TJ_Comp 20_TB_Ch13

TJ_Comp 20_TB_Ch13 - Chapter 13FORMATION OF CONTRACTS OFFER...

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Chapter 13—FORMATION OF CONTRACTS: OFFER AND ACCEPTANCE TRUE/FALSE 1. To create an offer, an offeror must intend, or it must appear that the offeror intends, to be bound to a contractual relationship. ANS: T MSC: AACSB Analytic 2. Generally, advertisements, catalog prices, and circulars are offers that can be accepted. ANS: F MSC: AACSB Analytic 3. Social invitations can be offers. ANS: F MSC: AACSB Analytic 4. The bid of each contractor for a job is considered an offer. ANS: T MSC: AACSB Analytic 5. If an offer is indefinite or vague, an attempted acceptance will not form a contract. ANS: T MSC: AACSB Analytic 6. A court will do its best to find the intent of parties to an agreement provided that the agreement is not too indefinite ANS: T MSC: AACSB Analytic 7. A vague contract may be clarified by references in the contract to other documents or agreements. ANS: T MSC: AACSB Analytic 8. An agreement cannot be enforced if it does not set forth every detail. ANS: F MSC: AACSB Analytic 9. Contract terms may not be implied from conduct. ANS: F MSC: AACSB Analytic 10. A term of a written contract that is too vague to have a definite meaning sometimes may be ignored. ANS: T MSC: AACSB Analytic 11. An agreement is not too indefinite to be binding if a standard or formula is provided by which variable factors can be determined. ANS: T MSC: AACSB Analytic
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A contract to buy all the buyer's requirements from the seller at a stated price is too vague to be a con- tract. ANS: F MSC: AACSB Analytic 13. A person returning lost property without knowing that a reward was offered cannot sue the owner for the reward. ANS: T MSC: AACSB Analytic 14. An offer is effective only if it is communicated by the offeror in person. ANS: F MSC: AACSB Analytic 15. An offer gives the offeror the power to bind the offeree by contract. ANS: F MSC: AACSB Analytic 16. A revocation of an offer ordinarily is effective only when it is made known to the offeree. ANS: T MSC: AACSB Analytic 17. Offers, acceptances of offers, and revocations of offers are all effective when mailed in a properly ad- dressed envelope bearing the proper amount of postage. ANS: F MSC: AACSB Analytic 18. Revocations are effective when they are received by the offeree. ANS: T MSC: AACSB Analytic 19. An option is itself a contract to refrain from revoking an offer. ANS: T MSC: AACSB Analytic 20. A firm offer cannot be revoked. ANS: T MSC: AACSB Analytic 21. Counteroffers are limited to offers that directly contradict the original offer. ANS: F MSC: AACSB Analytic 22. If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land. ANS: F MSC: AACSB Analytic 23. If an offer does not state how long it shall remain open, it remains open for ten days. ANS: F
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch13 - Chapter 13FORMATION OF CONTRACTS OFFER...

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