Question 1

Generally,a price term can be implied if there is a market or source from which to determine the price of the item or service.

Accepted Answer

A) True 
 B)False

Question 2

If no time is stated in the offer,for how long is an offer open?

Accepted Answer

A)  ten days 
B)  one month 
C)  fourteen days 
D)  six months 
E)  for a reasonable time dictated by the circumstances 
A)  ten days 
B)  one month 
C)  fourteen days 
D)  six months 
E)  for a reasonable time dictated by the circumstances

Question 3

Can silence be considered acceptance of an offer?

Accepted Answer

A)  no, not in any circumstance 
B)  yes, in all circumstances 
C)  yes, in connection with any offer that clearly indicates that silence will be considered acceptance 
D)  In most cases silence cannot be considered acceptance, but there are several situations where silence can be considered acceptance. 
E)  only if the parties have no express agreement that silence cannot be considered acceptance 
A)  no, not in any circumstance 
B)  yes, in all circumstances 
C)  yes, in connection with any offer that clearly indicates that silence will be considered acceptance 
D)  In most cases silence cannot be considered acceptance, but there are several situations where silence can be considered acceptance. 
E)  only if the parties have no express agreement that silence cannot be considered acceptance

Question 4

A(n)________ by the offeree simultaneously terminates the offeror's offer and creates a new offer.

Accepted Answer

A)  conditional offer 
B)  formal offer 
C)  informal offer 
D)  counteroffer 
E)  acceptance 
A)  conditional offer 
B)  formal offer 
C)  informal offer 
D)  counteroffer 
E)  acceptance

Question 5

Since contract law applies a "reasonable person standard," an agreement does not require a "meeting of minds" of the parties.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following does not terminate an offer by operation of law?

Accepted Answer

A)  destruction of the subject matter 
B)  death or incompetency of the offeror or offeree 
C)  supervening illegality 
D)  lapse of time 
E)  Destruction of the subject matter, death or incompetency of the offeror or offeree, supervening illegality, or lapse of time will terminate an offer by operation of law. 
A)  destruction of the subject matter 
B)  death or incompetency of the offeror or offeree 
C)  supervening illegality 
D)  lapse of time 
E)  Destruction of the subject matter, death or incompetency of the offeror or offeree, supervening illegality, or lapse of time will terminate an offer by operation of law.

Question 7

If you promise to keep an offer open until 4:00 p.m.and no consideration is exchanged when the offer is made,that offer may not be revoked prior to 4:00 p.m.

Accepted Answer

A) True 
 B)False

Question 8

Revocation may be made by the offeror's express statement,or an act of the offeror that is inconsistent with the offer.

Accepted Answer

A) True 
 B)False

Question 9

There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer.Buyer says to Seller,"I would like to buy 100 additional units at the same price." Seller responds,"We promise to sell you the 100 extra units if we decide not to sell them to other customers." What is true regarding only the sale of the extra 100 units?

Accepted Answer

A)  There is no consideration due to an illusory promise. 
B)  There is no consideration due to a preexisting duty. 
C)  There is no consideration due to a past consideration. 
D)  There is consideration due to promissory estoppel. 
E)  There is consideration due to a legal detriment on both sides. 
A)  There is no consideration due to an illusory promise. 
B)  There is no consideration due to a preexisting duty. 
C)  There is no consideration due to a past consideration. 
D)  There is consideration due to promissory estoppel. 
E)  There is consideration due to a legal detriment on both sides.

Question 10

The common law of contracts requires an exact specification of contract terms.

