Question 1

The legal power to accept an offer belongs to the ________.

Accepted Answer

A) offeror 
B) offeree 
C) agent 
D) seller 
A) offeror 
B) offeree 
C) agent 
D) seller

Question 2

Which of the following is true about an option contract?

Accepted Answer

A) If the offeree chooses not to buy the property then money paid in consideration must be returned. 
B) If money is paid as consideration, then that is not applied to the sale price. 
C) Death or incompetency of either party terminates an option contract. 
D) The offer cannot be revoke during the option period. 
A) If the offeree chooses not to buy the property then money paid in consideration must be returned. 
B) If money is paid as consideration, then that is not applied to the sale price. 
C) Death or incompetency of either party terminates an option contract. 
D) The offer cannot be revoke during the option period.

Question 3

________ is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts.

Accepted Answer

A) Acceptance 
B) Revocation 
C) Proposal 
D) Counteroffer 
A) Acceptance 
B) Revocation 
C) Proposal 
D) Counteroffer

Question 4

Which of the following is true for an auction with reserve?

Accepted Answer

A) The seller retains the right to refuse the highest bidder. 
B) Invitations to make an offer are not allowed. 
C) Goods cannot be withdrawn from sale after the offer has been made. 
D) A bid once made cannot be withdrawn and is legally binding. 
A) The seller retains the right to refuse the highest bidder. 
B) Invitations to make an offer are not allowed. 
C) Goods cannot be withdrawn from sale after the offer has been made. 
D) A bid once made cannot be withdrawn and is legally binding.

Question 5

A counteroffer is a rejection of the original offer.

Accepted Answer

A) True 
 B)False

Question 6

A contract requires an offer and an acceptance.

Accepted Answer

A) True 
 B)False

Question 7

The offeree must be objectively intended to be bound by the offer for the offer to be effective.

Accepted Answer

A) True 
 B)False

Question 8

Give an account of the express terms that are parts of an offer.

Accepted Answer

The terms of an offer must be clear enou

Question 9

In which of the following types of offers does the seller offer the goods for sale?

Accepted Answer

A) revocation 
B) reward 
C) auction with reserve 
D) auction without reserve 
A) revocation 
B) reward 
C) auction with reserve 
D) auction without reserve

Question 10

What is the key difference between an agreement and a contract?

Accepted Answer

A) A contract is always enforceable in the court of law, while an acceptance may or may not be. 
B) A contract can only be between two individuals, while an acceptance can have two or more people involved. 
C) A contract required mutual assent from all parties, while an acceptance need only be accepted a majority of people involved. 
D) A contract need not be legally binding, while an agreement must be legally binding. 
A) A contract is always enforceable in the court of law, while an acceptance may or may not be. 
B) A contract can only be between two individuals, while an acceptance can have two or more people involved. 
C) A contract required mutual assent from all parties, while an acceptance need only be accepted a majority of people involved. 
D) A contract need not be legally binding, while an agreement must be legally binding.

Question 11

A(n)________ is a withdrawal of an offer by the offeror that terminates the offer.

Accepted Answer

A) rejection 
B) advertisement 
C) revocation 
D) counteroffer 
A) rejection 
B) advertisement 
C) revocation 
D) counteroffer

Question 12

In an auction with reserve, the seller retains the right to refuse the highest bidder.

Accepted Answer

A) True 
 B)False

Question 13

An agreement is created when the offeree receives the offer.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be considered an offer to form a unilateral contract?

Accepted Answer

A) advertisement 
B) auction without reserve 
C) reward offer 
D) auction with reserve 
A) advertisement 
B) auction without reserve 
C) reward offer 
D) auction with reserve

Question 15

Which of the following statements is true of an offer that was not communicated?

Accepted Answer

A) The offer stays valid for 30 days from the date of creation. 
B) The offer cannot be accepted by the offeree if not communicated. 
C) The offeree can claim an offer that was not communicated. 
D) It is considered to be an implied term. 
A) The offer stays valid for 30 days from the date of creation. 
B) The offer cannot be accepted by the offeree if not communicated. 
C) The offeree can claim an offer that was not communicated. 
D) It is considered to be an implied term.

Question 16

In an auction with reserve, the bidder is the offeror.

Accepted Answer

A) True 
 B)False

Question 17

In an auction without reserve, the seller is obliged sell the goods to the highest bidder.

Accepted Answer

A) True 
 B)False

Question 18

Unless otherwise expressly stated, an auction is considered an auction with reserve.

Accepted Answer

A) True 
 B)False

Question 19

Peter has two houses that he plans to sell, numbered Lot 1 and Lot 2.Each priced at $800, 000.David has shown interest in buying Lot 2, but could not make up his mind on the final offer, so he asks Peter to give him a week to decide and Peter accepts.But David takes two weeks to get back to Peter with a counteroffer.Before he could give David a reply to his counteroffer, Peter is killed in a fire that burned down Lot 1.Which of the following would be true of this case?

Accepted Answer

A) The offer is terminated due to lapse of time. 
B) The offer is terminated due to destruction of the subject matter. 
C) The offer is terminated due to death of the offeror. 
D) David can still buy the house for Peter's original offer. 
A) The offer is terminated due to lapse of time. 
B) The offer is terminated due to destruction of the subject matter. 
C) The offer is terminated due to death of the offeror. 
D) David can still buy the house for Peter's original offer.

Question 20

The term ________ refers to a mode of acceptance that is indicated from what is customary in similar transactions, usage of trade, or prior dealings between the parties.

Accepted Answer

A) express authorization 
B) implied authorization 
C) option contract 
D) unequivocal acceptance 
A) express authorization 
B) implied authorization 
C) option contract 
D) unequivocal acceptance

Exam 10: Agreement

The legal power to accept an offer belongs to the ________.

Which of the following is true about an option contract?

________ is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts.

Which of the following is true for an auction with reserve?

A counteroffer is a rejection of the original offer.

A contract requires an offer and an acceptance.

The offeree must be objectively intended to be bound by the offer for the offer to be effective.

Give an account of the express terms that are parts of an offer.

In which of the following types of offers does the seller offer the goods for sale?

What is the key difference between an agreement and a contract?

A(n)________ is a withdrawal of an offer by the offeror that terminates the offer.

In an auction with reserve, the seller retains the right to refuse the highest bidder.

An agreement is created when the offeree receives the offer.

Which of the following would be considered an offer to form a unilateral contract?

Which of the following statements is true of an offer that was not communicated?

In an auction with reserve, the bidder is the offeror.

In an auction without reserve, the seller is obliged sell the goods to the highest bidder.

Unless otherwise expressly stated, an auction is considered an auction with reserve.

The term ________ refers to a mode of acceptance that is indicated from what is customary in similar transactions, usage of trade, or prior dealings between the parties.

Legal Heritage and the Digital Age

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