TRUE/FALSE Indicate whether the statement is true or false (An answer must be all True to be True)

1. T F

2. T F

3. T F

4. T F

5. T F

6. T F

7. T F

8. T F

9. T F

10. T F

11. T F

12. T F

13. T F

14. T F

15. T F

16. T F

17. T F

18. T F

19. T F

20. T F

21. T F

22. T F

23. T F

24. T F

25. T F

The Restatement (Second) of Contracts and modern contract law use an objective standard. An offer has two elements: the promisors promise and the consideration for the promisors promise. In making an offer, the promisor may require the promisee to promise or to perform. Consideration is one of the three elements of contract formation (offer, acceptance, and consideration). An offer must always target a specific person. An illusory promise is an unequivocal assurance that something will or will not occur. The Restatement (Second) of Contracts 90 provides when reliance can circumvent the need for consideration.

The Restatement (Second) of Contracts 90 provides when reliance can be used to create a reliance cause of action if a party makes statements that are less than an unequivocal assurance that something will or will not occur and the other party relies on those statements.

Motive can be consideration for the promisors promise.

If the offeree has already promised or performed (past consideration), the offeror would not be making his or her promise to induce the offerees promise or performance and there would be no bargained-for-exchange.

As a general rule, an acceptance is effective when dispatched by the offeree. Offerors revoke, offerees reject.

If the offer reads, I promise to sell you my car for your promise to pay me $5,000 and I will keep this offer open until Saturday, noon, an attempted revocation by the offeror on Thursday is ineffective because of the option contract.

If the offer reads, I promise to sell you my car for your promise to pay me $5,000 and I will keep this offer open until Saturday, noon, an attempted rejection by the offeree on Thursday will preclude the offeree from accepting on Friday.

An offer for a unilateral contract requires full performance for an acceptance; an offer for a bilateral contract required a promise for an acceptance and that promise may be implied from performance.

A popular country singer contracted to perform over the 4th of July at a local casino for $100,000. When the casino heard that another venue had offered her more money for a performance on that date, the local casino offered her $150,000 if she would not cancel her appearance. By agreeing to the $150,000, the singer has a contract for $150,000.

A contract has two considerations, not just one.

As a general rule, death of the offeror will terminate the offerees power to accept.

As a general rule, an auction is with reserve.

The Restatement of Restitution describes situations where no offer was made but a benefit was conferred with an intent to charge and therefore a restitution cause of action (not a breach of contract cause of action) might be possible.

An option contract may be express or implied from the facts.

Martha promised to give her daughter, Julie, a Corvette for her 21st birthday. When Martha made this promise, she also gave Julie a letter that said, I promise to sell you this Corvette for your promise to pay me $500. The letter makes the transaction an offer and not a gift promise.

An option contract negates the offerees need to accept the main contract offer. The offeror is the master of the offer and controls the terms of the acceptance. An offeree may accept an offer for a unilateral contract by promising the offeror that he or she will perform.

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The standard used in the Restatement (Second) of Contracts and modern contract law. An unequivocal assurance that something will or will not be done. The second element of an offer. The Latin phrase for bargained-for-exchange.

An offer for a bilateral contract is a promise for what? An offer for a unilateral contract is a promise for what? I promise to sell you Blackacre for $500,000 if I feel like it. Consideration that is feigned or pretended. A cause of action based on unjust enrichment.

An acceptance must be the _____________________ of the offer. An auction in which the seller (acting through the auctioneer) is the offeror. An auction is presumed to be. An offer that is not accepted, revoked or rejected, will _____________________.