Question

1. The concept of mutual assent is also called a/an: ___ Agreement of sorts. ___ Meeting of the minds. ___ Intent to negotiate. ___ Void contract. ___ Contract in rem.

2. If the offeror revokes her offer before acceptance by the offeror, the offer is: ___ Terminated, by operation of law. ___ Terminated, by action of the parties. ___ Not terminated, because all offers are irrevocable. ___ None of the above.

3. The mailbox rule determines the effective date of the: ___ Acceptance ___ Revocation ___ Rejection ___ Postmark ___ Mutual assent

4. The night before his commencement ceremony, Leland’s uncle promises to buy him a new car after he actually sees Leland receive his diploma. Leland gladly accepts. After the ceremony, Leland’s uncle says, “Just kidding, no car!” Leland cannot prevail in a breach of contract claim because the agreement lacks: ___ Offer ___ Acceptance ___ Consideration ___ Legality ___ Mutual assent

5. Which of the following does not result in the termination of an offer? ___ Revocation ___ Acceptance ___ Rejection ___ Death of the offeror ___ Destruction of the subject matter

Answer 1

1. The answer is MEETING OF THE MINDS.

Rationale: Mutual Assent is an agreement between those two parties who wish to form a contract. It is also known as meeting of the minds. It signifies that both the parties agree to the terms and conditions of the contract they are setting, as long as the all the requirements are in place.

2. The answer is TERMINATED BY ACTION OF THE PARTIES.

Rationale: The types of termination that fall under termination by action of parties include revocation, rejection and counteroffer. The types of termination that fall under by termination by operation of law include lapse of time, destruction of subject matter, death of offeror and illegality. So, if the offeror revokes the offer before the acceptance, it is terminated by action of the parties.

3. The answer is ACCEPTANCE.

The mailbox rule states that as soon as the acceptances are mailed, they become effective on dispatch even before the offeror receives it. According to mailbox rule, when the parties are not able to negotiate face to face, they need to dispatch the acceptance with a date and it becomes effective even before the dispatch.

4. The answer is CONSIDERATION.

Rationale: Consideration in a contract refers to anything of value or any benefit that each party expects to get or actually gets when entering a contract. In a contract, both the parties need to exchange consideration (thing of value) with each other. In the question, Leland's uncle wouldn't have gotten any benefit so the contract lacked consideration.

5. The answer is ACCEPTANCE.

Rationale: Revocation takes place when the offeror takes back his offer and it is communicated to the offeree. The offer is terminated by action of the parties.

Rejection takes place when the offer is unacceptable and therefore, is terminated.

If the offeror dies before the offer is accepted, the offer is automatically terminated by operation of law.

If the subject of the contract is destroyed even without the fault of the parties, it offer is termintaed unless it can be easily replaced.

Acceptance takes place when both the parties become mutually bound to the contract by providing consideration.