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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Module 3 Short Answer

Module 3 Short Answer

Q 1. Henry, very angry because his new car broke down, yells out "Anyone wanna buy a piece of junk for $100?" Ida overhears Henrys and says, "I do, here's $100." What result? 2. Henry offers to sell his home to Ida for "about $100,000 plus closing costs." Ida accepts Henry's offer, but a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute? 3. Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation? 4. While looking for apartments, Ida finds one that she likes. The building manager agrees to an option contract in which he will hold the apartment for Ida for four days in return for $100. At the end of the fourth day, Ida finds another apartment that she likes better and signs a lease with its building manager. Because Ida's contract with the original building manager is an option contract, the building manager is under: 5. Under common law, if the offeree’s acceptance with terms that are not identical to the offeror’s terms, then which of the following is true?

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1. B. Henry need not sell his car for $100, since he was clearly angry. 2. A. The court will declare the purchase price and terms too indefinite to create a binding contract. 3. A. Louis has not accepted the offer as required by the offeror, and there is no contract. 4. D. no legal obligation to return Ida's $100 payment. 5. B. The parties have a contract because the offeree accepted substantially all of the offeror’s terms.