The formation of a contract requires a bargain in which there is a manifestation of

mutual assent to the exchange, AND a ___. The manifestation of

mutual assent to an exchange ordinarily takes the form of an ___
by one party followed by an ___ by the other party.
consideration; offer; acceptance

Under the UCC, when a contract for the sale of goods is breached by the seller for
failure to tender conforming goods to the buyer; after the buyer
has had an opportunity to inspect the goods:
What are the buyer's options regarding the nonconforming goods?
The buyer may accept the whole shipment, reject the whole shipment, or accept in
part and reject in part

Under the UCC, if the buyer receives non conforming goods, and after a reasonable
opportunity for inspection, the buyer does not notify the seller of
the buyer's intention to reject the non-conforming goods, the
buyer is deemed to have accepted the goods.
True

Under the common law a valid acceptance must contain three elements. To be valid
an acceptance by the offeree must be:___ ;___ ; and clearly or
properly ___. That is, the acceptance must be the "___" of the
offer.
unconditional; unequivocal; communicated; mirror image

Under the common-law perfect tender rule the seller must tender the quality,
quantity, and delivery method exactly as specified in the contract
or the buyer has the right to reject the goods and rescind the
contract.
True

A(n) ____ is created by a seller's promise or guarantee as to the quality, safety,

performance, or durability of goods being sold.
express warranty

Under common law, an offeree's ____-______ to the offeror terminates the offeree's
power of acceptance.
counter-offer

Under the theory of promissory estoppel a legally-recognizable obligation to perform

may arise from the making of a promise if it was intended that the
promise should be relied upon and in fact it was relied upon, and
if a result to enforce it would be virtually to sanction the
perpetuation of fraud or would result in other injustice, even
though the promises are exchanged without consideration.
True

Under the UCC, an offer to buy goods for prompt or current shipment shall be
construed as inviting acceptance either by a prompt promise to
ship or by the prompt or current shipment of either conforming or
nonconforming goods,
True
The (higher) price paid by a buyer for substitute goods in the event of a breach by a
seller, either by a failure of the seller to deliver goods or by
delivering non-conforming goods, is called:
cover costs

Some contracts must be in writing and signed to be enforceable. Contracts that are
covered by the statute of frauds include:
all of the other answer choices

Under the common law, a good faith agreement modifying a contract that is not yet
fully performed on either side of the bargain needs no new
consideration to be a binding modification so long as the
circumstances prompting the modification were unanticipated by
either party and the modification was fair and equitable.
True

Under common-law, a contractual acceptance may be validly unconditional,

unequivocal, and properly communicated even if the offeree
silently accepts the offer when by prior course of business
dealings the parties have previously manifested mutual assent.
True

Under the common law, an acceptance cannot deviate from the terms of the offer
without being considered either a rejection or a counteroffer.
Under UCC Article 2:
an acceptance is valid when the parties intend to form a contract⎯even though the
offeree's acceptance contains different terms from those in the
offer

Under the common law, in order for the offeree to gain the benefit of a firm offer the
offeree had to provide additional consideration. Under the UCC a
firm offer by a merchant also must be supported by additional
consideration by the offeree.
False

A buyer and a seller would like to enter into a contract for the sale of goods. The
buyer's purchase order (i.e. the buyer's offer) does not specify a
key term - price. The seller otherwise accepts the buyer's offer.
Does a contract exist? Why or why not?
there is a contract under Article 2 because it allows the parties to enter into a contract
even though the price is to be determined later

John offers to fix Bill's broken door for $100 dollars but subject to Bill's acceptance
within three days. Seven days later Bill accepts John's offer. John
has taken another project and is no longer able to fix Bill's door.
Has Bill's power of acceptance of John's offer been terminated?
Yes, the offeree's power of acceptance is terminated by lapse of time or the non-
occurrence of the time limit of acceptance

Wendy is a merchant in widgets. Wendy signs a written agreement with Widget

World, Inc. that Wendy will keep her offer to buy widgets from
 Widget World, Inc. open for a period of three months. Wendy
and Widget World exchange no consideration for Wendy's
assurance to buy. May Wendy revoke her offer within the three
month period?
No, Under the UCC a merchant's firm offer needs no consideration to be binding.

Trucking Company (buyer) agrees to purchase 100 sets of tires from Tires R Us
(seller). After the tires are received and accepted by Trucking,
Tires R Us receives no payment. What is Tires R Us' remedy?
Sue to recover the purchase price and resulting damages

Buyer enters into a contract with Shoes Unlimited for the sale of 500 pairs of brown
shoes. Shoes Unlimited ships on time to Buyer 400 pairs of
brown shoes and 100 pairs of blue suede shoes. What may the
Buyer do in response?
All of the specific answers are correct

The House Store (buyer) enters into a contract for the sale of 10,000 LED lightbulbs
from the Edison Company (seller). Edison promptly ships 10,000
traditional filament lightbulbs. If the House Store fails to inform
Edison of House Store's rejection of the non-conforming goods
what are House Store's remedies?
Buyer may deduct damages from the price of the goods

Homeowners enter into a contract negotiation with Builder to construct a home.

After several months both parties sign a written agreement that
does not contain a merger clause or otherwise indicate a complete
expression of the agreement. After construction is underway but
performance is not fully completed Homeowners sues Builder
and attempts to submit evidence of a prior oral contract accepted
by Builder. May Homeowners submit such prior evidence?
No, the statute of frauds requires the contract to be in writing and therefore no
evidence of prior oral agreements may be introduced.?

William is Kate's real estate attorney. Kate is elderly but does not suffer from
dementia or mental illness. William drafts a contract for sale of
Kate's home to William's friend Harry for less than fair market
value of the house. Kate is very reluctant to execute the contract
but after much persistent urging by William eventually signs the
deed to Harry. Is there potential defect in the bargain for the sale
of the house?
Yes, William's fiduciary relationship with Kate creates the potential for undue
influence

Service Professionals, Inc. enters into a contract to clean the offices of Mega Corp.
After six months, Mega Corp. and Service Professionals mutually
agree that Clean Sweep, LLC will assume the responsibility of
cleaning Mega Corp's offices. This discharge of Service
Professionals is an example of?
Novation
In Caley v. Gulstream Aerospace Corp. the appellate court held that the employees'
(plaintiffs) continuation of their employment at Gulfstream
(defendant) did not constitute a valid acceptance of the company's
offer to adopt a dispute resolution policy.
False