Question 1

If an offeror makes an offer to an offeree by letter and it is lost in the mail,no legally sufficient offer has been made.

Accepted Answer

A) True 
 B)False

Question 2

An offer can be communicated by words or by conduct.

Accepted Answer

A) True 
 B)False

Question 3

An offer is effective as soon as it is dispatched.

Accepted Answer

A) True 
 B)False

Question 4

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

Accepted Answer

A)  An implied in fact contract has been formed. 
B)  A unilateral contract has been formed. 
C)  This is a formal contract. 
D)  This is an option contract. 
A)  An implied in fact contract has been formed. 
B)  A unilateral contract has been formed. 
C)  This is a formal contract. 
D)  This is an option contract.

Question 5

If an offer asks for acceptance by mail and the offeree faxes his acceptance:

Accepted Answer

A)  there is no contract,and the offer is revoked. 
B)  there is a contract if the acceptance is actually received within the time the authorized means would have arrived. 
C)  the acceptance is merely a counteroffer. 
D)  there is a contract,but only if the offeree calls the offeror and gets permission to fax the acceptance. 
A)  there is no contract,and the offer is revoked. 
B)  there is a contract if the acceptance is actually received within the time the authorized means would have arrived. 
C)  the acceptance is merely a counteroffer. 
D)  there is a contract,but only if the offeree calls the offeror and gets permission to fax the acceptance.

Question 6

Which of the following would NOT be a merchant under Article 2 of the UCC?

Accepted Answer

A)  The owner of a hardware store which sells paint 
B)  A car mechanic who fixes used cars and sells them in his spare time 
C)  A person who inherits three speedboats and wants to sell them to buy a car 
D)  None of these are merchants. 
A)  The owner of a hardware store which sells paint 
B)  A car mechanic who fixes used cars and sells them in his spare time 
C)  A person who inherits three speedboats and wants to sell them to buy a car 
D)  None of these are merchants.

Question 7

On June 1,a civic club made an offer of $500 to a beer distributor to have six kegs delivered to the city park for a July 4th fund-raising event.On June 30,the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

Accepted Answer

A) True 
 B)False

Question 8

If Bill tells Sara that he will give her two days to decide if she wants to buy his car,he cannot sell it to anyone else during that time.

Accepted Answer

A) True 
 B)False

Question 9

The UCC Battle of the Forms rule:

Accepted Answer

A)  changes the mirror image rule. 
B)  may yield different results depending on whether the parties are merchants. 
C)  may result in formation of a contract different from the terms of the offer. 
D)  All of these. 
A)  changes the mirror image rule. 
B)  may yield different results depending on whether the parties are merchants. 
C)  may result in formation of a contract different from the terms of the offer. 
D)  All of these.

Question 10

If the offer specifies it MUST be accepted by telegram,a letter will not be a valid means of acceptance.

Accepted Answer

A) True 
 B)False

Question 11

There is no necessity to distinguish language which constitutes an offer from that which merely solicits or invites offers.

Accepted Answer

A) True 
 B)False

Question 12

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

Accepted Answer

A)  firm offer if made by a merchant. 
B)  offer if made by a merchant,but not a firm offer. 
C)  offer irrespective of who made the offer. 
D)  invitation to buyers to make an offer to buy goods. 
A)  firm offer if made by a merchant. 
B)  offer if made by a merchant,but not a firm offer. 
C)  offer irrespective of who made the offer. 
D)  invitation to buyers to make an offer to buy goods.

Question 13

If no time limit is stated,an offer will not terminate until both parties agree.

Accepted Answer

A) True 
 B)False

Question 14

Which is an irrevocable offer?

Accepted Answer

A)  A bid to construct a bridge for the city 
B)  An offer to buy stock in the ABC Corporation once it is formed 
C)  A unilateral offer to pay John $30 to mow your lawn at the point that he has completed half the job and indicates he wishes to finish 
D)  All of these. 
A)  A bid to construct a bridge for the city 
B)  An offer to buy stock in the ABC Corporation once it is formed 
C)  A unilateral offer to pay John $30 to mow your lawn at the point that he has completed half the job and indicates he wishes to finish 
D)  All of these.

