Contracts, Fall 2019
Offer and Acceptance Problems
Part I. Short Answer
1. Mickey Mouse decided to spend the month of June at Disneyland Paris, but he needed
someone to watch his dog, Pluto, while he was away. Mickey decided to ask his best
friend Goofy if he would take care of Pluto while Mickey was gone. On May 10, Mickey
wrote the following letter to Goofy:
Dear Goofy,
I am going to Disneyland Paris from June 1-June 30, and I need someone to take
care of Pluto while I am away. You would just have to take care of Pluto and keep
an eye on the house. In return, you can stay at my house for free. When I get
back from vacation, I will pay for your food and other expenses for the entire
month of June.
If you want to do this, I don’t need to hear from you right away. If you’d like to
spend June here in California, just come down on May 30. If you are not here by
the end of the day, I will assume you can’t do it, and I will make arrangements
with Minnie Mouse to take care of Pluto.
Love and Hugs,
Mickey
Goofy received Mickey’s letter on May 12. He wrote back immediately telling Mickey
that he would come down on May 30. Goofy mailed the letter on May 13, and it arrived
at Mickey’s home in California on May 15. On May 13, however, Mickey began to
reconsider his initial idea of having a dog watch another dog. On May 16, he wrote back
to Goofy, saying he had made other arrangements. Goofy received the letter on May 18.
Goofy is upset, because he thinks that Mickey can’t just back out right now. Is he
correct? Why or why not?
2. Same facts as Problem #1, but this time, Goofy doesn’t write back to Mickey, and Mickey
doesn’t send any subsequent letters. Instead, Goofy arrives at Mickey’s home in
California on May 30, and Mickey welcomes him with open arms. Mickey leaves for his
vacation on June 1, after Goofy has settled into the house and gotten comfortable with
Pluto. However, Mickey’s trip to Paris does not go well. He discovers that Parisians hate
mice, and Parisian children are afraid of him. He cancels the remainder of his trip and
returns home on June 7. Upon arriving home, Mickey, already stressed out by his failed
vacation, realizes he doesn’t want to live in a house with two dogs. He asks Goofy to
leave, saying he will pay Goofy’s expenses only for the time that Mickey was gone. Can
Mickey revoke his offer? Why or why not?
Part II. Multiple Choice
1. Which of the following statements best characterizes what constitutes an offer under the
objective test?
A. The offeror’s manifestation must lead a reasonable person in the offeree’s position to
understand that the offeree has the power to create a contract by expressing agreement.
B. The offeror’s manifestation must lead a reasonable person in the offeree’s position to
understand that the offeree can create a contract, but important terms are left open for
negotiation.
C. The offeror’s manifestation must lead a reasonable person in the offeree’s position to
understand that the offeree can create a contract via further negotiations.
D. The offeror’s manifestation need not lead a reasonable person in the offeree’s position to believe
that the offeree has the power to create a contract.
2. According to the Carbolic Smoke Ball case, when performance is the only invited means of
acceptance, what act constitutes acceptance and forms a unilateral contract?
A. Beginning performance
B. Completion of performance
C. Completion of performance plus notice to the offeror that performance has taken place
D. Notice to the offeror that performance will take place
3. Under Rest. 2d §40, an acceptance would be valid as an acceptance if:
A. A rejection was sent first, and an acceptance was sent second but received first.
B. A rejection was sent first, and an acceptance was sent second but received second.
C. Either an acceptance or a rejection was sent first; acceptances are always valid as acceptances
whenever they are sent.
D. Neither an acceptance or a rejection was sent first; acceptances always function as counteroffers
under the Restatement.
4. At common law, if the offeror specifies an offer as irrevocable, can he later revoke the same
offer before the offeree’s acceptance?
A. Yes, always; offers are always revocable until accepted.
B. Yes, unless the offeree has given something in exchange for the offer being kept open.
C. No, because the offeror has manifested an objective intention to keep the offer open.
D. No; offers are not revocable once made until a reasonable time has passed.
