Week 2 - Test 1

Question 1

The first step to a contract–agreement–is a “(1)” or the “(2)”.

Answer 1

1. meeting of the minds

2. manifestation of mutual assent

Question 2

used to determine whether parties had “meeting of the minds, looks to what a reasonable person would believe, based on circumstances

Answer 2

objective standard

Question 3

an indication of current willingness to enter into a contract, communicated by the person making the offer

Answer 3

offer

Question 4

party making the offer

Answer 4

offeror

Question 5

party receiving an offer

Answer 5

offeree

Question 6

To indicate a current willingness to enter into a contract, an offer must be sufficiently (1) in its terms.

Answer 6

definite

Question 7

4 things in a contract that must be definite

Answer 7

1. subject
2. consideration (price)
3. parties
4. time

Question 8

(1) does not govern contracts, because it is a contract between (2).

Answer 8

1. Common law

2. merchants

Question 9

defined by the UCC as any person who regularly deals in the kind of goods covered by the contract or who, by occupation, hold himself out as having knowledge or skills peculiar to dealings with the goods in question

Answer 9

merchant

Question 10

also called “gap-filling” provisions; under the UCC a contract may form despite failure to specify certain terms

Answer 10

open terms

Question 11

Once (1), the contract forms, after which a lawsuit may follow a refusal to honor the contract.

Answer 11

1. an offer is accepted

Question 12

The most common way that an offer ceases to exist. An offer that is not, in itself, a contract, can be revoked at any time before acceptance.

Answer 12

revokation

Question 13

an offer, supported by consideration, may not be revoked at will

Answer 13

option

Question 14

UCC Rule; no consideration required to hold offer open between merchants

Answer 14

firm offer

Question 15

If the offer proposes a unilateral contract, the ability to revoke is limited, once the offeree has begun (1)

Answer 15

1. substantial performance

Question 16

a seller agrees to sell to the highest bidder and cannot revoke the offer to sell, even if bids are disappointingly low

Answer 16

auction without reserve

Question 17

offeree terminates offer

Answer 17

rejection

Question 18

offeree respond to offer with an offer–may terminate original offer, depending on circumstances

Answer 18

counteroffer

Question 19

3 ways a contract can be terminated by law

Answer 19

1. illegality
2. passage of time
3. death/insanity

Question 20

events, including deat, insanity, destruction of subject matter, and illegality, may terminate an offer

Answer 20

operation of law

Question 21

compliance or agreement by one party with the terms and of anothers’ offer so that a contract forms

Answer 21

acceptance

Question 22

Acceptance can be implied based on (1), (2) or (3)

Answer 22

1. behavior
2. partial performance
3. past dealings

Question 23

common law rule; acceptance occurs when dispatched by appropriate means

Answer 23

mailbox rule

Question 24

acceptance must be identical to offer (changes = counteroffers)

Answer 24

mirror image rule

Question 25

UCC Rule; overrides mirror image rule when merchants use forms

Answer 25

battle-of-the-forms rule

Question 26

Offer + counteroffer + acceptance

Answer 26

negotiation

Question 27

Manifestation of assent is the "(1)" of agreement. It is a (2), as if both parties know what the other is thinking. An implied contract is different in this regard because it deals with only (3) deciding whether (4).

Answer 27

1. outward sign 2. meeting of the minds 3. one party 4. the other made an offer

Question 28

A contract begins with an agreement, which requires (1) based in (2) and (3). Each party must intend to (4) and must do so on (5) terms.

Answer 28

1. mutual assent 2. offer 3. acceptance 4. enter the contract 5. mutually acceptable

Question 29

A court will always try to (1) a contract--this is (2) driven!

Answer 29

1. enforce | 2. economically

Question 30

Conclusion of Raffles v. Wickenhouse (Oct./Dec. ship example)

Answer 30

No mutual assent, not meeting of the minds = not contract. Parties were not thinking the same thing.

Question 31

Conclusion of Akin-Gump (resume with $200k placement fee tersm, sent to wrong place, unsolicited, etc.)

Answer 31

No meeting of minds = no contract

Question 32

(1) of words or actions between parties is all courts have to decide on whether an agreement existed. Each party must act in a way as to (2).

Answer 32

1. Manifestation | 2. lead the other party to reasponably believe an agreement has been reached

Question 33

The objective standard of courts in determining a contract agreement is the (1) and whether he would say mutual assent existed. Under this, the courts enforce (2)--not necessarily (3)--intent.

