chapter12

A contract is formed only if the parties had a __ of the minds.

Meeting

An __ is an act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms.

Offer

An __ is an unconditional agreement to the terms of the offer.

Acceptance

The person who makes an offer is called the __.

Offeror

The person to whom an offer is made is called the __.

Offeree

Courts make __ assessments when evaluating offers and acceptances.

Objective

Invitations to bargain, price quotes, and advertisements are usually not considered __.

Offers

A letter of intent may sometimes be treated as a __.

Contract

An advertisement is generally a request for __.

Offers

When an auction is held “without reserve,” there is no __ sales price.

Minimum

The terms of an offer must be __ for it to be valid.

Definite

Article 2 of the __ governs contracts for the sale of goods.

Uniform Commercial Code (UCC)

A __ contract obligates the seller to sell all of his output to the buyer.

Output

A __ contract obligates a buyer to obtain all needed goods from one seller.

Requirements

Under the UCC, both parties to a contract must act in __.

Good faith

An offer is revoked when the offeror __ it before acceptance.

Takes back

A __ contract makes an offer temporarily irrevocable because the buyer pays to hold the offer open.

Option

A UCC firm offer may not be revoked if it is signed by a merchant and is held open for no more than __ months.

Three

A __ is a different proposal made in response to an original offer and acts as a rejection.

Counteroffer

If an offeror dies or becomes mentally incapacitated, the offer is terminated by __.

Operation of law

The mirror image rule requires acceptance to be on __ the same terms as the offer.

Precisely

Under the UCC, the “battle of the forms” allows contracts to include or terms.

Additional / Different

A clickwrap or browsewrap is an example of a(n) __ agreement.

Online (wrap)

If an offer specifies a particular method or manner of acceptance, the offeree must __ those requirements.

Follow

The __ rule states that acceptance is effective upon dispatch.

Mailbox

A car dealership advertises, “First 10 customers tomorrow get 50% off any car.” Is this an offer or an invitation to negotiate?

Invitation to negotiate

John emails a job offer to Sarah, but before she responds, he sends another email revoking it. She accepts after receiving the revocation. Is there a contract?

No

A company offers to sell 500 laptops for $1000 each. The buyer replies, “I accept, but only if you include free shipping.” Has a contract been formed?

No

A merchant signs a written agreement to keep an offer open for two months. Can they revoke it within that time?

No

A buyer sends an order form with new terms that do not materially change the offer. Both parties are merchants. What happens to the additional terms?

They become part of the contract

A student buys a phone online and clicks “I agree” to the website’s terms. What kind of agreement is this?

Clickwrap agreement

A store burns down before the seller can accept a buyer’s offer to purchase it. What happens to the offer?

It terminates

If a buyer mails an acceptance letter on Monday and the seller revokes the offer on Tuesday, which is effective?

The acceptance

A contractor promises to buy all lumber he needs from one supplier for a year. What kind of contract is this?

Requirements contract

A factory promises to sell all steel it produces to a single buyer. What kind of contract is this?

Output contra