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108 Cards in this Set
- Front
- Back
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OFFER
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An offer is a manifestation of contractual intent communicated to an identified offeree with definiteness and certainty of terms.
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ACCEPTANCE
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Acceptance is the unequivocable assent to the terms and conditions of the offer communicated to the offeror by the identified offeree in an authorized manner.
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A says to B, "I have decided to sell my car for $16,000." B replies that he will buy it at that price. Has a contract been formed?
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NO - A's statement is not the communication of an offer. It lacks evidence of a present manifestation of contractual intent to enter a contract.
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In the course of a television interview, Sniveling Little Rat Face Git stated, "I'm always having problems with my personality. I'd give a thousand dollars for the secret of being cool!" Elmer wrote Sniveling a letter stating, "The secret of being cool is to change your name. You owe me $1,000." Is Elmer entitled to the $1,000?
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No If a reasonable person would have realized that Sniveling's offer was made in jest, there is no contract, even if Elmer took her seriously
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A telephoned B Co., with whom she maintained an account, and ordered 5 pounds of caviar for a dinner party. No mention was made of price. B billed A $1000 per pound, which was the regular posted price of caviar at the store. A refuses to pay B, claiming that she could have purchased the same amount of this caviar elsewhere for $3000. Is she contractually bound to pay the full $5000?
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YES - A contract may be "implied in fact" from the conduct of the parties. By telephoning an order without mentioning price, A impliedly agreed to pay B's price, unless it is manifestly unreasonable.
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A contracted to furnish maid services to B's offices for one year at a set price. At the end of the one year period, he continued his services, and this went on for three years. B paid the contract price for the first two years but now refuses to pay for the last year. Is B bound to pay the contract price?
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YES B's acceptance is implied from his conduct by permitting A to continue and by paying the contract rate for the first two years.
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A was seriously injured in an accident. While she was unconscious, bystanders summoned Dr. Death, who performed a delicate operation on A. Is A obligated to pay the bill tendered by Dr. Death?
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NO - A was unconscious and did not expressly or impliedly agree to anything. Death can still recover from A in quasi-contract, a contract implied in law to prevent unjust enrichment. In quasi-contract, only the reasonable value of the services is recoverable. This might be less than the amount tendered by Dr. Death.
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An agreement provides that "each party is to make a fair profit." Will the court uphold the agreement by determining what would be a "fair" profit to each?
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NO This is too indefinite for a court to use as the basis for a present contract. Under the UCC, in contracts for the sale of goods, the parties can leave the determination of the price to be fixed by a third party, by some certain event, by trade journal quotation, or they may leave it to future agreement.
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D promises to repay a loan as soon as he is able. Is this promise sufficiently certain to be enforced?
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YES The court can objectively determine the matter of the debtor's "ability."
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A offers to purchase a rare painting from D. D accepts, but no price is mentioned. Is there a contract?
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NO This is missing a manifestation of agreement on the essential term of price.
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A offers to purchase from B, at $50 per ton, all the ice cream that B can produce in his new manufacturing plant. B accepts. Is there a contract?
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YES The essential quantity term is measured by the seller's output. Under the UCC, this creates a present contract under the rules of output contracts.
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A writes B, "I am eager to sell my house. I would consider $300,000 cash." B replies, "You've got a deal!"
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NO A's words suggest an invitation to B to make an offer. B's purported acceptance is actually the offer.
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Clothing Store advertises that a well-known brand of mink coat is "regularly priced at $4200, today only $1500." Golddigger comes to the store in response to the ad, selects a mink, and tenders $1500.
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NO Advertisements to the public are generally held to be invitations for an offer, on the grounds that the advertiser has not committed itself to an unlimited quantity of the goods.
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A sends B a "letter agreement" for certain construction work that states, "formal contract to follow." B writes, "accepted" across the letter agreement, signs it, and returns it to A.
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NO This will probably fail as a contract for lack of definiteness. If both parties intend to be bound only by the written contract, the "letter agreement" would be deemed preliminary. Otherwise, it will be enforceable, but there is no indication of the parties' intent.
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Merchant P writes to Merchant D, "Dear D, I can quote you wine at $20 a barrel in carload lots for immediate acceptance." D writes, "Send three carloads".
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"YES Quoting prices is commonly understood only as inviting an offer. However, because it was directed to a specific person, and A added the words ""for immediate acceptance"", this is a manifestation of contractual intent.
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A advertises in the newspaper that he will be auctioning off all of his household goods at a specified time and place. Is A bound to proceed with auction? If A feels that the bids are too low, can he withdraw the goods?
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"NO The advertisement of an auction is an invitation for offers, and is not in itself an offer. YES Unless property is put up for sale ""without reserve"", the auction is deemed to be ""with reserve"". This permits the seller to withdraw the goods at any time before acceptance.
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An offeror may revoke his offer for a unilateral contract at any time until the offeree has completed the requested act of performance.
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"NO Once the offeree has begun actual performance of the requested act, the offeror's power of revocation is stayed for a reasonable period.
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In most jurisdictions, a rejection is effective upon its receipt by the offeror.
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"YES.
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The existence of mutual assent is determined by what the parties subjectively intended.
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"NO The proper test of mutual assent is what a reasonable person in the position of the parties would have understood the words or conduct to mean.
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An implied contract is enforceable.
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"YES Even though implied, the mutual assent is real, so the contract is enforceable.
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D accepts P's offer to sell his house. D does not know that P owns two houses. Has a contract been formed? If so which house is the subject of the contract?
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YES There is a binding contract for the sale of that house which D knew O owned. O uses a term that he knows is patently ambiguous. D is not chargeable and does not know of O's knowledge, and therefore credence is given to D's construction of the term.
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O offers to sell a diamond to B for $200, not knowing that it is actually worth $1,000. B accepts with knowledge of its true value. Can B enforce the contract?
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YES There is a unilateral error as to the value. A mistake of judgment generally does not prevent the formation of a contract between parties, even if the other party is of the opinion that the offeror is mistaken in his judgment.
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A offers to sell to B a car for $5,000. Assume that B replies, "I will pay you $4,800 for the car". Later that day, B says, "OK, I'll pay the $5,000," but A now refuses to sell. Is there a contract?
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B's $4,800 counteroffer terminated the power of acceptance.
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A offers to sell to B a car for $5,000. Assume that B's first reply was, "Will you accept $4,800?" Would B's subsequent acceptance of the $5,000 offer form a contract?
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YES B's question is an inquiry. A's offer would therefore still be open, and B's acceptance would create a contract.
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B mailed a rejection to A, but later the same day B changed her mind and telegraphed an acceptance to A. The acceptance was received by A prior to the rejection. Is there a contract?
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"YES In such event, acceptance is effective only on receipt. Because A in fact received the acceptance prior to the rejection, a contract was formed. If A regards the later-arriving rejection as a repudiation of the acceptance, and relies on it, B will be estopped from enforcing the contract.
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Suppose that B had mailed an acceptance to A, but later that day changed her mind and telegraphed a rejection, and the rejection was received by A prior to the acceptance. Is there a contract?
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"YES The contract was formed upon the dispatch of the acceptance, although A learned of the rejection first. If A had relied on the rejection and contracted to sell the property to C, B would be estopped to assert the contract.
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A mails an order to B for services. B replies: "Order acknowledged and will receive our attention; will advise shortly." Is there a contract?
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"NO To be effective, an acceptance must be unequivocal.
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A mails an order to B for services. B replies: "Order acknowledged and will receive our attention; will advise shortly." Two days later, B writes A "accepting" the order, but states that services cannot be provided for eight weeks. Is there a contract?
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NO An acceptance must be a mirror image of the offer. As A's order did not specify time for provision of services, the law will imply a term of reasonableness. If eight weeks is reasonable, the variance in the acceptance would not prevent the formation of a contract.
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An implied-in-fact contract is also called a quasi-contract.
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NO A quasi-contract is one implied in law in order to prevent unjust enrichment.
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To be valid, an offer must manifest an intent to be presently bound by a contract.
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"YES.
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An offer that can be accepted by performance of an act is an offer for a bilateral contract.
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"NO This is the basic definition of a unilateral contract.
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An offer for a unilateral contract may be revoked at any time until performance by the offeree begins.
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"YES An option contract is created when the invited performance begins and is held open for a reasonable period of time necessary for completion.
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An offeror's revocation of the offer is effective only upon dispatch by the offeror?
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NO It is effective upon receipt by the offeree
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A telegraphs an offer to B to sell cheese at 22 cents per pound. However, the telegraph company errs in the transmittal, and the wire reads 20 cents per pound. B accepts. Is there a contract?
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"YES If the difference of 2 cents per pound is not something that B knew or should have known, there is a contract.
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The general rule is that an offer may be accepted only by the person to whom it is made.
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YES
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On December 1, A wrote to B offering to sell her house for $240,000. The letter stated that the offer would remain in effect for only five days. Assume that B received the letter on December 3, and sent an acceptance letter on December 7. Has a contract been formed?
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YES The period open for effective acceptance commences to run on the date of actual receipt of the offer or on the date on which it would normally be received. The offer was received on December 3, and there does not appear to be an unreasonable delay in the transmission. The five day acceptance period would commence to run on December 3. The acceptance was dispatched within five days, and contract was formed.
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On December 1, A wrote to B offering to sell her house for $240,000. The letter stated that the offer would remain in effect for only five days. Assume that the house was destroyed by fire on December 6th, and B sent her acceptance letter the next day, unaware of this fact. Is there a contract?
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NO Destruction of the subject matter prior to acceptance terminates the offer.
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On December 1, A wrote to B offering to sell her house for $240,000. The letter stated that the offer would remain in effect for only five days. Assume that A telephoned B on the December 5th, saying, "I revoke my offer". If B immediately delivered a written acceptance, is there a contract?
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"NO Offers are revocable even if there is an express promise not to revoke. The revocation must be communicated to the offeree, and becomes effective upon receipt. A learned of the revocation prior to dispatch of the acceptance, so there is no contract.
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On December 1, A wrote to B offering to sell her house for $240,000. The letter stated that the offer would remain in effect for only five days. Assume that on the 5th, A and B signed a memo in which A agreed to keep the offer open until the 10th, if B paid $100. On the 8th, A telegraphed B and revoked the offer. Can B accept the offer on the 9th?
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"YES If the offeror receives consideration to keep the offer open, he cannot revoke during the stated period.
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On December 1, A wrote to B offering to sell her house for $240,000. The letter stated that the offer would remain in effect for only five days. Assume that on the 4th, with A's knowledge and approval, B had a termite report made on A's house. Can A still revoke her offer?
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NO An offeror may be estopped to revoke where the offeree has foreseeably and reasonably relied to his detriment on a promise to keep the offer open.
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F writes to D, who is living away from home, as follows: "If you'll come back home and take care of me for the rest of my life, I'll make you the sole beneficiary of my will. You don't need to promise, just come". If D gives up her career, moves back home, and starts to take care of F, can F later revoke his offer?
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"NO F's offer is for a unilateral contract. If the performance will take time to complete and the offeree has started performance, the offer cannot be revoked for the reasonable period of time that is necessary to complete performance.
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F writes to D, who is living away from home, as follows: "If you'll come back home and take care of me for the rest of my life, I'll make you the sole beneficiary of my will. You don't need to promise, just come". If D gives up her career, moves back home, and starts to take care of F, can F later revoke his offer? Assume that after a few years D tires of this arrangement, moves out, and leaves F alone. Is there a breach of contract?
