Question 1

Which of the following is true for an auction without reserve?

Accepted Answer

A) The bidder is considered the offeror. 
B) The seller need not accept the highest bid. 
C) The goods on sale cannot be withdrawn. 
D) The auctioneer is not allowed to set a minimum bid. 
A) The bidder is considered the offeror. 
B) The seller need not accept the highest bid. 
C) The goods on sale cannot be withdrawn. 
D) The auctioneer is not allowed to set a minimum bid. C

Question 2

An unequivocal acceptance must not contain conditions or exceptions.

Accepted Answer

A) True 
 B)False  True

Question 3

An invitation to make an offer or an actual offer is referred to as a(n)________.

Accepted Answer

A) proposal 
B) reward 
C) advertisement 
D) bid 
A) proposal 
B) reward 
C) advertisement 
D) bid C

Question 4

How can an offeror revoke an offer?

Accepted Answer

Under the common law, an offeror may rev

Question 5

An offer terminates upon the expiration of a stated time in the offer.

Accepted Answer

A) True 
 B)False

Question 6

An offer is terminated on the grounds of "lapse of time" if ________.

Accepted Answer

A) the offeror dies before the offeree has accepted the offer 
B) the offer is not communicated to the offeree 
C) the offeror has communicated to the offeree a set time which is not mentioned in the offer 
D) the offer is not accepted within a stated time period 
A) the offeror dies before the offeree has accepted the offer 
B) the offer is not communicated to the offeree 
C) the offeror has communicated to the offeree a set time which is not mentioned in the offer 
D) the offer is not accepted within a stated time period

Question 7

If no time is stated in an offer, then the offer stays valid indefinitely.

Accepted Answer

A) True 
 B)False

Question 8

If a fire destroys an office building that has been listed for sale, the offer is automatically terminated due to ________.

Accepted Answer

A) supervening illegality 
B) death or incompetency of the offeror 
C) destruction of the subject matter 
D) lapse of time 
A) supervening illegality 
B) death or incompetency of the offeror 
C) destruction of the subject matter 
D) lapse of time

Question 9

The ________ states that an acceptance is effective when it is dispatched, even if it is lost in transmission.

Accepted Answer

A) rule of silence as acceptance 
B) mirror image rule 
C) mailbox rule 
D) mutual assent rule 
A) rule of silence as acceptance 
B) mirror image rule 
C) mailbox rule 
D) mutual assent rule

Question 10

In auction without reserve, the seller is the offeree.

Accepted Answer

A) True 
 B)False

Question 11

A reward is a form of bilateral contract.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following contradicts the mirror image rule?

Accepted Answer

A) silence as acceptance 
B) option contract 
C) counteroffer 
D) acceptance-upon-dispatch 
A) silence as acceptance 
B) option contract 
C) counteroffer 
D) acceptance-upon-dispatch

Question 13

An offer is terminated if the subject matter of the offer is destroyed.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true for legally claiming a reward?

Accepted Answer

A) A promise of completing the requested act is sufficient for a claimant to claim the reward. 
B) Knowledge of the reward before completing the requested act is necessary to claim the reward. 
C) The claimant can claim the reward even if he or she came to know of the reward subsequent to completing the act. 
D) The offeror cannot withdraw the reward once the offer has been placed in the public domain. 
A) A promise of completing the requested act is sufficient for a claimant to claim the reward. 
B) Knowledge of the reward before completing the requested act is necessary to claim the reward. 
C) The claimant can claim the reward even if he or she came to know of the reward subsequent to completing the act. 
D) The offeror cannot withdraw the reward once the offer has been placed in the public domain.

Question 15

Bilateral contracts is accepted only upon the offeree's performance of the required act.

Accepted Answer

A) True 
 B)False

Question 16

A rejection of an offer is not effective until it is actually received by the offeror.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true about a counteroffer?

Accepted Answer

A) An offeree that makes the counteroffer is still considered the offeree. 
B) A counteroffer terminates the existing offer. 
C) A counteroffer can only be made by the offeror. 
D) A counteroffer need not be communicated to the offeror. 
A) An offeree that makes the counteroffer is still considered the offeree. 
B) A counteroffer terminates the existing offer. 
C) A counteroffer can only be made by the offeror. 
D) A counteroffer need not be communicated to the offeror.

Question 18

To meet the mirror image rule, the offeree must accept the terms of the offer without modification.

Accepted Answer

A) True 
 B)False

Question 19

The mirror image rule states that ________.

Accepted Answer

A) the offeree's counteroffer should match the value of the offeror's offer 
B) the offeree is allowed to modify the terms of the offer 
C) the offeror can modify the terms of the offer even after the offeree has accepted it 
D) the offeree must accept the terms as stated in the offer 
A) the offeree's counteroffer should match the value of the offeror's offer 
B) the offeree is allowed to modify the terms of the offer 
C) the offeror can modify the terms of the offer even after the offeree has accepted it 
D) the offeree must accept the terms as stated in the offer

Question 20

An offer is not effective until it is actually received by the offeree.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement

Which of the following is true for an auction without reserve?

An unequivocal acceptance must not contain conditions or exceptions.

An invitation to make an offer or an actual offer is referred to as a(n)________.

How can an offeror revoke an offer?

An offer terminates upon the expiration of a stated time in the offer.

An offer is terminated on the grounds of "lapse of time" if ________.

If no time is stated in an offer, then the offer stays valid indefinitely.

If a fire destroys an office building that has been listed for sale, the offer is automatically terminated due to ________.

The ________ states that an acceptance is effective when it is dispatched, even if it is lost in transmission.

In auction without reserve, the seller is the offeree.

A reward is a form of bilateral contract.

Which of the following contradicts the mirror image rule?

An offer is terminated if the subject matter of the offer is destroyed.

Which of the following is true for legally claiming a reward?

Bilateral contracts is accepted only upon the offeree's performance of the required act.

A rejection of an offer is not effective until it is actually received by the offeror.

Which of the following statements is true about a counteroffer?

To meet the mirror image rule, the offeree must accept the terms of the offer without modification.

The mirror image rule states that ________.

An offer is not effective until it is actually received by the offeree.

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