contracts practice q's

What is a contract?

A legally binding agreement.

The common law governs transactions involving:

Services, land, and anything else that is not the sale of goods.

UCC Article 2 governs:

Sales of goods.

Under UCC Article 2, a sale is:

Title passing from seller to buyer for a price.

Goods under UCC Article 2 are:

Movable things.

How is a common law contract formed?

Mutual assent and consideration.

Who controls the offer?

The offeror.

What is the typical way that parties manifest assent?

Offer and acceptance.

What happens if one party makes an offer and the other party accepts it?

Mutual assent.

What is the effect of a counteroffer on the original offer?

Rejection of the original offer.

What happens if one party makes an offer and the other party neither accepts nor rejects it?

Offer expires after a reasonable time or offer expires on day offeror specifies.

A communication is an offer instead of just negotiations if it’s:

Definite and has reasonably certain terms.

An offer is “definite” if it:

Expresses commitment.

An offer has reasonably certain terms if:

A court can determine breach and a remedy.

Advertisements generally are:

Invitations to make an offer.

True or false: every agreement is a contract

False.

An offer gives the offeree:

Power of acceptance.

An offeree can accept an offer:

In the manner specified in the offer or in any reasonable manner if offer does not specify manner.

How does rejection affect the power of acceptance?

Terminates it.

When the offereee says yes but changes a term in the offer, it’s:

Both rejection and counteroffer

An offer expires:

After a reasonable period of time if offer does not specify a time.