Question 15

Humberto writes to Stan asking if Stan will buy his cultivator for $600.Humberto's question:

Accepted Answer

A)  if answered in the affirmative by Stan,creates a contract. 
B)  indicates merely a willingness to enter into negotiation rather than a willingness to enter into a contract. 
C)  is a definite and certain offer communicated to an offeree. 
D)  is subject to the mirror image rule. 
A)  if answered in the affirmative by Stan,creates a contract. 
B)  indicates merely a willingness to enter into negotiation rather than a willingness to enter into a contract. 
C)  is a definite and certain offer communicated to an offeree. 
D)  is subject to the mirror image rule.

Question 16

When does acceptance of an offer to enter into a unilateral contract generally occur?

Accepted Answer

A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror with the intention of accepting. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree with the intention of accepting. 
A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror with the intention of accepting. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree with the intention of accepting.

Question 17

An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.

Accepted Answer

A) True 
 B)False

Question 18

Jesse makes an offer to Ike,and Ike accepts;then the state legislature passes a law that makes performance of the contract illegal.What is the effect of the new statute on the contract?

Accepted Answer

A)  The contract is severed;any portions that are legal must still be performed and any portions that have been made illegal must not be performed. 
B)  The statute has no effect on the contract. 
C)  The statute acts as a condition on the contract. 
D)  The statute discharges the obligations of both parties under the contract. 
A)  The contract is severed;any portions that are legal must still be performed and any portions that have been made illegal must not be performed. 
B)  The statute has no effect on the contract. 
C)  The statute acts as a condition on the contract. 
D)  The statute discharges the obligations of both parties under the contract.

Question 19

In general,which of the following will not terminate an offer?

Accepted Answer

A)  The death of the offeree 
B)  The death of the offeror 
C)  An inquiry by the offeree as to size or materials 
D)  An acceptance that adds a material term 
A)  The death of the offeree 
B)  The death of the offeror 
C)  An inquiry by the offeree as to size or materials 
D)  An acceptance that adds a material term

Question 20

Gary mails an offer to Brian on June 15.Brian receives the offer on June 16.Gary mails a revocation of the offer on June 17.Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20.Brian receives the revocation on June 19.Was a contract formed?

Accepted Answer

A)  Yes,on June 16 
B)  Yes,on June 18 
C)  Yes,on June 20 
D)  No,the offer was revoked before acceptance 
A)  Yes,on June 16 
B)  Yes,on June 18 
C)  Yes,on June 20 
D)  No,the offer was revoked before acceptance

Exam 10: Mutual Assent

If an offeror makes an offer to an offeree by letter and it is lost in the mail,no legally sufficient offer has been made.

An offer can be communicated by words or by conduct.

An offer is effective as soon as it is dispatched.

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

If an offer asks for acceptance by mail and the offeree faxes his acceptance:

Which of the following would NOT be a merchant under Article 2 of the UCC?

On June 1,a civic club made an offer of $500 to a beer distributor to have six kegs delivered to the city park for a July 4th fund-raising event.On June 30,the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

If Bill tells Sara that he will give her two days to decide if she wants to buy his car,he cannot sell it to anyone else during that time.

The UCC Battle of the Forms rule:

If the offer specifies it MUST be accepted by telegram,a letter will not be a valid means of acceptance.

There is no necessity to distinguish language which constitutes an offer from that which merely solicits or invites offers.

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

If no time limit is stated,an offer will not terminate until both parties agree.

Which is an irrevocable offer?

Humberto writes to Stan asking if Stan will buy his cultivator for $600.Humberto's question:

When does acceptance of an offer to enter into a unilateral contract generally occur?

An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.

Jesse makes an offer to Ike,and Ike accepts;then the state legislature passes a law that makes performance of the contract illegal.What is the effect of the new statute on the contract?

In general,which of the following will not terminate an offer?

Gary mails an offer to Brian on June 15.Brian receives the offer on June 16.Gary mails a revocation of the offer on June 17.Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20.Brian receives the revocation on June 19.Was a contract formed?

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms