CHAPTER 6—OFFER AND ACCEPTANCE Key
1. Which of the following is true of a valid offer?
2. Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is
interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario,
Ryan is the _____.
3. Which of the following is true of offers and invitations?
4. A firm offer can be best defined as:
5. Which of the following is true of a binding contract?
6. Which of the following is true of revocation of an offer?
7. Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the
house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such
a case?
8. Which of the following is a requirement for the acceptance of an offer to be valid?
9. An offeree’s response that rejects an offer by varying its terms is known as a(n) _____.
10. An offer expresses the willingness of the offeror to enter into a contractual agreement.
11. A valid offer is one that is indefinite.
12. Advertisements and catalogs are examples of general invitations.
13. If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.
14. When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is
considered as accepted.
15. Silence constitutes acceptance to an offer if because of previous dealings, it is reasonable for the offeree to
notify the offeror of non-acceptance.
16. If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer.
17. The offeree may make an inquiry about terms that differ from the offer’s terms without rejecting the offer.
18. The “mailbox rule” does not apply in situations where the offeror does not receive the acceptance.
19. According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer
is made.
20. What are the requirements of a valid offer? Explain.