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"NO D's caring for F was merely the start of her acceptance of his offer for a unilateral contract.
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Once the offeree rejects an offer she can later accept the offer provided that the time for acceptance has not expired.
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NO A rejection terminates the power of acceptance.
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When an offeree responds to an offer by making a counteroffer, the offeree can revoke the counteroffer and then accept the original offer.
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"NO A counteroffer has the same legal effect on the power of acceptance as does a rejection.
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If a merchant signs a written irrevocable offer to sell goods but does not state how long the offer is irrevocable, the offeree can accept within a reasonable time or within three months, whichever is later.
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"NO Under the UCC, a merchant's irrevocable offer will be kept irrevocable for the time stated. If no time is stated it must be kept open for a reasonable time, but not to exceed three months.
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A offers to employ B as an marketing manager for $10,000 per month. B accepts on the condition that her salary is payable weekly. Is there an enforceable contract?
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"NO B's qualification of her purported acceptance will be regarded as a rejection and counteroffer under the mirror image rule.
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A offers to sell his kiwi crop to food processor B for $5,000. B accepts provided that A makes the delivery to his plant. Is there a contract?
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"YES If delivery to the plant does not amount to a material shifting of the economic advantage or risk of loss proposed by the offer. This contract is governed by the UCC. (See UCC 2-207).
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D promises A that he will hold open his offer for 30 days. One week later, and before A has acted on the offer, D revokes the offer. Is the revocation effective? Would the result be the same if D and A were merchants dealing in goods?
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"YES At common law, in the absence of independent consideration the power of revocation is not destroyed by statements. Under UCC 2-205, this would be a ""merchant's firm offer"" and as such, it is effective for the stated period of 30 days without the necessity of showing any independent consideration.
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Under the UCC, a written irrevocable offer by a merchant cannot be revoked even if there is no consideration given for the irrevocability.
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YES
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Under the common law, an offer seeking acceptance by a promise cannot be accepted by an act.
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"YES Under common law this is true, but not under the UCC (See 2-206).
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An offer seeking acceptance by an act can be accepted by performance or by a promise.
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"NO An offer for a unilateral contract can be accepted only by performance, but not under the UCC (See 2-206).
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Acceptance of a bilateral contract binds the offeree as well as the offeror.
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YES
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Once the recipient of an offer for a unilateral contract begins performance, he must complete performance.
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"NO The offeree does not have to complete performance if he never promised to do so.
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May an offer be terminated by operation of law if the subject matter dies or is destroyed?
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YES Death or destruction of the subject matter of an offer that is still executory terminates the offer by operation of law.
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An attempt to revoke an executory offer made to the public is effective only if notice of the revocation comes to the actual attention of all those who have learned of the offer.
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"NO The revocation is effective if it is given the same or equivalent circulation as given to the making of the offer.
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At common law, a revocation of an offer is effective upon dispatch through a commercially reasonable mode of communication.
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"NO Revocation is effective upon receipt by the offeree.
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An offeree's power of acceptance terminates upon the death of the offeror if the offeree does not know of the death, but not upon the death of the offeror if the offeree does know of the death.
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"NO Death or incapacity of the offeror automatically terminates the power of acceptance. Knowledge of the death is not required.
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Under the common law an offer that does not specify an acceptance period expires within one year so it does not violate the Statue of Frauds.
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"NO If no time is stated, the offer expires after a reasonable period of time.
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An offeree may not accept an offer after he rejects it, even if the offer would have otherwise remained open.
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"YES However, under an option contract, the offer is not revocable for the time stated even if the offeree rejects it.
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An offer will continue to remain open after the offeree makes a counteroffer that the offeror rejects.
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"NO But not under an option contract.
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A revocation of an offer is not effective until it is received by the offeree.
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"YES This is a correct statement of the mail box rule.
