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Exam 10: Agreement and Consideration

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Question 51

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Burt's pet Gonzo has run away.He places reward posters all over the area offering a reward for Gonzo's return.Ernie sees the reward poster and spends all of his time and a considerable amount of money looking for Gonzo.Meanwhile,Kermit,a friend of Burt and familiar with Gonzo,finds Gonzo and brings him back to Burt without having seen a poster.Seconds after returning Gonzo,Kermit see a reward poster and returns to claim his $500.00.Is Kermit entitled to the reward? Is Ernie entitled to anything?

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Neither Ernie nor Kermit are entitled to...

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Question 52

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The requirement that the terms of the acceptance be the exact same as those of the offer is the:

A) mirror image rule.
B) identical terms rule.
C) counteroffer equals rejection rule.
D) doctrine against offer modifications.
E) promissory estoppel doctrine.

F) A) and B)
G) D) and E)

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Question 53

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If an offeree first dispatches a rejection and then sends an acceptance,the mailbox rule applies to the acceptance.

Kristin offers to sell land to Ian for $5,000.Ian says that $5,000 is too much but he will pay $4,000.Kristin says that she will not sell for $4,000.Two days later,Ian says that Kristin's original offer to sell for $5,000 is acceptable.Kristen says she no longer wishes to sell to Ian because he is a jerk.Which of the following is true about this situation?

The Restatement (Second)of Contracts merely requires that the terms of the offer be "reasonably certain."

An offer made in jest,where a reasonable person would conclude that it was made in jest,cannot result in a contract.

The words "agreement" and "contract" are often used interchangeably.

Generally,a counteroffer is not effective until it is actually received by the offeror.

A rejection is treated as a new offer that leaves the original offer open as well.

The mailbox rule proves that revocations of offers take effect the moment they are mailed.

A gift must be returned unless there was adequate consideration.

Which of the following actions could be taken by an offeree?

Bob runs a factory that makes ladies' clothing.Bob needs a certain type of silk sold by Alice.Bob calls Alice and tells her that he needs 1,000 yards of silk.Alice tells Bob that she cannot guarantee anything but that she will do her best.Alice tells Bob that she will sell him the silk for a 10% markup on what she has to pay.Bob says that is fine.Later,Bob is having financial problems and decides he doesn't want the silk.Unfortunately,Alice calls the next day and tells Bob that she has located 900 yards of silk and that she would like payment.Bob wants out of the deal.He says that there was a lack of consideration and that he never even knew how much he would have to pay.What would a judge likely rule?

The objective theory of contracts asks whether a reasonable person,viewing the circumstances,would conclude that the parties intended to be legally bound.

As a general rule,advertisements for the sale of goods are treated as:

The mailbox rule is also called the "acceptance-upon-arrival" rule.

An agreement is an involuntary exchange of promises between two or more legally competent persons to do,or refrain from doing,an act.

In an auction with reserve,the seller retains the right to refuse the highest bid and withdraw the goods from sale.

An option contract is formed when an offeree prevents the offeror form revoking his or her offer by paying the offeror compensation to keep the offer open for an agreed-upon period of time.

Mary promises to give her car to her friend.The friend sells his current car at a fairly low price because he is expecting to get a nearly new car at no cost from his rich and generous friend,Mary.Mary changes her mind and decides to keep the car.If the friend sues Mary,the court most likely will: