978-0538496902 Chapter 6 Part 1

Unlock access to all the studying documents.

View Full Document

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—1ȱQUIZȱ

LegalȱConceptsȱ

Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ

whetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱ

ȱAnswersȱ

1.ȱTheȱtermsȱofȱaȱcontractȱmustȱbeȱacceptedȱbyȱtheȱpartyȱtoȱwhomȱȱ ȱ 1._____ ȱ

ȱitȱwasȱcommunicated.ȱ

2.ȱAnȱagreementȱtoȱcommitȱaȱcrimeȱcanȱbeȱconsideredȱaȱcontract.ȱȱ2._____ ȱ

3.ȱAȱbilateralȱcontractȱisȱoneȱthatȱisȱformedȱbyȱaȱmutualȱexchangeȱofȱȱ3._____ ȱ

ȱlegallyȱbindingȱpromises.ȱ

4.ȱAnȱofferorȱmustȱappearȱtoȱbeȱseriousȱwhenȱmakingȱanȱoffer.ȱȱ4._____ ȱ

5.ȱWordsȱspokenȱinȱangerȱareȱnotȱconsideredȱanȱoffer.ȱȱ5._____ ȱ

6.ȱPreliminaryȱnegotiationsȱareȱconsideredȱtoȱbeȱoffers.ȱȱ6._____ ȱ

7.ȱAȱpurportedȱofferȱthatȱlacksȱessentialȱinformationȱisȱlegallyȱȱ ȱ 7._____ ȱ

ȱineffective.ȱ

8.ȱAnȱexecutedȱcontractȱisȱaȱcontractȱthatȱhasȱnotȱbeenȱfullyȱperformed.ȱȱ8._____ ȱ

9.ȱAȱpersonȱwhoȱisȱnotȱtheȱintendedȱoffereeȱcanȱacceptȱtheȱoffer.ȱȱ9._____ ȱ

10.ȱAdvertisementsȱthatȱaskȱtheȱoffereeȱtoȱperformȱanȱactȱasȱaȱwayȱofȱȱ ȱ 10. ____ ȱ

ȱacceptingȱcannotȱbeȱconsideredȱoffers.ȱ

LegalȱApplicationsȱ

11.ȱCheyaȱasksȱherȱcollegeȱroommateȱhowȱmuchȱmoneyȱsheȱwouldȱgiveȱherȱforȱaȱ

scientificȱgraphingȱcalculatorȱthatȱsheȱnoȱlongerȱneeds.ȱTheȱroommateȱreplies,ȱ

“I’dȱprobablyȱgiveȱyouȱaroundȱ$50ȱforȱit.”ȱHasȱCheyaȱmadeȱaȱlegalȱoffer?ȱ

Explainȱyourȱanswer.ȱ

12.ȱDuaneȱJohnstonȱraisesȱAngusȱbeef.ȱAȱrepresentativeȱfromȱaȱlargeȱmeatȱplantȱ

receiveȱtheȱremainingȱmoneyȱwhenȱtheȱcattleȱareȱshippedȱinȱtwoȱweeks.ȱDidȱ

Duaneȱandȱtheȱrepresentativeȱmakeȱaȱbindingȱcontract?ȱExplainȱyourȱanswer.ȱ

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—1ȱPRACTICEȱACTIVITYȱ

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ

forȱyourȱanswers.ȱ

1.ȱTheȱwidowȱofȱtheȱwidelyȱpublishedȱauthor,ȱJohnȱCheever,ȱenteredȱintoȱaȱwrittenȱ

contractȱwithȱAcademyȱChicagoȱPublishers.ȱTheȱcontractȱtermsȱstatedȱthatȱMrs.ȱ

Cheeverȱ(alongȱwithȱFranklinȱH.ȱDennis,ȱanȱAcademyȱeditor)ȱwasȱtoȱpermitȱandȱ

sheȱobjectedȱtoȱpublicationȱofȱtheȱbook,ȱandȱsheȱattemptedȱtoȱreturnȱtheȱpartialȱ

advance.ȱDoȱtheȱpartiesȱreallyȱhaveȱanȱenforceableȱcontract?ȱExplain.ȱ[Academyȱ

ChicagoȱPublishersȱv.ȱCheever,ȱ578ȱN.E.ȱ2dȱ981(1991)]ȱ

2.ȱTreeceȱisȱviceȬpresident,ȱboardȱofȱdirectorȱmember,ȱandȱ50ȱpercentȱstockȱownerȱ

