Type
Solution Manual
Book Title
Business Law with UCC Applications 14th Edition
ISBN 13
978-0077733735

978-0077733735 Chapter 8 Solution Manual

April 10, 2019
ANSWER KEY
Chapter 8 Offer, Acceptance, and Mutual Assent
Opening Case Questions
2. Time was not “of the essence in this case. There are several reasons for reaching this conclusion.
(a) In the first place, none of the documents, not the offer, not the agreement, not Addendum A, used
the phrase “time is of the essence.” (b) In the second place, neither Andisman nor Blakeley made any
3. A condition precedent is a condition that requires the performance of certain acts or promises
before the other party is obligated to pay money or provide any other agreed to consideration. A
5. The fact that neither defendant signed the original offer makes no difference in this case. This is
because the Restatement of the Law of Contracts permits the court to examine a series of documents to
find the terms of the contractual arrangement. In this case, Andisman had signed Addendum A and
A QUESTION OF ETHICS -1
Ignoring the Postal Reorganization Act and initiating a mailing campaign that sends unordered
A QUESTION OF ETHICS -2
Yes. The fact that you know about a defect in the automobile means that you would have a duty to
Questions for Review and Discussion
1. Mutual assent arises when both (all) the parties to a contract know the terms of the contract and
their duties under the agreement and have expressed a willingness to go along with those terms and
3. The UCC permits certain information to be omitted from an offer. Specifically, UCC 2-204 states
“even though one or more terms are left open, a contract a contract for the sale does not fail for
4. Unilateral contracts do not usually require communication of expressed acceptance. When the
offeror makes a promise in a unilateral contract, the offeror expects an action, not another promise in
return. Performance of the action requested within the time allowed by the offeror and with the
5. Under the mirror image rule, the terms as stated in the acceptance must exactly “mirror” the terms
in the offer. If the acceptance changes or qualifies the terms in the offer, it is not an acceptance. Instead,
a qualified acceptance is actually a counteroffer. A counteroffer is a response to an offer in which the
terms of the original offer are changed. No agreement is reached unless the counteroffer is accepted by
the original offeror. The UCC has altered the mirror image rule when contract negotiations are being
6. A revocation is the “taking back” of an offer. Offers may be revoked by (1) communication, (2)
7. The rules concerning the interpretation and the enforcement of cyber-contracts are found in the
federal Electronic Signatures in Global and National Commerce Act (the E-Sign Act), the Uniform
8. To destroy mutual assent on a claim of fraud, the complaining or innocent party must prove the
existence of five elements. First, the complaining party will have to show that the other party made a
false representation about some material fact (i.e., an important fact, a fact of substance) involved in the
contract. A material fact is one that is very crucial to the terms of the contract. Second, it must be
shown that the other party made the representation knowing of its falsity. Third, it must be shown that
the false representations were made with the intent that they be relied upon by the innocent party.
Fourth, the complaining party must demonstrate that there was a reasonable reliance on the false
9. A mistake made by only one of the contracting parties is a unilateral mistake and does not offer
sufficient grounds for rescission or renegotiation. When both parties are mistaken, it is a bilateral or
mutual mistake. A bilateral or mutual mistake allows a rescission by either the offeror or the offeree. A
10. Physical duress involves either violence or the threat of violence against an individual or against
that person’s family, household, or property. If only threats are used, they must be so intense and
serious that a person of ordinary prudence would be forced into the contract without any real consent.
Emotional duress arises from acts or threats that would create emotional distress in the one on whom
they are inflicted. Exposure to public ridicule, threatened attacks on one’s reputation, or efforts to
prevent employment might constitute emotional duress. In order to establish economic duress, the
Cases for Analysis
1. The e-mail is not a legally effective offer. The terms are much too indefinite. The e-mail does
not specify which of Triple R-Bars acres Lindbergh-Sikorsky wants to purchase. Nor does it
specify a set price per acre. If there were a breach of contract, the court would not know how to
2. No, Sailors’ Maritimes refusal to pay was not correct. The court ruled this scenario to be a
unilateral agreement and that their performance in remaining with Sailors’ Maritime constituted
acceptance. On the other hand, had Sailors’ Maritime said to Barnes and Layton, “We will
3. Jameson’s silence can be acceptance in this case. In effect, Jameson agreed that whenever she
5. No. This ad was not an offer. Rather, it was an invitation to trade. In this case, the ad did not limit
the sale of the Volvo to one particular person. Rather, the offer was open to anyone who appeared at
6. Yes. Since Thoelke had used the same agent (the U.S. mail) to accept as Morrison had used to
7. No. The acceptance was not in accord with the offer; therefore, there was a qualified acceptance.
Guyan’s qualified acceptance made a material alteration in the offer. As such, it became a counteroffer.
2. Duress. Any agreement to grant immunity or amnesty that is produced by unlawful threats
3. Yes. This situation clearly involves economic duress. The court ruled that the price
END CHAPTER EIGHT

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