BUL 3320 Chapter 10 Exam Questions
and Answers
implied authorization - ANSWER-mode of acceptance that is implied from what is
customary in similar transactions, usage of trade, or prior dealings between the
parties
implied term - ANSWER-a term in a contract which can reasonably be supplied by
the courts
invitation to make an offer - ANSWER-advertisements for the sale of goods, even at
specific prices, generally are treated as this
lapse of time - ANSWER-an offer terminates when a stated time period expires. if no
time is stated, an offer terminates after a reasonable time
mirror image rule - ANSWER-in order for there to be an acceptance, the offeree
must accept the terms as stated in the offer
mutual assent - ANSWER-an agreement required a meeting of the minds of the
parties (to perform current or future contractual duties)
objective theory of contracts - ANSWER-says the intent to contract is judged by the
reasonable person standard and not by the subjective intent of the parties
offer - ANSWER-the manifestation of willingness to enter into a bargain, so made as
to justify another person in understanding that his assent to that bargain is invited
and will conclude it (Section 24 of 2nd Restatement of Contracts)
offeree - ANSWER-the party to whom an offer to enter into a contract is made
offeror - ANSWER-the party who makes an offer to enter into a contract
option contract - ANSWER-an offeree can prevent the offeror from revoking his or
her offer by paying the offeror compensation to keep the offer open for an agreed
upon period of time
properly dispatched - ANSWER-an acceptance must be properly addressed,
packaged, and posted to fall within the mailbox rule
rejection - ANSWER-express words or conduct by the offeree that terminates an
offer
revocation - ANSWER-withdrawal of an offer by the offeror terminates the offer
and Answers
implied authorization - ANSWER-mode of acceptance that is implied from what is
customary in similar transactions, usage of trade, or prior dealings between the
parties
implied term - ANSWER-a term in a contract which can reasonably be supplied by
the courts
invitation to make an offer - ANSWER-advertisements for the sale of goods, even at
specific prices, generally are treated as this
lapse of time - ANSWER-an offer terminates when a stated time period expires. if no
time is stated, an offer terminates after a reasonable time
mirror image rule - ANSWER-in order for there to be an acceptance, the offeree
must accept the terms as stated in the offer
mutual assent - ANSWER-an agreement required a meeting of the minds of the
parties (to perform current or future contractual duties)
objective theory of contracts - ANSWER-says the intent to contract is judged by the
reasonable person standard and not by the subjective intent of the parties
offer - ANSWER-the manifestation of willingness to enter into a bargain, so made as
to justify another person in understanding that his assent to that bargain is invited
and will conclude it (Section 24 of 2nd Restatement of Contracts)
offeree - ANSWER-the party to whom an offer to enter into a contract is made
offeror - ANSWER-the party who makes an offer to enter into a contract
option contract - ANSWER-an offeree can prevent the offeror from revoking his or
her offer by paying the offeror compensation to keep the offer open for an agreed
upon period of time
properly dispatched - ANSWER-an acceptance must be properly addressed,
packaged, and posted to fall within the mailbox rule
rejection - ANSWER-express words or conduct by the offeree that terminates an
offer
revocation - ANSWER-withdrawal of an offer by the offeror terminates the offer
