17. If an offer for a sale of goods does not specify how long it will remain open, it will remain open or one a. b. c. d. e. One week. One month. One day. A maximum of 90 days. None of the above is true. 18. Ivan was interested in buying a 40-acre parcel of commercially zoned property offered for sale by Land Co. He thought he might build a professional office complex, but would not know for sure until he consulted with soil engineers and architects. To make certain that the property was not taken off the market or sold to another buyer while he was deciding, he gave Land Co. $15,000 to keep the offer open exclusively to him for 3 months. This is an example of a a. Preliminary negotiation. b. Merchant's firm offer c. Bargained for exchange. d. Option contract 19. Famous Chef told Shrimp Boat Captain: I will buy your entire catch if I think the shrimp are large enough." What is the status of this promise? This is a valid promise because size is a quantifiable term. This is an illusory promise because the chef has complete control over whether or not he will keep the promise. This is a valid promise because the chef must make the decision in good faith. This is an illusory promise for a contract but a valid promise for promissory estoppel. a. b. c. d. 20. British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton to be shipped from India to England on the ship Peerless, sailing from Bombay." The contract was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless, a Canadian flag ship, that sailed from Bombay in October; seller expected to ship the cotton on another ship called Peerless, an American flag ship, that sailed from Bombay in December. By the time the second ship arrived in England, Broker had found another supplier a a slightly higher price, and refused to accept the cotton. Does manufacturer have any defenses to the breach of contract suit brought by Broker for failure to deliver on time? a. Yes, there was a bilateral mistake of material fact. b. Yes, there was a unilateral mistake of material fact. c. Yes, there was economic duress. d. No, the buyer should have double checked the shipping date 21. If the amount fixed for liquidated damages is unreasonably high, the court will consider it and will not enforce it. a. Tort b. Crime c. Act of extortion d, Blackmail