Question 1

In an auction with reserve,a contract is formed only when the auctioneer strikes the gavel down or indicates acceptance by some other means.

Accepted Answer

A) True 
 B)False

Question 2

When parties agree to settle a legitimate dispute over an existing contract,the agreement to settle the dispute will meet the consideration requirements even if no new consideration is paid.

Accepted Answer

A) True 
 B)False

Question 3

On a Monday,Josh,the owner of a restaurant,tells Betty the baker that he might need a shipment of buns on Friday but he's not sure.He tells her that if she doesn't hear from him by noon on Thursday,she should deliver the buns on Friday.Receiving no word on Thursday,Betty delivers her buns on Friday.Which of the following is correct?

Accepted Answer

A)  A bilateral contract was formed the moment they talked on Monday. 
B)  A contract was formed by Josh's silence. 
C)  A contract was never formed, because silence can never be an acceptance. 
D)  A unilateral contract was formed when Betty delivered the buns on Friday. 
E)  The contract was executed on Thursday when Betty did not hear from Josh. 
A)  A bilateral contract was formed the moment they talked on Monday. 
B)  A contract was formed by Josh's silence. 
C)  A contract was never formed, because silence can never be an acceptance. 
D)  A unilateral contract was formed when Betty delivered the buns on Friday. 
E)  The contract was executed on Thursday when Betty did not hear from Josh.

Question 4

With a counteroffer,the previous offeree becomes the new offeror,and the previous offeror becomes the new offeree.

Accepted Answer

A) True 
 B)False

Question 5

An acceptance must be clear,ambiguous,and have only one (1)possible meaning.

Accepted Answer

A) True 
 B)False

Question 6

An offer may be terminated by operation of law,but not by the actions of the parties.

Accepted Answer

A) True 
 B)False

Question 7

An accord is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

Accepted Answer

A) True 
 B)False

Question 8

What is the "accord" in an accord and satisfaction under contract law?

Accepted Answer

A)  any agreement that has been fully performed 
B)  an agreement made in order to settle a dispute of an earlier contract that is not valid because the terms of the earlier contract will control 
C)  an agreement made in order to settle a dispute of an earlier contract that eliminates all legal effect of the earlier contract upon the accord's formation 
D)  an agreement made to correct an illusory promise made in a contract 
E)  an agreement made in order to settle a dispute of an earlier contract that, if not satisfied, allows a lawsuit to enforce either the original contract or the accord 
A)  any agreement that has been fully performed 
B)  an agreement made in order to settle a dispute of an earlier contract that is not valid because the terms of the earlier contract will control 
C)  an agreement made in order to settle a dispute of an earlier contract that eliminates all legal effect of the earlier contract upon the accord's formation 
D)  an agreement made to correct an illusory promise made in a contract 
E)  an agreement made in order to settle a dispute of an earlier contract that, if not satisfied, allows a lawsuit to enforce either the original contract or the accord

Question 9

If an offeree gives a rejection to the offeror,which of the following is true at that point?

Accepted Answer

A)  The offeree is still able to accept the original offer until its original expiration time. 
B)  The offeree has made a counteroffer. 
C)  The offeree cannot later enter into a contract on the terms of the rejected offer. 
D)  The offeree can transfer the rejected offer to a new party, who becomes the new offeree. 
E)  The offeree has lost the ability to accept the original offer. 
A)  The offeree is still able to accept the original offer until its original expiration time. 
B)  The offeree has made a counteroffer. 
C)  The offeree cannot later enter into a contract on the terms of the rejected offer. 
D)  The offeree can transfer the rejected offer to a new party, who becomes the new offeree. 
E)  The offeree has lost the ability to accept the original offer.

Question 10

An offer cannot be accepted if it is not communicated to the offeree by the offeror or a representative or an agent of the offeror.

Accepted Answer

A) True 
 B)False

Question 11

The mailbox rule provides that an acceptance sent through the mail is effective only when it reaches the offeror's mailbox.

Accepted Answer

A) True 
 B)False

Question 12

Robert is about to graduate from college and his parents tell him that because he is the first member of the family to graduate college,they want to buy him a new but inexpensive car.They have the money to buy the car and Robert is excited.In fact,Robert has never owned a car and this will be his first.On graduation day,his parents tell him that they have decided to use the car money for a vacation and there will be no car.If Robert chooses to sue his parents,will he be successful in the litigation?

Accepted Answer

A)  Robert can successfully sue based on promissory estoppel. 
B)  Robert can successfully sue based on the promise of a gift. 
C)  Robert cannot successfully sue because he did not rely to his detriment on the promise. 
D)  Robert cannot successfully sue because the promise was not reasonable. 
E)  Robert can sue his parents for the value of the car because their promise was never revoked. 
A)  Robert can successfully sue based on promissory estoppel. 
B)  Robert can successfully sue based on the promise of a gift. 
C)  Robert cannot successfully sue because he did not rely to his detriment on the promise. 
D)  Robert cannot successfully sue because the promise was not reasonable. 
E)  Robert can sue his parents for the value of the car because their promise was never revoked.

Question 13

In an auction with reserve,the seller is the offeror,and the bidders are the offerees.

Accepted Answer

A) True 
 B)False

Question 14

For the doctrine of promissory estoppels to apply,there must be a contract with adequate consideration.

Accepted Answer

A) True 
 B)False

Question 15

In general,an offeror can revoke an offer:

Accepted Answer

A)  only for a reasonable time after the offer is made. 
B)  at any time before the offer has been accepted. 
C)  before the offer has been accepted, and for a reasonable time after its acceptance. 
D)  at any time before or after the offer's acceptance. 
E)  only when the offeree agrees to the offer's revocation. 
A)  only for a reasonable time after the offer is made. 
B)  at any time before the offer has been accepted. 
C)  before the offer has been accepted, and for a reasonable time after its acceptance. 
D)  at any time before or after the offer's acceptance. 
E)  only when the offeree agrees to the offer's revocation.

Question 16

Bob was tired of his roommate,John,talking big but taking no action.Bob decided to see if John would agree to buy his Mazda Miata,even though he (Bob)had no intention to actually sell it.Bob told John that he would sell the car for $16,000 and John agreed to buy it.Can John force Bob to sell the car to him for the $16,000?

Accepted Answer

If a reasonable person would think that

Question 17

Because of the communication requirement,silence can never create a valid acceptance.

Accepted Answer

A) True 
 B)False

Question 18

A counteroffer terminates the existing offer.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement and Consideration

In an auction with reserve,a contract is formed only when the auctioneer strikes the gavel down or indicates acceptance by some other means.

When parties agree to settle a legitimate dispute over an existing contract,the agreement to settle the dispute will meet the consideration requirements even if no new consideration is paid.

With a counteroffer,the previous offeree becomes the new offeror,and the previous offeror becomes the new offeree.

An acceptance must be clear,ambiguous,and have only one (1)possible meaning.

An offer may be terminated by operation of law,but not by the actions of the parties.

An accord is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

What is the "accord" in an accord and satisfaction under contract law?

If an offeree gives a rejection to the offeror,which of the following is true at that point?

An offer cannot be accepted if it is not communicated to the offeree by the offeror or a representative or an agent of the offeror.

The mailbox rule provides that an acceptance sent through the mail is effective only when it reaches the offeror's mailbox.

In an auction with reserve,the seller is the offeror,and the bidders are the offerees.

For the doctrine of promissory estoppels to apply,there must be a contract with adequate consideration.

In general,an offeror can revoke an offer:

Because of the communication requirement,silence can never create a valid acceptance.

A counteroffer terminates the existing offer.

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