Contracts 6 / 3

26 Questions | Total Attempts: 42

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Contracts 6 / 3

Mutual Assent - Offer and Acceptance


Questions and Answers
  • 1. 
    A owned a $15 harness that was stolen from him. While in a state of wrath and in a boastful and blustering manner, A in the presence of a crowd, including P, promised to pay $100 to anyone who recovered the harness. P finds and returns the harness and sues for the reward. P, in fact, believed that A was serious, but a reasonable person in P's position would conclude otherwise. P cannot recover.
    • A. 

      TRUE

    • B. 

      FALSE

  • 2. 
    P was in the business of manufacturing automobile parts. P's customers were major auto manufacturers. P wished to sell to other buyers such as Midas Muffler but believed that this would displease the auto manufacturers. To achieve secrecy,P set up a subsidiary to distribute its products. P and E, a trusted employee, signed a document which stated that E had bought the business of the subsidiary for $250,000. It was orally agreed between the parties that, despite the agreement, E was acting as an agent of P. E sues on the written agreement to compel P to transfer the business. E may not recover.
    • A. 

      TRUE

    • B. 

      FALSE

  • 3. 
    Mrs. Stewart conceived at the age of 37. After two previous stillbirths, she was convinced that she could not have a normal delivery. Consequently, when she and her husband consulted with' D, a doctor, they demanded that a Caesarean section be performed.  D agreed. D's medical opinion was that a Caesarean would not be necessary, and so D later refused to perform a Caesarean when Mrs. Stewart had labor pains. The birth was stillborn. Mrs. Stewart does not have a cause of action for breach of contract against D.
    • A. 

      TRUE

    • B. 

      FALSE

  • 4. 
    The Chicago Tribune, a daily newspaper, publishes a booklet called "General Advertising Rates," which lists its charges for advertisements, and another booklet called "The Chicago Tribune Advertising Guide" which indicates that the Tribune will refuse advertising which is dishonest, indecent or illegal. P, a labor union, tendered to the Tribune an advertisement urging readers not to patronize a certain department store because of its policy of featuring imported clothing made by low wage foreign labor. It was conceded that the tendered advertisement was not dishonest, indecent or illegal. The union also tendered sufficient funds to pay for the advertisements in accordance with the "General Advertising Rates." The Tribune refused to print the advertisement. P has a cause of action for breach of contract against the Tribune.
    • A. 

      TRUE

    • B. 

      FALSE

  • 5. 
    D caused circulars to be distributed to dealers throughout the country announcing that an auction would be conducted without reserve of the famous Smith collection of antiques. P flew from California to New York, the announced site of the auction. On arrival P discovered that the auction had been canceled because of a recession in the antiques market. P does not have an action for breach of contract against D.
    • A. 

      TRUE

    • B. 

      FALSE

  • 6. 
    P asked D whether D would consider selling certain property. D stated that, if P made an offer,D would consider it. P named a sum and D refused. P then stated, "Will you accept $49,0007/1 D answered "I will not sell it for less than $56,000./1 P said, "I accept." There was a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 7. 
    A offered a $100 reward to anyone who finds and returns A's lost watch. B never learned of the reward offer but returned the watch knowing it belonged to A because of engraved material on the back.  B may not recover for the sole reason that B was legally bound to return the watch.
    • A. 

      TRUE

    • B. 

      FALSE

  • 8. 
    In the above question, assume that B knew of the offer before B found and returned the watch and that Bhad no legal duty to return the watch.  Assume further that when B returned the watch, B did not mention the reward. Boffers testimony that Bintended to accept and did not say anything about the reward because of embarrassment. As a matter of law, B may not recover the reward.
    • A. 

      TRUE

    • B. 

      FALSE

  • 9. 
    A, a newspaper, requests B to discontinue publication of a rival newspaper, and offers to pay $100 per week as long as B abstains from such publication. One must conclude that A had made an offer looking to a series of contracts.
    • A. 

      TRUE

    • B. 

      FALSE

  • 10. 
    A the owner of an unimproved piece of realty, spent the summer in Europe. When A returned there was a beautiful house where the empty lot had been. As A was about to enter, B informed A that B had caused the structure to be built and that, if A used the house, A would be contractually obligated to pay for it. B is correct.
    • A. 

      TRUE

    • B. 

