FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Agreement

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Business Properties, Inc. (BPI) , offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

A) creates an illegal contract by adding a clause to BPI's offer.
B) makes the offer irrevocable for three days if BPI accepts.
C) negates BPI's offer by changing the price term.
D) voidsBPI's offer by extending the time term.

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time.

On May 1 Noah offers to sell Ole a pig. On May 3Noah mails Ole a letter revoking the offer. Ole receives the letter on May 5 and responds on May 6. Noah's revocation of the offer to sell the pig became effective on

Global Dispatch Corporation and Heavy Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is

Interstate Coffee Brokers, Inc., offers to buy Java Roasters Company coffee-roasting services for a certain price. Java responds that the price is too low and thereby rejects the offer. The offer is

Idina admires July's collection of guitars. July says, "I plan to sell the collection when I get tired of it." July's statement is​

May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick’s Pre-owned Autos, hands May $10. This is

An acceptance can materially change or add to the terms of the original offer without rejecting it.

Barney offers to sell his Call Marketing Center business to Domino for $100,000. Domino replies, "The price is too high. I will offer to buy it for $90,000." Domino has

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate.

An acceptance must be unequivocal.

An offer terminates automatically when the time specified in the offer has passed.

Wally offers to sell a certain used forklift to Valu Lumber Outlet, but Wally dies before Valu ac-cepts. Most likely, Wally's death

The mailbox rule applies to communication by phone as well as by mail.

In a bilateral contract, communication of acceptance is necessary.

An agreement is evidenced by one event: an offer.

A preliminary agreement cannot constitute a binding contract.

Revocation is effective on dispatch.