ofȱofȱVendȬAȬWin,ȱaȱWashingtonȱcorporationȱinȱtheȱbusinessȱofȱdistributingȱ

punchboards.ȱHeȱspokeȱbeforeȱtheȱWashingtonȱStateȱGamblingȱCommissionȱinȱ

supportȱofȱpunchboardȱlegitimacyȱandȱVendȬAȬWin’sȱapplicationȱforȱaȱ

temporaryȱlicenseȱtoȱdistributeȱpunchboards.ȱDuringȱtheȱtestimony,ȱTreeceȱ

wouldȱbeȱtakenȱtoȱChicagoȱforȱinspection.ȱBarnesȱproducedȱhisȱsecondȱ

punchboardȱduringȱaȱlaterȱmeetingȱbeforeȱtheȱGamblingȱCommission.ȱTreeceȱ

andȱtheȱCorporationȱrefusedȱtoȱpay,ȱandȱBarnesȱbroughtȱsuitȱforȱbreachȱofȱ

contract.ȱDidȱTreece’sȱspeechȱcreateȱanȱenforceableȱcontract?ȱExplain.ȱ[Barnesȱv.ȱ

2-2ȱChapter 6 Offer and Acceptance

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—1ȱRETEACHȱ

Directions:ȱWriteȱtheȱanswersȱtoȱQuestionsȱ1–9ȱinȱtheȱblanksȱprovided.ȱTheȱanswerȱ

toȱQuestionȱ10ȱshouldȱappearȱverticallyȱinȱtheȱboxes.ȱ

ȱ ȱ ȱ ȱ ȱȱȱȱȱȱ10.ȱ

1.ȱȱ__ȱ__ȱ__ȱȱ__ȱȱ

2.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

3.ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

4.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ__ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱȱ

6.ȱ ȱȱȱȱȱȱ__ȱ__ȱ__ȱȱ__ȱȱ

7.ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ

8.ȱ ȱȱȱȱȱȱ__ȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

9.ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

ȱȱ1.ȱProposalȱtoȱdoȱsomethingȱȱ

ȱȱ2.ȱJudgesȱuseȱtheȱtestȱofȱtheȱ____________________ȱpersonȱtoȱdetermineȱwhetherȱanȱ

offerȱwasȱmade.ȱ

ȱȱ3.ȱA(n)ȱ____________________ȱarrangementȱisȱnotȱaȱcontract.ȱ

ȱȱ4.ȱPersonȱwhoȱmakesȱanȱofferȱȱ

ȱȱ5.ȱWordsȱspokenȱinȱ____________________ȱorȱterrorȱareȱnotȱconsideredȱcontracts.ȱ

ȱȱ6.ȱAnȱofferor’sȱwordsȱmustȱbeȱexaminedȱinȱtheȱlightȱofȱallȱtheȱrelevantȱ

____________________ȱandȱcircumstances.ȱ

ȱȱ7.ȱAȱpromiseȱcanȱbeȱ____________________ȱfromȱtheȱofferee’sȱconductȱasȱwellȱasȱ

fromȱwords.ȱ

ȱȱ8.ȱRequirementȱthatȱtheȱpartiesȱtoȱaȱcontractȱbeȱableȱtoȱcontractȱforȱthemselvesȱ

ȱȱ9.ȱContractȱthatȱisȱformedȱbyȱaȱmutualȱexchangeȱofȱlegallyȱbindingȱpromisesȱȱȱȱȱȱȱȱ

10.ȱPrice,ȱsubjectȱmatter,ȱandȱquantityȱareȱconsideredȱ____________________ȱtermsȱ

ofȱanȱoffer.ȱ

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ6—1ȱENRICHMENT

Thisȱlessonȱdefinedȱcontracts.ȱInterviewȱaȱfriendȱorȱrelativeȱwhoȱhasȱenteredȱintoȱaȱ

transactionȱforȱaȱservice—e.g.,ȱhavingȱaȱdeckȱbuilt,ȱaȱhouseȱpainted,ȱaȱcarȱserviced,ȱ

etc.ȱ(Note:ȱThisȱinterviewȱwillȱbeȱexpandedȱonȱinȱtheȱEnrichmentȱActivityȱforȱLessonȱ

