conduct or transaction concerned

Question 4

Commercial Reasonableness

Answer 4

The business judgment of reasonable persons familiar with the customary practices of the type of transaction involved

Question 5

Output Contract

Answer 5

An agreement of a buyer to purchase a seller’s entire output for a stated period

Question 6

Requirements Contract

Answer 6

An agreement of a seller to supply a buyer with all his requirements for certain goods

Question 7

What are the 7 ways an offer may be terminated?

Answer 7

1. ) Lapse of time
2. ) Revocation
3. ) Rejection
4. ) Counteroffer
5. ) Death or Incompetency (of the offerer or offeree)
6. ) Destruction of the subject matter
7. ) Illegality

Question 8

When can an offer be Revoked?

Answer 8

An offer may be canceled (or revoked) at any time PRIOR to its acceptance when the offeree RECEIVES notice of it being revoked

Question 9

What 5 situations restrict the offeror’s power to revoke an offer?

Answer 9

1. ) Option Contracts
2. ) Firm Offers under the Code
3. ) Statutory Irrevocability
4. ) Irrevocable Offers of Unilateral Contracts
5. ) Promissory Estoppel

Question 10

Rejection

Answer 10

A manifestation by the oferee of his unwillingness to accept

Question 11

Counteroffer

Answer 11

A counterproposal from the offeree to the offerer of a willingness to contract but on different terms/ conditions than the original offer

Question 12

Conditional Acceptance

Answer 12

Type of counteroffer that claims to accept the offer, but only if the offerer assents to additional or different terms

Question 13

Firm Offer

Answer 13

Written promise not to revoke an offer for a stated period of time

Question 14

The ________ of an offer is essential to the formation of a contract.

Answer 14

Acceptance

Question 15

Authorized Means

Answer 15

Any reasonable means of communication

Question 16

The _____ communication ________ is the effective one.

Answer 16

First; received

Question 17

What must an acceptance be in order to create a contract?

Answer 17

1. ) Positive & Unequivocal
2. ) Mirror Image of the offer
3. ) May NOT modify the provisions of the offer in any way