AGEC 3713 – Exam 1 . A+ Graded Questions with
Verified Answers
How can an offeree reject an offer (contrast counteroffers with negotiation)? - ✔✔- Just by rejecting the
offer!
- A counteroffer operates as rejection but negotiation does not.
- A conditional acceptance is also a rejection.
What are the different ways that an offeree can accept an offer? - ✔✔A return promise, starting
performing or improper performance
How does "reserved" and "without reserve" auctions work, especially with regard to the seller's ability
to withdraw their items? - ✔✔- At auctions with "reserves" the seller is able to set a minimum amount
they will accept for what they are selling. If the offer is not met they are able to withdraw the item.
- At auctions "without reserves" the seller does not set a minimum offer they will accept, so they are not
able to withdraw their items.
How is consideration defined, and what will/will not suffice as consideration? - ✔✔- Consideration:
bargained for legal detriment. (reflects how parties came to a agreement)
- Past consideration is not a consideration
What constitutes an express warranty? - ✔✔Statements of fact, promises, and descriptions of goods.
NOT mere statements of opinion.
What types of representations are considered express warranties, and how can you disclaim them (heck,
can you disclaim them?)? - ✔✔Anything that is true and not an option, statement of fact, premises and
discipline of goods
What guarantees are implied by the warranty of merchantability and by the warranty of fitness for a
particular purpose? - ✔✔Merchantability: It should do what it ordinarily does.
, Fitness: Has a special purpose for using the goods. Is relying on the seller to select suitable goods. Seller
knows that the buyer is relying on them. Example: Going to the car dealership and asking for a car/truck
to haul your 10 horse trailer and the seller giving you a convertible.
How can you disclaim the warranty of merchantability and the warranty of fitness (heck, can you
disclaim them?)? - ✔✔- A seller can disclaim warranties.
- The phrase "as-is" or "with all faults can be used to eliminate implied warranties.
- You can not disclaim expressed warranties
What kinds of damages are allowed for a breach of contract? - ✔✔- Avoidable damages
- Incidental damages
- Consequential damages
How does the FOB designation show who bears the risk of loss to goods intransport? - ✔✔FOB [seller's
location] "shipment contract" where the buyer bears the risk of loss
OR
FOB [buyer's location] "delivery contract" meaning the seller bears the risk
What is the best way to modify an existing contract? - ✔✔The best way to change its terms, if you can, is
to re-draft a new agreement.
What is required to claim compensation under the concepts of quasi-contract and equitable estoppel
(remember, those are two separate concepts)? Be able to define and calculate each kind of damages. -
✔✔- Equitable remedy that applies whenever contract law would yield an unfair result; primarily
designed to protect against unjust enrichment
- Plaintiff must have conferred a benefit on the defendant, plaintiff reasonably expected to be paid,
defendant will be unjustly enriched if plaintiff is not compensated
REQUIRES 2 THINGS:
- A statement by a party made after the formation of the contract
Verified Answers
How can an offeree reject an offer (contrast counteroffers with negotiation)? - ✔✔- Just by rejecting the
offer!
- A counteroffer operates as rejection but negotiation does not.
- A conditional acceptance is also a rejection.
What are the different ways that an offeree can accept an offer? - ✔✔A return promise, starting
performing or improper performance
How does "reserved" and "without reserve" auctions work, especially with regard to the seller's ability
to withdraw their items? - ✔✔- At auctions with "reserves" the seller is able to set a minimum amount
they will accept for what they are selling. If the offer is not met they are able to withdraw the item.
- At auctions "without reserves" the seller does not set a minimum offer they will accept, so they are not
able to withdraw their items.
How is consideration defined, and what will/will not suffice as consideration? - ✔✔- Consideration:
bargained for legal detriment. (reflects how parties came to a agreement)
- Past consideration is not a consideration
What constitutes an express warranty? - ✔✔Statements of fact, promises, and descriptions of goods.
NOT mere statements of opinion.
What types of representations are considered express warranties, and how can you disclaim them (heck,
can you disclaim them?)? - ✔✔Anything that is true and not an option, statement of fact, premises and
discipline of goods
What guarantees are implied by the warranty of merchantability and by the warranty of fitness for a
particular purpose? - ✔✔Merchantability: It should do what it ordinarily does.
, Fitness: Has a special purpose for using the goods. Is relying on the seller to select suitable goods. Seller
knows that the buyer is relying on them. Example: Going to the car dealership and asking for a car/truck
to haul your 10 horse trailer and the seller giving you a convertible.
How can you disclaim the warranty of merchantability and the warranty of fitness (heck, can you
disclaim them?)? - ✔✔- A seller can disclaim warranties.
- The phrase "as-is" or "with all faults can be used to eliminate implied warranties.
- You can not disclaim expressed warranties
What kinds of damages are allowed for a breach of contract? - ✔✔- Avoidable damages
- Incidental damages
- Consequential damages
How does the FOB designation show who bears the risk of loss to goods intransport? - ✔✔FOB [seller's
location] "shipment contract" where the buyer bears the risk of loss
OR
FOB [buyer's location] "delivery contract" meaning the seller bears the risk
What is the best way to modify an existing contract? - ✔✔The best way to change its terms, if you can, is
to re-draft a new agreement.
What is required to claim compensation under the concepts of quasi-contract and equitable estoppel
(remember, those are two separate concepts)? Be able to define and calculate each kind of damages. -
✔✔- Equitable remedy that applies whenever contract law would yield an unfair result; primarily
designed to protect against unjust enrichment
- Plaintiff must have conferred a benefit on the defendant, plaintiff reasonably expected to be paid,
defendant will be unjustly enriched if plaintiff is not compensated
REQUIRES 2 THINGS:
- A statement by a party made after the formation of the contract
