Question 1

Consideration that is exchanged after mutual assent to the present contract is called past consideration.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would terminate an offer?

Accepted Answer

A)  a revocation by the offeror 
B)  a rejection by the offeree 
C)  a counteroffer by the offeree 
D)  a revocation or a rejection by the offeree 
E)  a revocation by the offeror, a rejection by the offeree, or a counteroffer by the offeree 
A)  a revocation by the offeror 
B)  a rejection by the offeree 
C)  a counteroffer by the offeree 
D)  a revocation or a rejection by the offeree 
E)  a revocation by the offeror, a rejection by the offeree, or a counteroffer by the offeree

Question 3

Which of the following is true about an offer made that does not contain an expiration time?

Accepted Answer

A)  It will remain open indefinitely. 
B)  It can be terminated only by an order of the court. 
C)  The offeror loses the ability to revoke it. 
D)  It will expire after the passage of a reasonable period of time. 
E)  The offeree is unable to make a counteroffer. 
A)  It will remain open indefinitely. 
B)  It can be terminated only by an order of the court. 
C)  The offeror loses the ability to revoke it. 
D)  It will expire after the passage of a reasonable period of time. 
E)  The offeree is unable to make a counteroffer.

Question 4

In the process of forming a contract,who generally has the power to create the contract?

Accepted Answer

A)  the offeror, in making the offer 
B)  the offeror, but only after the offeree has received the offer 
C)  the offeree, once the offer has been received 
D)  the court, once the offer has been received by the offeree 
E)  the offeror, by confirming the acceptance of the offeree 
A)  the offeror, in making the offer 
B)  the offeror, but only after the offeree has received the offer 
C)  the offeree, once the offer has been received 
D)  the court, once the offer has been received by the offeree 
E)  the offeror, by confirming the acceptance of the offeree

Question 5

What role does a party's subjective intent relative to the intent to form a contract play?

Accepted Answer

A)  It determines whether an offer has been made. 
B)  It determines whether an offer is definite. 
C)  It determines whether a contract has come into existence. 
D)  It determines whether an offeree's acceptance is valid. 
E)  It is irrelevant. 
A)  It determines whether an offer has been made. 
B)  It determines whether an offer is definite. 
C)  It determines whether a contract has come into existence. 
D)  It determines whether an offeree's acceptance is valid. 
E)  It is irrelevant.

Question 6

What does the mailbox rule provide?

Accepted Answer

A)  that an acceptance must be mailed in order to be effective 
B)  that most contracting must be conducted through the mail 
C)  that an acceptance is not effective until it reaches the mailbox of the offeror 
D)  that a properly dispatched acceptance is effective when sent, even if it does not reach its destination 
E)  that all communications in connection with contract formation are effective when sent, so long as they are properly dispatched 
A)  that an acceptance must be mailed in order to be effective 
B)  that most contracting must be conducted through the mail 
C)  that an acceptance is not effective until it reaches the mailbox of the offeror 
D)  that a properly dispatched acceptance is effective when sent, even if it does not reach its destination 
E)  that all communications in connection with contract formation are effective when sent, so long as they are properly dispatched

Question 7

A supervening illegality of the object of a contract occurs in which of the following circumstances?

Accepted Answer

A)  the illegality existed when the offer was made 
B)  the object of the contract is illegal where made, but would be legal in another location 
C)  the object of the contract was legal when the offer was made, but has subsequently become illegal 
D)  the offeror had an honest and reasonable belief that the object of the contract was legal when the offer was made, but later learned that the offer was illegal 
E)  the object of the contract was illegal when made, but has subsequently become legal 
A)  the illegality existed when the offer was made 
B)  the object of the contract is illegal where made, but would be legal in another location 
C)  the object of the contract was legal when the offer was made, but has subsequently become illegal 
D)  the offeror had an honest and reasonable belief that the object of the contract was legal when the offer was made, but later learned that the offer was illegal 
E)  the object of the contract was illegal when made, but has subsequently become legal

Question 8

In order to meet the consideration requirement,the legal detriment suffered by each party must have been given in exchange for that of the other party.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true?

Accepted Answer

A)  Past consideration is sufficient legal consideration to enforce an agreement. 
B)  Contracts based on a party's past consideration are unenforceable unless some new consideration is given to support the contract. 
C)  Contracts based on a party's past consideration are known as illusory contracts. 
D)  Contracts based on a party's past consideration are generally enforceable on the grounds of moral obligation. 
E)  Contracts based on a party's past consideration are known as quasi-contracts. 
A)  Past consideration is sufficient legal consideration to enforce an agreement. 
B)  Contracts based on a party's past consideration are unenforceable unless some new consideration is given to support the contract. 
C)  Contracts based on a party's past consideration are known as illusory contracts. 
D)  Contracts based on a party's past consideration are generally enforceable on the grounds of moral obligation. 
E)  Contracts based on a party's past consideration are known as quasi-contracts.

Question 10

According to the mailbox rule,acceptance is effective when it is dispatched,even if it is lost in the transmission.

Accepted Answer

A) True 
 B)False

Question 11

Contracts based on illegal consideration are ________.