Answer 33

1. Ordinary, Reasonable, Prudent person (ORP) 2. apparent 3. real

Question 34

The conclusion of Leonard v. Pepsico (re: advertised Harrier jet)

Answer 34

offer made in jest; not reasonable

Question 35

As soon as (1) is reached, there is a contract--even if no formal contract has yet been drawn. The two criteria for this are (2) and (3).

Answer 35

1. mutual assent 2. intent to enter into a bargain 3. definiteness of terms

Question 36

Conclusion of Tool & Dye example (letter of intent = contract?)

Answer 36

1. Definiteness of terms, no statement that a contract would be drawn up later --> nothing further coulrt make it a contract, so it was a contract

Question 37

An offer is a manifestation of a (1) to enter into an agreement--a (2)--made in such a manner so as to give reason for another person to understand that (3) to the agreemnent is (4) and, if given, will (5) the agreement.

Answer 37

1. current willingness 2. bargain 3. approval 4. invited 5. conclude

Question 38

5 rules of an offer

Answer 38

1. must be communicated to the person/persons to whom it is addressed (cannot take effect unless known by offeree--reward example) 2. must indicate a desire to enter into a contract 3. must be directed at some person or group of persons (defined or undefined)(ads are not offers!) 4. must invite acceptance. Offeror can stipulate terms of acceptance (reaosnable, timely) 5. must create reasonable understanding that upon acceptance, a contract will arise without further approval or action on the part of the offeror

Question 39

An add is NOT an (1)--it is an (2). This can change if the (3) is identified and if there are more (4).

Answer 39

1. offer 2. offer to negotiate 3. offeree 4. definite terms

Question 40

4 things that look like offers but may not be

Answer 40

1. offer made in jest 2. auctions (solicitations for bids)(exceptions, though!) 3. negotiations 4. price quotes (how much would you take?)

Question 41

An auction is not an (1)--it is a (2); UNLESS it is said to be "(3)," the auctioneed may withdraw the item at any time prior to (4). (5) can also be withdrawn.

Answer 41

1. offer 2. solicitation for bids 3. without reserve 4. bid-taking 5. Bids

Question 42

Negotiations are not (1)--they are (2). Offers, by contrast, must be (3).

Answer 42

1. offers 2. statements of future intentions 3. present intent

Question 43

Parties must agree on which four major and essential terms to a contract?

Answer 43

1. parties to the contract 2. subject matter of the contract 3. time for performance 4. price (including quantity)

Question 44

Once rejected (including by (1)), an offer cannot be reinstated by the (2). An offer is also cancelled by (3)--a contract must be in place (4) to be valid by, e.g., "estate"

Answer 44

1. counteroffer 2. offeree 3. death of the offeror 4. before death

Question 45

Acceptance is the offeree's (1) to the terms of the offer made in a manner (2) or (3) by the offeror. The (4) standard applies here, too!

Answer 45

1. manifesation of assent 2. invited 3. required 4. objective standard (ORP person)

Question 46

An offer may be accepted only by a person in whom the (1) intended to create the (2). The offeror is the (3) of their offer and can prescribe the (4)

Answer 46

1. offeror 2. power of acceptance 3. master 4. method of acceptance

Question 47

By common law, (1) is not possible, with a few exceptions.

Answer 47

1. acceptance by silence

Question 48

Exception to "acceptance by silence" being invalid--silence when a service is (1). Person will be owed (2)--the amount it cost the person to do the service. Prevents (3). This is a (4), because it is not based on, for example, history, so it is not an implied contract.

Answer 48

1. knowingly performed 2. quantum meruit 3. unjust enrichment 4. quasi-contract

Question 49

Creating exceptions to the "acceptance by silence" rule is a (1) determination! One example is the cake class one, which held up because the person (2) while having an (3).

Answer 49

1. subjective 2. accepted the offer 3. opportunity to reject it

Question 50

By the (1), acceptance must match the offer--the slightest deviation is a (2)! One thing that comes to mind is (3) because the computer is the agent in these transactions.

Answer 50

1. mirror image rule 2. counteroffer 3. E-commerce

Question 51

By the (1), in the absence of (2), acceptance occurs as soon as it is (3). For an email this would be as soon as the person (4).

Answer 51

1. mailbox rule 2. specification 3. out of the offeree's possession 4. hits send