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A posts a reward for the return of his dog. P reads the reward offer, searches for A's dog finds it, and returns it. Can P collect the reward money although he never notified A that he was going to accept the reward offer?
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"YES The offeree of a unilateral contract need not notify the offeror that he intends to perform or is performing the act.
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D writes to Scrooge, "If you will lend my brother, B, $1,000, I will guarantee its repayment." On receipt of this letter, Scrooge loans the money to B. If Scrooge fails to notify D that he has done so within a reasonable time, can Scrooge enforce D's guarantee?
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"NO Notice must be given within a reasonable time after performance is completed, unless the offeror has waived notice or the performance itself would come to the offeror's attention in reasonable course.
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If a purported offer does not include all the particulars of the deal, it is not a true offer.
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"NO An offer should include a description of the subject matter, a price, a quantity, and a time for performance. It does not have to include all contingencies.
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An advertisement is an offer.
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"NO An advertisement is an invitation to deal rather than an offer unless the advertisement states the quantity and identifies the offeree.
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When a dispute arises over the existence of a contract based on communications between the parties, the courts inquire into what the parties subjectively intended.
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"NO Courts determine what a reasonable person would have understood the communications to mean. This is the objective theory of contracts.
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An offer does not need a specified time and place for acceptance to be valid.
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YES These are not essential elements of an offer.
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If an auction is advertised as being without reserve, the auctioneer can reject all bids.
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"NO If an auction is without reserve, the auctioneer must accept all bids. Auctions with reserve, mean that the auctioneer does not have to accept any bids.
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A makes a written application for life insurance, pays the first premium, and is given a receipt stating that the insurance "shall take effect on approval of the application" at B's home office. B's home office approves the application the next day, but the day after, before notice of approval has been sent, A dies. Was A covered by the insurance policy?
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"YES In a bilateral contract situation, the offeree must use ""reasonable efforts"" to communicate the return promise unless the offer expressly dispenses with notice.
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An offer stays open until it is terminated.
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"YES Even if no time is stated, an offer always expires in a reasonable time.
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If the offer does not contain a termination date, it will expire after a reasonable time.
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NO There is no such requirement.
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The general rule is that silence is an acceptance of an offer.
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NO The offeror cannot impose upon the offeree the peril of having his silence treated as a binding acceptance.
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When it is unclear whether an offer calls for acceptance by a promise or by performance, it may be accepted by either means.
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YES This is true under the Second Restatement as well as under the UCC.
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A person may accept an offer by his or her conduct, even if this person does not say or write anything.
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"YES Conduct alone may constitute an implied-in-fact acceptance.
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Under the UCC, an acceptance that is expressly made to be conditional on the offeror's assent to additional or different terms is effective as to any of its terms that are not materially different or additional.
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"NO Such an acceptance is expressly excluded from UCC 2-207.
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When a consumer's acceptance under the UCC contains additional terms, these terms become part of the contract if they do not materially alter the contract.
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"NO Different terms are disregarded, and additional terms do not become part of a contract unless the contract is between merchants.
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Acceptance of an offer for a unilateral contract is complete when the offeree promises to perform the required act.
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"NO An offer that looks toward the formation of a true unilateral contract can be accepted only by the offeree's performance.
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An acceptance that is dispatched and received late is effective if the offeror receives no other acceptances.
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"NO A late acceptance may be ineffective as an acceptance, but it is effective as an offer that must be specifically rejected by the original offeror to prevent acceptance by silence.
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If an offeree sends both an acceptance and a rejection, under the mailbox rule the acceptance is effective upon dispatch provided that dispatch occurs before the rejection is received by the offeror.
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NO A rejection is effective upon receipt by the offeror. The mailbox rule does not apply if the rejection arrives before the acceptance. Once the offeror receives the acceptance, there is a contract regardless of the subsequent arrival of a rejection.
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Where the offer is for a bilateral contract, notice of acceptance is usually required in order to form a contract.
