Question 1

An accord and satisfaction is also referred to as a pre-trial conference.

Accepted Answer

A) True 
 B)False

Question 2

An acceptance is valid only if it indicates acceptance of the exact terms of the offer.

Accepted Answer

A) True 
 B)False

Question 3

If Jennifer receives a catalog in the mail and sees an item she wants priced at $100,because the catalogue is in writing the $100 price is considered an offer which she can accept.

Accepted Answer

A) True 
 B)False

Question 4

Brad offers to sell his house to Vince for $500,000.Vince says that the price is too high and offers to buy the house for $475,000.Brad says no.If Vince then says,"Okay,I accept the offer at $500,000",they have a contract.

Accepted Answer

A) True 
 B)False

Question 5

Charlie is a contractor contacted by Hilda to discuss repairing termite damage to Hilda's home.The damage is so extensive that Charlie doubts the home can be saved.Hilda begs Charlie to try to repair the home.Charlie tells Hilda that he will do the best he can but cannot promise that the he will be successful.He will charge Hilda $60 per hour whether or not he succeeds.Hilda agrees to these terms.Which of the following is true in this situation?

Accepted Answer

A)  This is a best efforts contract properly supported by consideration on both sides. 
B)  This is an illusory promise because Charlie is not obligated to repair the damage. 
C)  The doctrine of promissory estoppel will allow Hilda to recover from Charlie if he fails to repair the damage. 
D)  If Charlie encounters unforeseen difficulties Hilda will not be obligated to pay him. 
E)  This is a requirements contract because it states what each party is required to do. 
A)  This is a best efforts contract properly supported by consideration on both sides. 
B)  This is an illusory promise because Charlie is not obligated to repair the damage. 
C)  The doctrine of promissory estoppel will allow Hilda to recover from Charlie if he fails to repair the damage. 
D)  If Charlie encounters unforeseen difficulties Hilda will not be obligated to pay him. 
E)  This is a requirements contract because it states what each party is required to do.

Question 6

An offeree's acceptance must be:

Accepted Answer

A)  equivocal. 
B)  unequivocal. 
C)  formal. 
D)  conditional. 
E)  in writing. 
A)  equivocal. 
B)  unequivocal. 
C)  formal. 
D)  conditional. 
E)  in writing.

Question 7

A party has given consideration for a contract if that party suffers a legal detriment,even if the other party does not receive a benefit.

Accepted Answer

A) True 
 B)False

Question 8

Offerors can revoke offers by:

Accepted Answer

A)  an express statement that the offer is revoked. 
B)  an act that is inconsistent with the offer remaining open. 
C)  either an express statement that the offer is revoked or an act that is inconsistent with the offer remaining open. 
D)  an express statement that the offer is revoked, but this must be followed by an act that is inconsistent with the offer remaining open. 
E)  Offers cannot be revoked. 
A)  an express statement that the offer is revoked. 
B)  an act that is inconsistent with the offer remaining open. 
C)  either an express statement that the offer is revoked or an act that is inconsistent with the offer remaining open. 
D)  an express statement that the offer is revoked, but this must be followed by an act that is inconsistent with the offer remaining open. 
E)  Offers cannot be revoked.

Question 9

Are advertisements offers?

Accepted Answer

A)  yes, an advertisement is an offer unless there is language indicating that it is not an offer 
B)  yes, all advertisements are offers 
C)  It will always depend on whether the advertisement states that it is or is not an offer. 
D)  no, most advertisements are not offers, although very specific advertisements can be offers 
E)  no, advertisements cannot be offers 
A)  yes, an advertisement is an offer unless there is language indicating that it is not an offer 
B)  yes, all advertisements are offers 
C)  It will always depend on whether the advertisement states that it is or is not an offer. 
D)  no, most advertisements are not offers, although very specific advertisements can be offers 
E)  no, advertisements cannot be offers

Question 10

Which of the following is correct regarding courts' treatment of contracts where certain provisions are omitted from the contract?

Accepted Answer

A)  Courts have always required all material terms to be in the contract and continue to apply that rule today. 
B)  Because of the greater complexity of business and society today, courts are more demanding than in the past that contracts contain all material terms. 
C)  Courts today are more lenient toward contracts with omitted terms and are more willing to use implied terms to fill in the gaps of a contract. 
D)  Because it is the offeror who initially made the offer that was missing the terms, the offeree usually has the power to supply the terms to fill in the gaps in the contract terms. 
E)  Because the offer was made initially by the offeror, the offeror usually has the power to supply the terms to fill in the gaps in the contract terms. 
A)  Courts have always required all material terms to be in the contract and continue to apply that rule today. 
B)  Because of the greater complexity of business and society today, courts are more demanding than in the past that contracts contain all material terms. 
C)  Courts today are more lenient toward contracts with omitted terms and are more willing to use implied terms to fill in the gaps of a contract. 
D)  Because it is the offeror who initially made the offer that was missing the terms, the offeree usually has the power to supply the terms to fill in the gaps in the contract terms. 
E)  Because the offer was made initially by the offeror, the offeror usually has the power to supply the terms to fill in the gaps in the contract terms.

