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Question 1
Sol is an avid classical music fan and he attends the symphony whenever he can. He also has a large collection of instruments actually used by famous musicians. David has been the symphony's harp player for many years and he is widely recognized as the best harpist in the world. Sol would like nothing more than to add David's harp to his collection of instruments. On April 1st, Sol writes to David and offers to buy the harp for $10,000. Sol tells David that he will leave the offer open until April 15th. On April 14th, David writes to Sol accepting his offer. David drops the letter in the mail on the same day and Sol receives it on April 18th. On April 19th, Sol calls David and tells him that he is no longer interested in buying the harp. David immediately sues Sol for breach of contract. David will probably:
Correct
Incorrect!
Correct The mailbox rule says that acceptances are effective on dispatch as long as they are dispatched in a timely fashion. Since the determining issue here is when the acceptance is mailed out and not when it is received by the offeror, if an acceptance is dispatched within the appropriate time period, a valid contract had been formed even if the offeror receives the acceptance after the time period lapses. That being the case, David's acceptance of Sol's offer was valid, David will be able to recover from Sol for breach of the contract and B is the correct answer.
Incorrect! The mailbox rule says that acceptances are effective on dispatch as long as they are dispatched in a timely fashion. Since the determining issue here is when the acceptance is mailed out and not when it is received by the offeror, if an acceptance is dispatched within the appropriate time period, a valid contract had been formed even if the offeror receives the acceptance after the time period lapses. That being the case, David's acceptance of Sol's offer was valid, David will be able to recover from Sol for 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 whenever he can. He also has a large collection of instruments actually used by famous musicians. David has been the symphony's harp player for many years and he is widely recognized as the best harpist is the world. Sol would like nothing more than to add David's harp to his collection of instruments. On April 1st, Sol writes to David and offers to buy the harp for $10,000. Sol tells David that he will leave the offer open until April 15th and that, if David is agreeable to the offer, he should respond in writing. On April 14th, David calls Sol to accept the offer. On April 19th, Sol writes to David and tells him that he is no longer interested in buying the harp. David immediately sues Sol for breach of contract. David will win this case:
Correct
Incorrect!
Correct Along with being dispatched in a timely manner, an acceptance must be dispatched in a proper manner as well. Essentially, this means that the acceptance must be dispatched by any medium that is reasonable under the circumstances. However, an offeror can specify the particular means that the offeree must use and, in such a circumstance, the offeree can only accept the offer through that specific means of communication. Here, Sol specified that acceptance had to be in writing. Therefore, although David's acceptance was made in a timely fashion, it is not valid because it was not made properly. As such, David cannot recover from Sol and FALSE is the correct answer.
Incorrect! Along with being dispatched in a timely manner, an acceptance must be dispatched in a proper manner as well. Essentially, this means that the acceptance must be dispatched by any medium that is reasonable under the circumstances. However, an offeror can specify the particular means that the offeree must use and, in such a circumstance, the offeree can only accept the offer through that specific means of communication. Here, Sol specified that acceptance had to be in writing. Therefore, although David's acceptance was made in a timely fashion, it is not valid because it was not made properly. As such, David cannot recover from Sol and FALSE is the correct answer.
Question 3
Sol, who lives in Boston, is an avid classical music fan and he attends the symphony whenever he can. He also has a large collection of instruments actually used by famous musicians. David has been the symphony's harp player for many years and he is widely recognized as the best harpist in the world. Sol would like nothing more than to add David's harp to his collection of instruments. David is currently in Los Angeles, where he is taking a six month break from performing. On April 1st, Sol writes to David and offers to buy the harp for $10,000. Sol tells David that he will leave the offer open until April 15th. On April 14th, David writes a letter to Sol accepting the offer. David's friend is about to leave on a cross country drive from LA to Boston and David, looking to save money on postage gives him the letter to take to Sol. Sol receives David's letter one month later, on May 14th. On May 15th, Sol calls David and tells him that he is no longer interested in buying the harp. David immediately sues Sol for breach of contract. David will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct If the offeror does not specify a particular means of acceptance and the offeree uses an unreasonable means of acceptance, the acceptance may still be valid. However, the acceptance will not become effective until the offeror actually receives it. Here, David used an unreasonable means of acceptance. Therefore, the acceptance would not become effective until Sol got the letter. Since the letter did not reach Sol until well after the time for acceptance had lapsed, David's acceptance is invalid, he cannot recover from Sol and D is the correct answer.
Incorrect! If the offeror does not specify a particular means of acceptance and the offeree uses an unreasonable means of acceptance, the acceptance may still be valid. However, the acceptance will not become effective until the offeror actually receives it. Here, David used an unreasonable means of acceptance. Therefore, the acceptance would not become effective until Sol got the letter. Since the letter did not reach Sol until well after the time for acceptance had lapsed, David's acceptance is invalid, he cannot recover from Sol and D is the correct answer.
Question 4
On April 1st, Sol writes to David and offers to buy his harp for $10,000. Sol tells David that he will leave the offer open until April 15th. On April 14th, David writes, and mails, a letter to Sol accepting the offer. On April 15th, David writes, and mails, a letter to Sol rejecting the offer. Sol receives the rejection and then, one day later, he receives the acceptance. When Sol calls David to arrange a time to make their transaction, David tells Sol that he will not sell the harp. Sol immediately sues David for breach of contract. Sol will win:
Correct The mailbox rule says that an acceptance is effective upon dispatch and a rejection is effective upon receipt. That being the case, if an acceptance is mailed before a rejection, a valid contract is made. This is true even if the offeror receives the rejection first. Therefore, David has validly accepted Sol's offer and TRUE is the correct answer.
Incorrect! The mailbox rule says that an acceptance is effective upon dispatch and a rejection is effective upon receipt. That being the case, if an acceptance is mailed before a rejection, a valid contract is made. This is true even if the offeror receives the rejection first. Therefore, David has validly accepted Sol's offer and TRUE is the correct answer.
Correct
Incorrect!
Question 5
On April 1st, Sol writes to David and offers to buy his harp for $10,000. Sol tells David that he will leave the offer open until April 15th. On April 14th, David writes, and mails, a letter to Sol rejecting the offer. On April 15th, David writes, and mails, a letter to Sol accepting the offer. Sol receives the rejection and then, one day later, he receives the acceptance. When Sol calls David to arrange a time to make their transaction, David tells Sol that he will not sell the harp. Sol immediately sues David for breach of contract. Sol will win:
Correct If the offeree's rejection is mailed before the acceptance and the rejection comes before the acceptance, there is no contract, even if the acceptance is mailed before the offeror received the rejection. However, while the acceptance will be invalid as an acceptance, it will have the weight of a counteroffer. Here, David wrote and mailed the rejection first and Sol received the rejection first. That being the case, there was no contract between them. However, David's subsequent acceptance is a counteroffer which Sol accepted. Therefore, David and Sol actually do have a binding contract between them and TRUE is the correct answer.
Incorrect! If the offeree's rejection is mailed before the acceptance and the rejection comes before the acceptance, there is no contract, even if the acceptance is mailed before the offeror received the rejection. However, while the acceptance will be invalid as an acceptance, it will have the weight of a counteroffer. Here, David wrote and mailed the rejection first and Sol received the rejection first. That being the case, there was no contract between them. However, David's subsequent acceptance is a counteroffer which Sol accepted. Therefore, David and Sol actually do have a binding contract between them and TRUE is the correct answer.
Correct
Incorrect!
Question 6
On April 1st, Sol writes to David and offers to buy his harp for $10,000. Sol tells David that he will leave the offer open until April 15th. On April 14th, David writes, and mails, a letter to Sol rejecting the offer. On April 15th, David writes, and mails, a letter to Sol accepting the offer. Sol receives the acceptance and then, one day later, he receives the rejection. When Sol calls David to arrange a time to make their transaction, David tells Sol that he will not sell the harp. Sol immediately sues David for breach of contract. Sol will win:
Correct If a rejection is mailed first but the acceptance arrives first, a contract is formed. In such an instance, the later arriving rejection is not effective as a rejection and does not absolve the offeree of liability under the contract. That being the case, David and Sol have a binding contract between them and TRUE is the correct answer.
Incorrect! If a rejection is mailed first but the acceptance arrives first, a contract is formed. In such an instance, the later arriving rejection is not effective as a rejection and does not absolve the offeree of liability under the contract. That being the case, David and Sol have a binding contract between them and TRUE is the correct answer.