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"YES A bilateral agreement is formed by the exchange of promises; notice of the return promise is generally required.
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A leases one of his buildings to D under a profit sharing arrangement. The lease provides that it is terminable at will of A. Prior to signing the lease, D questioned A about this clause, and was assured that it would not be exercised provided that D's sales exceeded $50,000 per month. A is now attempting to terminate the lease, although D's sales are in excess of the figure stated. Is evidence of A's oral promise admissible under the parol evidence rule?
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"NO If the lease appeared on its face to be the final and complete integration of the parties' agreement, the parol evidence rule would bar evidence of prior inconsistent agreements, unless there is a showing of fraud; i.e., making the promise with no intent to perform.
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A leases one of his buildings to D under a profit sharing arrangement. The lease provides that it is terminable at will of A. Prior to signing the lease, D questioned A about this clause, and was assured that it would not be exercised provided that D's sales exceeded $50,000 per month. A is now attempting to terminate the lease, although D's sales are in excess of the figure stated. Assume that the lease provided that A could terminate only for good cause. Would A's oral promise to D be admissible?
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"YES To explain or interpret the term 'good cause'. Parol evidence is always admissible in the process of interpreting terms used in a written agreement.
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Under the UCC, as under common law, an acceptance that varies from the offer is invalid.
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"NO See UCC 2-207.
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Is acceptance of an offer for a bilateral contract effective only when it is received? Is the result the same under the UCC?
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"NO The effective date is only delayed until receipt by the offeror if acceptance is attempted by an ""unauthorized"" mode of communication. Under the UCC, acceptance is effective upon dispatch if the offeror utilized any mode commercially reasonable under the circumstances.
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Using an expressly authorized mode of communication, H mails an acceptance to offeror, B. On the same day, H changes his mind and telegraphs a rejection of the offer to B. Has a contract been formed between the parties if B receives the telegram of rejection before the acceptance?
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"YES Under a strict application of the common law rule, a contract was formed upon dispatch of the acceptance.
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A posts a reward for the return of his lost wallet. In the meantime, B has found the wallet and returns it to A, unaware of A's reward offer. If B later finds out about the reward, can B collect?
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"NO Even though B performed the act bargained for, he did not do so with the intent of accepting A's offer.
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When an offeree accepts a unilateral contract by beginning performance, the offeree is bound but the offeror is not.
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"NO The offeree is not required to complete performance, but the offeror is required to keep the offer open pending completion of the performance.
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An offer that does not clearly call for acceptance by a promise or by an act is construed as an offer for a bilateral contract.
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"NO The offer may be accepted by either a promise or an act. The Restatement 2nd and the UCC adopt this approach. Restatement 1st presumed such an offer to call for acceptance by a promise.
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Silence may constitute acceptance if the offer specifically states that silence will constitute acceptance
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"NO Silence may only constitute acceptance if some conduct or statement by the offeree indicates an intent to accept.
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A orders goods from B on specified terms and further states "Ship at once." - can it be accepted only by performance?
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NO. This is ambiguous and may be accepted by performance, or a promise to perform.
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A offers a reward of $150 for a lost dog. Can this be accepted only by performance?
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"YES. This is unambiguous and may be accepted only by performance.
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A says to B, "I'll pay you $20 cents to weed my lawn this afternoon." Can this be accepted only by performance?
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NO. This is ambiguous and may be accepted by performance, or a promise to perform.
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A says to B, "If you finish that table you are making and deliver it to my house today, I'll give you $200 for it. Can this be accepted only by performance?
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"NO. This is ambiguous and may be accepted by performance, or a promise to perform.
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A says to B, "If you finish that table you are making and deliver it to my house today, I'll give you $200 for it. Can this be accepted only by performance?
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"NO. This is ambiguous and may be accepted by performance, or a promise to perform.