      FALSE

  • 11. 
    A was seriously injured in an accident. B, a doctor, came on the scene and treated A while A was unconscious. B is entitled to a contractual recovery from A.
    • A. 

      TRUE

    • B. 

      FALSE

  • 12. 
     A invited a number of brokers to submit proposals for fire and theft insurance. Later, on A's request, B, one of the brokers, revised the bid several times. A then awarded the contract to another. Bsues to recover the cost incurred in preparing the bid and its various revisions. B may recover.
    • A. 

      TRUE

    • B. 

      FALSE

    • C. 

      DEPENDS

  • 13. 
    Under a claim of right made in error but in good faith, A digs a well on B's unused land and takes water therefrom which has no market value and no value to B, doing no injury to the value of the land. B notifies A that B will charge $500 a day for every day on which A takes water from the land. If A takes water, A is bound to pay $500 per day.
    • A. 

      TRUE

    • B. 

      FALSE

  • 14. 
    A sends an offer by mail to B,who promptly sends what amounts to a counter-offer the next day. This letter is lost. The following day, B at 2:00PM. sends a letter of acceptance which was also lost. On the same day, at 1:00 P.M., A hands a notice of revocation to an independent messenger service which. This notice is hand delivered to B at 5:00 PM. Under the majority view there is a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 15. 
    A sent to B an offer to sell certain realty stating all material terms and added, "this offer is not subject to revocation for thirty days." B immediately rejected the offer, and A then stated that A withdrew the offer. At this point the offer had been effectively terminated.
    • A. 

      TRUE

    • B. 

      FALSE

  • 16. 
    A sends a telegraphic offer to sell oil at a fixed price which at the time is subject to rapid fluctuations in price. The offer is received near the close of business hours, and a telegraphic acceptance is sent the next day after the offeree has learned of a sharp price rise. There is a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 17. 
    0 offered a reward of $200 for information leading to the conviction of the person who set a specific fire. Three years and two months later, the culprit was convicted as a result of information supplied by P three months before the trial. P may not recover because the offer has lapsed.
    • A. 

      TRUE

    • B. 

      FALSE

  • 18. 
    A makes an offer to Bsaying that it is to remain open for two weeks but is to end at once if A's factory is destroyed by fire. If the factory burns down two days later and Baccepts the next day, not knowing that the factory burned down, there is a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 19. 
    A in a telephone conversation makes an offer to Bto which B did not reply. After the conversation ends, B sends a letter of acceptance. There is no contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 20. 
    A made an offer to B looking to a series of unilateral contracts pursuant to which A guarantied payment of the B's deliveries of building supplies to Apex Construction Co. After B made the first delivery, A was adjudicated an incompetent and a guardian of A's property was appointed. B had no knowledge of this fact and continued to make deliveries. Under the majority view, B may recover contractually for all deliveries.
    • A. 

      TRUE

    • B. 

      FALSE

  • 21. 
    A, a newspaper, publishes an offer of prizes to persons who procure the largest number of subscriptions as evidenced by cash or checks received by a specified time. B completes and mails an entry blank giving B's name and address, which is received by A. Thereafter during the contest, A publishes a notice that personal checks will not be counted. B does not see the notice. Assume that the offer continued to be revocable. B is bound by the notice.
    • A. 

      TRUE

    • B. 

      FALSE

  • 22. 
    A makes an offer to B to sell Bleak House for $100,000.B, at A's request, pays A $100to keep the offer open for one week. Two days later, B tells A that B will purchase but at a price of $85,000.  A declines. The next day B manifests an intent to buy at the original price and tenders $100,000. Under the modern view, there is a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 23. 
    A makes a written and signed offer to sell goods to B which states,  "This offer is for one week." The letter was dated and sent on Jan. 2. It was received on Jan. 3. B sent a letter of acceptance on Jan. 9. This letter was received on Jan. 12. There is a contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 24. 
    A, a manufacturer, agrees to sell to B, a retailer, 5,000 widgets. A's offer stated prices which varied according to the size of the widgets.  B accepted. Before anything else happened, A "withdrew the offer." There is no contract.
    • A. 

      TRUE

    • B. 

      FALSE

  • 25. 
    A and B enter into an employment arrangement for a period of one year. They agree that the salary to be paid should be determined by them "in a cooperative effort" at the end of each month. There is no contract.
    • A. 

      TRUE

    • B. 

      FALSE

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