ADMS 2610 Final: Final Exam Notes

Choose a, b, c or d.

1. For a communication to be an offer,

a. It must be addressed to one or more specific persons.

b. It must describe the goods and state or provide a means for determining their quantity.

c. It must state or provide a means for determining the price.

d. Both a and b above

2. For an offer to be irrevocable (i.e, to make it a "firm offer"),

a. The offeror must state or imply that the offer is irrevocable

b. The offer must be in writing

c. the offer must be signed

d. All of the above

e. Both b and c above

3. An offer can be made irrevocable (i.e, made a "firm offer") if:

a. It is made by a merchant

b. it is in writing signed by the offeror

c. it is limited in time to no more than 3 months

d. All of the above

e. Both a and b above

4. An offeree may withdraw his acceptance of an offer:

a. any time before it is dispatched

b. any time before it is received

c. simultaneous with its receipt

d. all of the above are true

e. both a and b are true

5. Delta Co. in State D sent an offer by email to Echo Co. in State E on 1st Jan.

On 10th Jan, Echo Co. mailed back a rejection.

On 11th Jan, Echo Co. changed its mind and sent an acceptance in the mail.

On 22nd Jan, the acceptance was received.

On 23 Jan the rejection was received. There was:

a. No contract because the rejection was effective on its dispatch on 10 Jan

b. A contract because the acceptance was effective on its dispatch on 11 Jan

c. A contract because the acceptance was effective on its receipt on 22 Jan

d. No contract because the rejection was effective on its receipt on 23 Jan

e. None of the above

1. An offer is a proposal by an offeror that, if accepted, will create a contract. Offers require that the offeror make a promise. The promise can be express or implied. The offer must bargain for a return promise, an act, or forbearance, and it must describe what is being offered (the subject matter) with enough certainty so that a court will not have to guess at what the offeror intended. The offer must be communicated to the offeree, and it must be proven that the offeror manifested the intent to make an offer. How would an offeree prove that an offeror intended to make an offer if the offeror alleged that she was only kidding or that her proposal was merely an invitation to the other party to make an offer?

2. Offerors have the legal right to revoke their offers if they effectively do so before the offeree accepts. There are, however, several circumstances that would preclude the offeror from revoking the offer. Please identify these circumstances and give an example of each.

TRUE or FALSE

1.The UCC requires application of the "mirror image" rule in cases where contracts for the sale of goods are made by exchanging forms.

2.A contract generally comes into existence and becomes binding at the moment the parties have reached an agreement on all material provisions, although they may intend to later write down the terms of the agreement.

3.An acceptance must be in writing.

4.If an authorized means of acceptance is expressly present, any attempt by the offeror to accept by a non-authorized means is effective upon dispatch.

5.A bilateral contract is a promise for a promise.

6. If one or both parties to a form contract are non-merchants, the additional terms proposed by one of the parties are treated as:

7. Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms, when the acceptance form has terms additional to or different from the offer: