OFFERINGS_AND_AGREEMENTS_EXAMS_SET_2026_FULL_SOLUTION_VIEW_AHEAD

OFFERINGS AND AGREEMENTS EXAMS SET
2026 FULL SOLUTION VIEW AHEAD
QUESTIONS AND ANSWERS GRADED A+

●● This requires that they:. Answer: 1) Understood each other and
2) Intended to reach an agreement
3) One side must make an offer and the other must make an acceptance


●● Offer. Answer: An act or statement that proposes definite terms and
permits the other party to create a contract by accepting those terms


●● Offeror. Answer: The person who makes the offer


●● Offeree. Answer: The person to whom an offer is made


●● Two questions determine whether a statement is an offer. Answer: 1)
Do the offeror's words and actions indicate an intention to make a
bargain?


2) Are the terms of the offer reasonably definite?


●● Statements that usually do NOT amount to offers. Answer: 1)
Invitation to bargain

, 2) Price quotes
3) Letters of intent
4) Advertisements
5) Auctions


●● Advertisements. Answer: 1) Generally not an offer
2) Merely a request for offers
3) Consumer protection statutes: Laws protecting consumers from fraud


●● Auctions. Answer: 1) Placing an item up for auction is not an offer, it
is merely a request for an offer
2) The bids are the offers
3) If and when the hammer falls, the auctioneer has accepted the offer
A) With reserve - Item for sale has a minimum price
B) Without reserve - No minimum sales price (highest winning bid)


●● Problems with definiteness. Answer: 1) Terms of the offer must be
definite


2) Example: Toyota//Toy Yoda