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A sends an order for 1,000 12 inch arrows to B Manufacturing Co., with instructions to ship immediately. Suppose that B immediately ships the goods by common carrier. The next day, and before receipt of the arrows, A wires a revocation of his order. Is there a contract?
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"YES Under UCC Section 2-206, an offer to buy goods for prompt or current shipment can be accepted either by notice or by actual shipment.
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A sends an order for 1,000 12 inch arrows to B Manufacturing Co., with instructions to ship immediately. Suppose that B was out of 12 inch arrows, and hence shipped 11 1/2 inch arrows instead. Is there a contract at the time of shipment?
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"YES Shipment is an acceptance under section 2-206, even if the goods shipped are nonconforming.
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A sends B a letter stating, "I'm now ready to sell the house. Knowing that you want the house, I'll consider that we have a deal, unless I hear from you to the contrary." B makes no reply to this letter but does not wish to purchase the house at this time. Is there a contract?
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NO The mere fact that an offeror states that silence will constitute an acceptance does not deprive the offeree of the right to remain silent without acceptance.
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An offer for a unilateral contract may be accepted only by a written or verbal promise.
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"NO Acceptance may also be by an act. Such evidence of consent may imply a promise that constitutes acceptance.
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When an offeree begins to perform a contract calling for acceptance by either a promise or performance, he is bound but the offeror is not.
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"NO Both the offeree and the offeror are bound at this point.
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An acceptance of an offer to sell goods that contains additional terms is valid if the terms for the price and quantity of the goods are not changed
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"NO A contract for the sale of goods is governed by the UCC 2-207. If the acceptance definitely expresses an intent to accept, the inclusion of different terms does not render the acceptance ineffective.
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Between merchants, additional terms in an acceptance become part of a contract unless they materially alter it.
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"YES This also happens when the offer expressly limits acceptance to the terms of the offer, and when the offeror objects to the additional terms within a reasonable time.
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An acceptance is effective when it is dispatched if it is dispatched within a reasonable time, or before the offer expires or if it is dispatched in a proper manner, (even if this is not the manner that was suggested by the offer).
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"YES Unless the offer specifies a manner of communication, any reasonable manner of dispatch is effective. If the offer suggests a manner of communication that the offeree does not use, the acceptance is effective upon dispatch only if the acceptance actually arrives.
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A mails B an offer to lease B's car for $1,000 a month; the offer states "reply immediately". B immediately telegraphs acceptance, but the telegram is lost and never received by A. Is there a contract?
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YES The issue here is whether or not a telegraphed acceptance is an authorized means of accepting a mailed offer. If the offer fails to require any particular manner of communication, any commercially reasonable means is authorized.
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A mails B an offer to lease B's car for $1,000 a month; the offer states "reply immediately". Assume that B mailed the acceptance but accidentally misaddressed the envelope to A. As a result, it ended up in another city, but it eventually got to A's address after a reasonable period of time. Is there a contract?
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"NO If an acceptance is misaddressed or sent by unauthorized means, it is effective as an acceptance only if it arrives on time.
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A mails B an offer to sell him a vase for $2,000. Ignorant of A's offer, B mails A an offer to buy the same vase for the same amount. On receiving B's letter, A decides that the vase is worth more, and notifies B that he will not sell. Is there a contract?
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"NO An offer must be communicated to the offeree in order to create a power of acceptance. B's offer to A was not an acceptance of A's offer because it was made without any communication from A.
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Under the UCC, parties may have a contract based on conduct alone when the writings do not establish a contract.
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YES UCC 2-207.
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A promises to sell his car to B unless he changes his mind. Is this promise enforceable?
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"NO It is an illusory promise.
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A promises to buy goods only from B, but reserves an option to cancel by giving notice to B. Is A's promise to buy only from B a sufficient consideration to render enforceable B's counter-promise to sell to A?
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"YES Here the consideration is that B is to be an exclusive source of supply for the goods in question. A has given up his legal right to buy from anyone else.
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