Accepted Answer

A)  executory 
B)  executed 
C)  void 
D)  voidable 
E)  conditionally enforceable 
A)  executory 
B)  executed 
C)  void 
D)  voidable 
E)  conditionally enforceable

Question 12

On May 1st, Bob offers to sell his car to Carol. Carol tells him that she'll need a few days to decide. He says that he'll give her till May 3rd. On May 2nd, Bob sells the car to Ted and Alice. On May 2nd Carol sees Ted and Alice who inform her about their purchase. On May 3rd Carol calls Bob to accept. Which of the following is correct?

Accepted Answer

A)  A contract was formed between Bob and Carol on May 1st. 
B)  A contract was formed between Bob and Carol on May 3rd. 
C)  Bob was required to wait until May 3rd before selling the car. 
D)  Carol could enforce the contract based on promissory estoppel. 
E)  Bob and Carol have no contract. 
A)  A contract was formed between Bob and Carol on May 1st. 
B)  A contract was formed between Bob and Carol on May 3rd. 
C)  Bob was required to wait until May 3rd before selling the car. 
D)  Carol could enforce the contract based on promissory estoppel. 
E)  Bob and Carol have no contract.

Question 13

The concept of consideration is that the parties to a contract should carefully consider the contract's terms before they decide to enter into the agreement.

Accepted Answer

A) True 
 B)False

Question 14

If an offer is made individually to two (2)or more persons,each has the power to accept the offer.

Accepted Answer

A) True 
 B)False

Question 15

A contract can be formed:

Accepted Answer

A)  from an offer made in anger. 
B)  from an offer made in jest. 
C)  as a result of preliminary negotiations. 
D)  as a result of an expression of opinion. 
E)  A contract cannot be formed from an offer made in anger, from an offer made in jest, as a result of preliminary negotiations, or as a result of an expression of opinion. 
A)  from an offer made in anger. 
B)  from an offer made in jest. 
C)  as a result of preliminary negotiations. 
D)  as a result of an expression of opinion. 
E)  A contract cannot be formed from an offer made in anger, from an offer made in jest, as a result of preliminary negotiations, or as a result of an expression of opinion.

Question 16

Aimee is a 17-year-old college student.Her parents are worried about her being away from home so they tell her that if she goes both the fall and spring semesters without drinking alcohol,they will buy her a new car.If Aimee does in fact go both semesters without drinking:

Accepted Answer

A)  Aimee gets the car because she performed exactly as required under her parents offer. 
B)  Aimee gets the car because a quasi-contract is formed due to her parents unjust enrichment. 
C)  Aimee is not entitled to the car because her benefit far outweighed her detriment. 
D)  Aimee is not entitled to the car because she suffered no detriment. 
E)  Aimee gets the care based on promissory estoppel. 
A)  Aimee gets the car because she performed exactly as required under her parents offer. 
B)  Aimee gets the car because a quasi-contract is formed due to her parents unjust enrichment. 
C)  Aimee is not entitled to the car because her benefit far outweighed her detriment. 
D)  Aimee is not entitled to the car because she suffered no detriment. 
E)  Aimee gets the care based on promissory estoppel.

Question 17

In a(n)________ the seller is the offeror,and the bidders are the offerees.

Accepted Answer

A)  auction with reserve 
B)  auction without reserve 
C)  unilateral contract 
D)  bilateral contract 
E)  executory contract 
A)  auction with reserve 
B)  auction without reserve 
C)  unilateral contract 
D)  bilateral contract 
E)  executory contract

Question 18

Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

Accepted Answer

A) True 
 B)False

Question 19

It is generally held that the courts will not look into the adequacy of consideration.What does this mean and why would the courts not be concerned with adequacy?

Accepted Answer

Adequacy of consideration has to do with

Question 20

An advertisement is considered an offer if it is so definite or specific that it is apparent that the advertiser has the present intent to bind himself or herself to the terms of the advertisement.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement and Consideration

Consideration that is exchanged after mutual assent to the present contract is called past consideration.

Which of the following would terminate an offer?

Which of the following is true about an offer made that does not contain an expiration time?

In the process of forming a contract,who generally has the power to create the contract?

What role does a party's subjective intent relative to the intent to form a contract play?

What does the mailbox rule provide?

A supervening illegality of the object of a contract occurs in which of the following circumstances?

In order to meet the consideration requirement,the legal detriment suffered by each party must have been given in exchange for that of the other party.

Which of the following is true?

According to the mailbox rule,acceptance is effective when it is dispatched,even if it is lost in the transmission.

Contracts based on illegal consideration are ________.

The concept of consideration is that the parties to a contract should carefully consider the contract's terms before they decide to enter into the agreement.

If an offer is made individually to two (2)or more persons,each has the power to accept the offer.

A contract can be formed:

Aimee is a 17-year-old college student.Her parents are worried about her being away from home so they tell her that if she goes both the fall and spring semesters without drinking alcohol,they will buy her a new car.If Aimee does in fact go both semesters without drinking:

In a(n)________ the seller is the offeror,and the bidders are the offerees.

Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

It is generally held that the courts will not look into the adequacy of consideration.What does this mean and why would the courts not be concerned with adequacy?

An advertisement is considered an offer if it is so definite or specific that it is apparent that the advertiser has the present intent to bind himself or herself to the terms of the advertisement.

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