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Question 1
Sol is an avid classical music fan and he attends the symphony several times a month. He also has a large collection of antique musical instruments that he adds to whenever he can. David, one of Sol's best friends, is about to go on a vacation to India. Sol calls David and tells him that if David finds an antique sitar during his trip he should buy it and then send it to Sol along with a note stating the price David will sell the instrument for. Sol tells David "if you don't hear from me within a week, consider the price you state accepted." David does, in fact, find an antique sitar, which he buys for $800, and, when he returns to the United States, he sends the instrument to Sol with a note indicating that David will sell the instrument to Sol for $1,000. Two weeks later, Sol tells David that he is not interested in buying the sitar. David immediately sues Sol for breach of contract. David will probably:
Correct
Incorrect!
Correct Usually, silence does not constitute acceptance. However, silence will constitute acceptance if the offeree gives the offeror the impression that silence will be considered an acceptance. Here, Sol gave David the impression that silence for one week would signify acceptance of David's offer to sell the sitar for $1,000. By not contacting David for two weeks, Sol, in fact, accepted David's offer. That being the case, Sol is now in breach of the contract and B is the correct answer.
Incorrect! Usually, silence does not constitute acceptance. However, silence will constitute acceptance if the offeree gives the offeror the impression that silence will be considered an acceptance. Here, Sol gave David the impression that silence for one week would signify acceptance of David's offer to sell the sitar for $1,000. By not contacting David for two weeks, Sol, in fact, accepted David's offer. That being the case, Sol is now in breach of the contract and B is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Question 2
Sol is an avid classical music fan and he attends the symphony several times a month. He also has a large collection of antique musical instruments that he adds to whenever he can. David, one of Sol's best friends, is currently on vacation in India. While on his trip, David buys several antique sitars, each with unique carvings and decorative elements. When he returns to the United States, David sends the instruments to Sol with a note saying "take a look at these and let me know if you want to buy any of them to add to your collection." Sol immediately has the instruments stripped, re-varnished, restrung and mounted in cases, which he then places in the show room where he keeps his collection of antique instruments. A month later, Sol tells David that he is not interested in buying the sitars. David immediately sues Sol for breach of contract. David will probably:
Correct Usually, silence does not constitute acceptance. However silence will constitute acceptance where an offeree improperly exercised dominion over goods sent to him for approval or inspection. In such an instance, the offeree is contractually bound to buy the goods at the stated price. Here, Sol improperly exercised dominion over the instruments. That being the case, David will be able to recover the reasonable price of the instruments from Sol and A is the correct answer.
Incorrect! Usually, silence does not constitute acceptance. However silence will constitute acceptance where an offeree improperly exercised dominion over goods sent to him for approval or inspection. In such an instance, the offeree is contractually bound to buy the goods at the stated price. Here, Sol improperly exercised dominion over the instruments. That being the case, David will be able to recover the reasonable price of the instruments from Sol and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 3
Sol is an avid classical music fan and he attends the symphony several times a month. He also has a large collection of antique musical instruments that he adds to whenever he can. David, one of Sol's best friends, is about to go on a vacation to India. Sol calls David and tells him that if David finds an antique sitar during his trip he should buy it and then send it to Sol along with a note stating the price David will sell the instrument for. David does, in fact, find an antique sitar and, when he returns to the United States, he sends the instrument to Sol with a note indicating that David will sell the instrument to Sol for $1,000. Three weeks later, Sol tells David that he will buy the sitar at David's set price of $1,000. David does not respond to Sol and, one week later, Sol delivers a $1,000 check to David and tries to take the sitar. David informs Sol that he has changed his mind and that he does not want to sell the sitar anymore. Sol immediately sues David for breach of contract. Sol will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct Usually, silence does not constitute acceptance. However silence will constitute acceptance in a situation where an offeror makes an offer to an offeree, the offeree accepts in an untimely manner, and the original offeror does not respond to the offeree's acceptance. The late acceptance is not considered a valid acceptance but it is considered a counteroffer which the original offeror can either accept or reject. If an offeree sends a late acceptance but the acceptance is sent within a period of time that the offeree could have thought was reasonable, the courts have decided that good faith requires the original offeror to notify the original offeree that the acceptance was too late. If the original offeror does not give such notice, the offeror's silence will be considered acceptance of the offeree's late acceptance/counteroffer. That being the case, David's silence in the face of Sol's late acceptance is actually an acceptance of Sol's (counter)offer to buy the sitar for $1,000. Therefore, Sol can recover from David and C is the correct answer.
Incorrect! Usually, silence does not constitute acceptance. However silence will constitute acceptance in a situation where an offeror makes an offer to an offeree, the offeree accepts in an untimely manner, and the original offeror does not respond to the offeree's acceptance. The late acceptance is not considered a valid acceptance but it is considered a counteroffer which the original offeror can either accept or reject. If an offeree sends a late acceptance but the acceptance is sent within a period of time that the offeree could have thought was reasonable, the courts have decided that good faith requires the original offeror to notify the original offeree that the acceptance was too late. If the original offeror does not give such notice, the offeror's silence will be considered acceptance of the offeree's late acceptance/counteroffer. That being the case, David's silence in the face of Sol's late acceptance is actually an acceptance of Sol's (counter)offer to buy the sitar for $1,000. Therefore, Sol can recover from David and C is the correct answer.