6–3.)ȱDetermineȱifȱtheȱtransactionȱmeetsȱtheȱsixȱmajorȱrequirementsȱthatȱmustȱbeȱ

satisfiedȱbeforeȱaȱcourtȱwillȱtreatȱtheȱtransactionȱasȱaȱcontract.ȱUseȱtheȱspaceȱ

providedȱtoȱexplainȱhowȱtheȱtransactionȱfulfillsȱeachȱrequirement.ȱ

1.ȱOfferȱandȱacceptanceȱ

2.ȱGenuineȱassentȱ

3.ȱLegalityȱ

4.ȱConsiderationȱ

5.ȱCapacityȱ

6.ȱWritingȱ

2-4ȱChapter 6 Offer and Acceptance

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—2ȱQUIZȱ

LegalȱConceptsȱ

Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ

theȱsentence.ȱ

ȱAnswersȱ

ȱ1.ȱTheȱrightȱofȱ ȱȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱȱallowsȱanȱofferorȱtoȱ

withdrawȱanȱofferȱbeforeȱitȱisȱaccepted.ȱ

1._______________________ȱ

ȱ2.ȱAnȱacceptanceȱtoȱanȱofferȱmustȱbeȱreceivedȱ

withinȱtheȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱstatedȱinȱtheȱoffer.ȱ

2._______________________ȱ

ȱ3.ȱWhenȱanȱoffereeȱrejectsȱtheȱoffer,ȱtheȱofferȱisȱ

ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱ.ȱ

3._______________________ȱ

ȱ4.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱresultsȱwhenȱtheȱoffereeȱchangesȱ

theȱofferor’sȱterms.ȱ

4._______________________ȱ

ȱ5.ȱA(n)ȱ ȱȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱȱisȱmadeȱwhenȱanȱoffereeȱgivesȱ

theȱofferorȱsomethingȱofȱvalueȱinȱreturnȱforȱaȱ

promiseȱtoȱkeepȱtheȱofferȱopen.ȱ

5._______________________ȱ

ȱ6.ȱ ȱȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱȱareȱthoseȱwhoȱregularlyȱdealȱinȱ

boughtȱorȱsoldȱgoods.ȱ

6._______________________ȱ

ȱ7.ȱAȱcounterofferȱterminatesȱtheȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱoffer.ȱ7._______________________ȱ

ȱ8.ȱTheȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱmakesȱfirmȱoffersȱbindingȱforȱtheȱ

8._______________________ȱ

ȱ9.ȱAȱcontractualȱproposalȱbyȱaȱmerchantȱforȱtheȱsaleȱ

orȱpurchaseȱofȱgoodsȱstatingȱinȱaȱsignedȱwritingȱ

howȱlongȱitȱisȱtoȱstayȱopenȱisȱcalledȱaȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱ.ȱ

9._______________________ȱ

10.ȱDeathȱorȱ ȱȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱȱonȱtheȱpartȱofȱtheȱofferorȱorȱ

theȱoffereeȱterminatesȱtheirȱoffer.ȱ

10._______________________ȱ

Chapter 6 Offer and Acceptance 2-5

2-6ȱChapter 6 Offer and Acceptance

LegalȱApplicationsȱ

11.ȱJansonȱisȱaȱmerchantȱwhoȱdealsȱinȱchildren’sȱtoys.ȱOnȱOctoberȱ21,ȱsheȱmakesȱanȱ

priceȱofȱtheȱtoysȱhasȱrisenȱsharply.ȱIsȱJansonȱrequiredȱtoȱkeepȱtheȱofferȱopen?ȱ

Explain.ȱ

12.ȱȱ JenniferȱoffersȱtoȱsellȱherȱcollectionȱofȱradioȬcontrolledȱcarsȱtoȱTessȱforȱ$1500.ȱ

TessȱtellsȱJenniferȱsheȱwantsȱtoȱthinkȱitȱover.ȱTessȱlaterȱphonesȱJenniferȱandȱsays.ȱ

worthȱmoreȱthanȱ$1500,ȱandȱsheȱcallsȱJenniferȱbackȱandȱacceptsȱtheȱoriginalȱ

offer.ȱIsȱJenniferȱlegallyȱobligatedȱtoȱsellȱtheȱcarsȱtoȱTessȱforȱ$1500?ȱExplainȱyourȱ

answer.ȱ

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—2ȱPRACTICEȱACTIVITYȱ

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ

spaceȱisȱneededȱforȱanswers.ȱ

1.ȱTheȱSimmons’ȱsonȱisȱdeceased.ȱWhenȱtheirȱsonȱwasȱinȱcollege,ȱheȱtookȱoutȱaȱlifeȱ

insuranceȱpolicyȱvaluedȱatȱ$5,000,ȱwhichȱwasȱofferedȱforȱfreeȱbyȱtheȱalumniȱ

associationȱforȱnineȱmonths.ȱTheȱpolicyȱgaveȱtheȱoptionȱofȱcontinuingȱasȱaȱ

theȱpremium,ȱandȱtheȱSimmonsȱthenȱfiledȱforȱtheȱ$25,000.ȱTheȱinsuranceȱ

companyȱrefusedȱtoȱpay.ȱCanȱtheȱparentsȱrecoverȱfromȱtheȱinsuranceȱcompany?ȱ

Explain.ȱ[Simmonsȱv.ȱAllȱAmericanȱLifeȱIns.ȱCo.,ȱ838ȱP.ȱ2dȱ1088ȱ(Ore.ȱCt.ȱApp.ȱ

1992)]ȱ

2.ȱDonaldȱmailedȱaȱwrittenȱofferȱandȱaȱdepositȱtoȱDwayneȱforȱaȱpieceȱofȱpropertyȱ

DwayneȱownedȱthatȱDonaldȱwantedȱtoȱbuy.ȱInȱhisȱwrittenȱoffer,ȱDonaldȱ

stipulatedȱthatȱhisȱofferȱwouldȱexpireȱonȱFebruaryȱ4,ȱatȱwhichȱtimeȱDwayneȱwasȱ

acceptanceȱfromȱDonald,ȱDwayneȱconsideredȱtheȱnegotiationsȱterminatedȱandȱ

soldȱtheȱpropertyȱtoȱsomeoneȱelse.ȱDonaldȱsuedȱclaimingȱbreachȱofȱcontract.ȱIsȱ

Donald’sȱclaimȱcorrect?ȱExplain.ȱ[Sullivanȱv.ȱEconomicȱResearchȱProperties,ȱ455ȱSo.ȱ

2dȱ630ȱ(Fla.ȱCt.ȱApp.ȱ1984)]ȱ

Chapter 6 Offer and Acceptance 2-7

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—2ȱRETEACHȱ

Directions:ȱWriteȱtheȱanswersȱtoȱQuestionsȱ1–10ȱinȱtheȱblanksȱprovided.ȱTheȱanswerȱ

toȱQuestionȱ11ȱshouldȱappearȱverticallyȱinȱtheȱboxes.ȱ

ȱȱȱȱ 11.ȱ

1.ȱ__ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱȱ

3.ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

4.ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ

5.ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

7.ȱ__ȱ__ȱ__ȱȱ__ȱ

9.ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

10.ȱ__ȱȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ__ȱ

1.ȱAȱsigned,ȱwrittenȱofferȱmadeȱbyȱaȱmerchantȱ

2.ȱPersonȱwhoȱregularlyȱdealsȱinȱgoodsȱ

3.ȱContractsȱareȱagreementsȱenteredȱintoȱ____________________ȱbyȱtheȱpartiesȱandȱ

subjectȱtoȱtheirȱcontrol.ȱ

4.ȱAgreementȱwhereȱtheȱoffereeȱgivesȱtheȱofferorȱsomethingȱofȱvalueȱinȱreturnȱforȱaȱ

promiseȱtoȱkeepȱtheȱofferȱopen.ȱ

5.ȱAȱnewȱofferȱwhereȱtheȱtermsȱofȱanȱoriginalȱofferȱwereȱchangedȱ

6.ȱMentalȱstateȱofȱanȱofferorȱthatȱterminatesȱhisȱorȱherȱofferȱ

7.ȱInȱadditionȱtoȱinsanity,ȱtheȱ____________________ȱȱofȱanȱofferorȱterminatesȱtheȱ

offer.ȱ

8.ȱOffersȱareȱvalidȱforȱaȱreasonableȱlengthȱofȱ____________________ȱwhenȱnoȱ

specificȱlengthȱofȱlifeȱisȱstated.ȱ

9.ȱA(n)ȱ____________________ȱofferȱisȱterminatedȱbyȱaȱcounteroffer.ȱ

10.ȱTheseȱrulesȱmakeȱfirmȱoffersȱbindingȱforȱtheȱtimeȱstatedȱ

11.ȱTheȱrightȱtoȱwithdrawȱanȱofferȱbeforeȱitȱisȱacceptedȱ

2-8ȱChapter 6 Offer and Acceptance

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—2ȱENRICHMENTȱ

Thereȱareȱaȱvarietyȱofȱwaysȱtoȱterminateȱanȱoffer,ȱasȱoutlinedȱinȱthisȱlesson.ȱ

Interviewȱaȱcontractȱlawyerȱorȱcertainȱindividualsȱwhoȱenterȱintoȱcontractsȱ

frequentlyȱasȱpartȱofȱtheirȱcareer.ȱAskȱthemȱtoȱgiveȱyouȱexamplesȱofȱcontractsȱthatȱ