Question 11

Amanda tells her roommate and best friend Brandie,(both are over 21 years old)that she will pay her $1,000 if she gives up smoking for one year.Brandie refrains from smoking for one year,but Amanda feels that she is not required to pay.How would the court decide and why?

Accepted Answer

Yes,Amanda would be obligated to pay.The

Question 12

Generally an offeree must accept an offer by an authorized means of communication.

Accepted Answer

A) True 
 B)False

Question 13

What is the mailbox rule and is it a good rule? What problems are there with it for the offeror and offeree? What happens if an acceptance is sent but gets lost in transit and is never received? What can the offeror do to make her situation better? Are there any effects on the offeree? What can the parties do to reduce these problems?

Accepted Answer

The mailbox rule provides that a properl

Question 14

A preexisting duty can arise out of an existing contract.

Accepted Answer

A) True 
 B)False

Question 15

If Professor Johnson agrees to give up smoking cigars for nine months in exchange for $1,000,Johnson's promise would not be sufficient consideration because if his health improves he is suffering no detriment.

Accepted Answer

A) True 
 B)False

Question 16

Generally,an offer is not effective until it is actually received by the offeree.

Accepted Answer

A) True 
 B)False

Question 17

Another term for "meeting of the minds" is "mutual dissent."

Accepted Answer

A) True 
 B)False

Question 18

On March 1 Susan offers to mow Sam's yard every week through the summer for $35.Sam says that he wants to think about it.Susan says that she will leave the offer open only until March 15.On March 15 Sam drops a letter in the mailbox telling Susan that he accepts her offer.Susan does not receive the acceptance until March 17.On March 16,not having heard from Sam,Susan decides that she is out of the mowing business and sells her mower.When she gets Sam's acceptance,she calls him up and tells him to forget it,Sam did not accept in time,and that she is not mowing.Sam says they have a contract.Who is right under the mailbox rule?

Accepted Answer

A)  Susan is right, because Sam's acceptance was not effective until she received it after March 15. 
B)  Susan is right, but only because she had sold the mower and had no means by which to perform. 
C)  Sam is right, because his acceptance was effective when he placed it in the mailbox. 
D)  Sam is right, because he was unaware that Susan had sold the mower when he placed the acceptance in the mailbox. 
E)  Susan is right, because Sam should have called her by telephone. 
A)  Susan is right, because Sam's acceptance was not effective until she received it after March 15. 
B)  Susan is right, but only because she had sold the mower and had no means by which to perform. 
C)  Sam is right, because his acceptance was effective when he placed it in the mailbox. 
D)  Sam is right, because he was unaware that Susan had sold the mower when he placed the acceptance in the mailbox. 
E)  Susan is right, because Sam should have called her by telephone.

Question 19

A counteroffer by the offeree simultaneously reinstates the offeror's offer and creates a new offer.

Accepted Answer

A) True 
 B)False

Question 20

In an auction,when can the seller reject the highest bid and not sell the item?

Accepted Answer

A)  in an auction with reserve 
B)  in an auction without reserve 
C)  in both auctions with reserve and in auctions without reserve 
D)  in no cases, regardless of the kind of auction 
E)  in an auction with reservations 
A)  in an auction with reserve 
B)  in an auction without reserve 
C)  in both auctions with reserve and in auctions without reserve 
D)  in no cases, regardless of the kind of auction 
E)  in an auction with reservations

Exam 10: Agreement and Consideration

An accord and satisfaction is also referred to as a pre-trial conference.

An acceptance is valid only if it indicates acceptance of the exact terms of the offer.

If Jennifer receives a catalog in the mail and sees an item she wants priced at $100,because the catalogue is in writing the $100 price is considered an offer which she can accept.

Brad offers to sell his house to Vince for $500,000.Vince says that the price is too high and offers to buy the house for $475,000.Brad says no.If Vince then says,"Okay,I accept the offer at $500,000",they have a contract.

An offeree's acceptance must be:

A party has given consideration for a contract if that party suffers a legal detriment,even if the other party does not receive a benefit.

Offerors can revoke offers by:

Are advertisements offers?

Which of the following is correct regarding courts' treatment of contracts where certain provisions are omitted from the contract?

Amanda tells her roommate and best friend Brandie,(both are over 21 years old)that she will pay her $1,000 if she gives up smoking for one year.Brandie refrains from smoking for one year,but Amanda feels that she is not required to pay.How would the court decide and why?

Generally an offeree must accept an offer by an authorized means of communication.

A preexisting duty can arise out of an existing contract.

If Professor Johnson agrees to give up smoking cigars for nine months in exchange for $1,000,Johnson's promise would not be sufficient consideration because if his health improves he is suffering no detriment.

Generally,an offer is not effective until it is actually received by the offeree.

Another term for "meeting of the minds" is "mutual dissent."

A counteroffer by the offeree simultaneously reinstates the offeror's offer and creates a new offer.

In an auction,when can the seller reject the highest bid and not sell the item?

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