Accepted Answer

A) True 
 B)False

Question 11

Two friends,Ann and Mary,are having Margaritas at happy hour.There had been no discussion of who would pay for the drinks.After the third round of drinks,Ann said,"I will pay for everything tonight including your drinks." A couple of minutes later before any more drinks were ordered,Ann says,"I've changed my mind.I just remembered that they might be having layoffs at my toxic job tomorrow." Mary wants to force Ann to perform on her promise and threatens to sue.In this circumstance a court would:

Accepted Answer

A)  not require Ann to follow through on the promise because it was a gratuitous promise. 
B)  require Ann to follow through on the promise under the doctrine of promissory estoppel. 
C)  require Ann to follow through on the promise if Mary had previously paid a comparable amount for food or drinks consumed by Ann. 
D)  require Ann to follow through on the promise if it would be a hardship for Mary to pay for her own drinks. 
E)  not require Ann to follow through on the promise because it would encourage Mary to drink. 
A)  not require Ann to follow through on the promise because it was a gratuitous promise. 
B)  require Ann to follow through on the promise under the doctrine of promissory estoppel. 
C)  require Ann to follow through on the promise if Mary had previously paid a comparable amount for food or drinks consumed by Ann. 
D)  require Ann to follow through on the promise if it would be a hardship for Mary to pay for her own drinks. 
E)  not require Ann to follow through on the promise because it would encourage Mary to drink.

Question 12

Which of the following will not generally automatically terminate an open offer?

Accepted Answer

A)  the death of the offeror 
B)  the death of the offeree 
C)  changed economic circumstances 
D)  destruction of the subject matter of the contract 
E)  supervening illegality of the object of the contract 
A)  the death of the offeror 
B)  the death of the offeree 
C)  changed economic circumstances 
D)  destruction of the subject matter of the contract 
E)  supervening illegality of the object of the contract

Question 13

If the time an offer remains open is not specified,it remains open until revoked by the offeror.

Accepted Answer

A) True 
 B)False

Question 14

The words "agreement" and "________ " are often used interchangeably.

Accepted Answer

A)  invitation to negotiate 
B)  offer 
C)  acceptance 
D)  contract 
E)  solicitation 
A)  invitation to negotiate 
B)  offer 
C)  acceptance 
D)  contract 
E)  solicitation

Question 15

An offer that is made to two (2)or more persons jointly may be accepted by either person.

Accepted Answer

A) True 
 B)False

Question 16

The parties or subject matter of the contract usually cannot be implied if an item or a service is unique or personal.

Accepted Answer

A) True 
 B)False

Question 17

The intent to enter into a contract is determined using the subjective theory of contracts.

Accepted Answer

A) True 
 B)False

Question 18

Unless otherwise expressly stated,an auction is considered an auction without reserve.

Accepted Answer

A) True 
 B)False

Question 19

An offer expires at the lapse of time of an offer.

Accepted Answer

A) True 
 B)False

Question 20

Gift promises are also called ________ promises

Accepted Answer

A)  socialistic 
B)  Good Samaritan 
C)  gratuitous 
D)  enforceable 
E)  contractual 
A)  socialistic 
B)  Good Samaritan 
C)  gratuitous 
D)  enforceable 
E)  contractual

Exam 10: Agreement and Consideration

Generally,a price term can be implied if there is a market or source from which to determine the price of the item or service.

If no time is stated in the offer,for how long is an offer open?

Can silence be considered acceptance of an offer?

A(n)________ by the offeree simultaneously terminates the offeror's offer and creates a new offer.

Since contract law applies a "reasonable person standard," an agreement does not require a "meeting of minds" of the parties.

Which of the following does not terminate an offer by operation of law?

If you promise to keep an offer open until 4:00 p.m.and no consideration is exchanged when the offer is made,that offer may not be revoked prior to 4:00 p.m.

Revocation may be made by the offeror's express statement,or an act of the offeror that is inconsistent with the offer.

The common law of contracts requires an exact specification of contract terms.

Which of the following will not generally automatically terminate an open offer?

If the time an offer remains open is not specified,it remains open until revoked by the offeror.

The words "agreement" and "________ " are often used interchangeably.

An offer that is made to two (2)or more persons jointly may be accepted by either person.

The parties or subject matter of the contract usually cannot be implied if an item or a service is unique or personal.

The intent to enter into a contract is determined using the subjective theory of contracts.

Unless otherwise expressly stated,an auction is considered an auction without reserve.

An offer expires at the lapse of time of an offer.

Gift promises are also called ________ promises

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