wereȱterminated.ȱThenȱseeȱifȱyouȱcanȱfitȱtheseȱexamplesȱintoȱtheȱcategoriesȱlistedȱ

below.ȱ

1.ȱRevocationȱbyȱtheȱofferorȱ

2.ȱTimeȱstatedȱinȱtheȱofferȱ

3.ȱReasonableȱlengthȱofȱtimeȱ

4.ȱRejectionȱbyȱtheȱoffereeȱ

5.ȱCounterofferȱ

6.ȱDeathȱorȱinsanityȱofȱeitherȱtheȱofferorȱorȱoffereeȱ

Chapter 6 Offer and Acceptance 2-9

STUDENT _______________________________________ CLASS _______________________ DATE _________

ȱLESSONȱ6—3ȱQUIZȱ

LegalȱConceptsȱ

Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ

whetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱ

ȱȱ Answersȱ

ȱȱ1.ȱAnȱofferȱmadeȱtoȱoneȱpersonȱcanȱbeȱacceptedȱbyȱanother.ȱ1._______ȱ

ȱȱ2.ȱȱ Theȱmirrorȱimageȱruleȱrequiresȱthatȱtheȱtermsȱinȱtheȱacceptanceȱ

mustȱbeȱcloseȱtoȱtheȱtermsȱcontainedȱinȱtheȱoffer.ȱ

2._______ȱ

ȱȱ3.ȱȱ Anȱofferȱcanȱbeȱmadeȱtoȱaȱparticularȱgroupȱorȱtoȱtheȱpublic.ȱ3._______ȱ

ȱȱ4.ȱAnyȱvariationȱmadeȱtoȱaȱcontractȱdealingȱwithȱtheȱsaleȱofȱgoodsȱ

isȱaȱcounterofferȱifȱagreedȱinȱadvance.ȱ

4._______ȱ

ȱȱ5.ȱAȱmentalȱdecisionȱtoȱacceptȱanȱofferȱisȱnotȱanȱacceptance.ȱ5._______ȱ

ȱȱ6.ȱAȱbilateralȱacceptanceȱoccursȱwhenȱanȱoffereeȱindicatesȱ

acceptanceȱbyȱperformingȱhisȱorȱherȱobligationsȱunderȱtheȱ

contract.ȱ

6._______ȱ

ȱȱ7.ȱAȱunilateralȱacceptanceȱoccursȱwhenȱanȱoffereeȱindicatesȱ

acceptanceȱbyȱgivingȱaȱpromise.ȱ

7._______ȱ

ȱȱ8.ȱȱ Contractualȱcommunicationsȱsuchȱasȱoffersȱandȱcounteroffersȱ

canȱonlyȱbeȱcommunicatedȱinȱwriting.ȱ

8._______ȱ

ȱȱ9.ȱAnȱacceptanceȱisȱtheȱonlyȱformȱofȱcontractualȱcommunicationȱ

thatȱisȱeffectiveȱwhenȱsent.ȱ

9._______ȱ

10.ȱȱ Oralȱacceptancesȱareȱeffectiveȱtheȱmomentȱtheȱwordsȱareȱspokenȱ

directlyȱtoȱtheȱofferor.ȱ

10._______ȱ

11.ȱAȱfaxedȱacceptanceȱofȱaȱcontractȱbecomesȱeffectiveȱ

instantaneouslyȱwhenȱtheȱtransmissionȱlinesȱareȱopenȱandȱbothȱ

sendingȱandȱreceivingȱequipmentȱworkȱproperly.ȱ

11.ȱ______ȱ

12.ȱȱ Courtsȱinȱsomeȱstatesȱapplyȱtheȱmirrorȱimageȱruleȱonlyȱwhenȱtheȱ

termȱinȱtheȱofferȱisȱmaterial.ȱ

12.ȱ______ȱ

2-10ȱChapter 6 Offer and Acceptance

LegalȱApplicationȱ

13.ȱJuanȱwasȱvacationingȱatȱaȱMexicanȱresortȱwhenȱheȱlostȱaȱvaluableȱnecklace.ȱHeȱ

necklaceȱandȱcontactedȱhim.ȱJuanȱtoldȱherȱheȱwouldȱgiveȱherȱonlyȱ$300ȱforȱ

returningȱtheȱnecklaceȱsinceȱheȱhadȱtoȱwaitȱsoȱlongȱforȱit.ȱCanȱJuanȱrevokeȱhisȱ

$500ȱofferȱforȱthisȱreason?ȱExplainȱyourȱanswer.ȱ