Question 1

The basic concept that both parties to a contract should have agreed to the same terms is referred to as:

Accepted Answer

A)  bilateral agreement 
B)  mutual assent 
C)  co-agreement 
D)  common intent 
A)  bilateral agreement 
B)  mutual assent 
C)  co-agreement 
D)  common intent

Question 2

To be entitled to collect on a reward offer,a person need only perform the requested act.

Accepted Answer

A) True 
 B)False

Question 3

In general,who can effectively accept an offer for a unilateral contract?

Accepted Answer

A)  Any person who performs the action requested in the offer,which can occur either before or after learning of the offer. 
B)  Any person who performs the action requested in the offer,so long as the offer had been communicated to that person prior to the performance of the act. 
C)  Any person who promises to perform the action requested in the offer,which can occur either before of after learning of the offer. 
D)  Any person who promises to perform the action requested in the offer,so long as the offer had been communicated to that person prior to the making of the return promise. 
A)  Any person who performs the action requested in the offer,which can occur either before or after learning of the offer. 
B)  Any person who performs the action requested in the offer,so long as the offer had been communicated to that person prior to the performance of the act. 
C)  Any person who promises to perform the action requested in the offer,which can occur either before of after learning of the offer. 
D)  Any person who promises to perform the action requested in the offer,so long as the offer had been communicated to that person prior to the making of the return promise.

Question 4

Kristin offers to sell land to Ian for $5,000.Ian says that $5,000 is too much,but he will pay $4,000.Kristin says no.Two days later,Ian accepts Kristin's original offer.Which of the following best describes this situation?

Accepted Answer

A)  There is now a valid contract between Kristin and Ian. 
B)  Ian made a counteroffer; that terminated Kristin's offer. 
C)  Kristin may now accept Ian's counteroffer. 
D)  Ian made a counteroffer,but Kristin's offer may still be accepted. 
A)  There is now a valid contract between Kristin and Ian. 
B)  Ian made a counteroffer; that terminated Kristin's offer. 
C)  Kristin may now accept Ian's counteroffer. 
D)  Ian made a counteroffer,but Kristin's offer may still be accepted.

Question 5

In certain circumstances,silence can operate as acceptance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is correct regarding a "counteroffer?"

Accepted Answer

A)  It is no different from any other offer. 
B)  It is not really an offer,but operates as the revocation of an offer. 
C)  It operates as both an offer and an acceptance. 
D)  It is treated as both a rejection of an offer and a new offer. 
E)  It is treated as a new offer,but does not terminate the original offer. 
A)  It is no different from any other offer. 
B)  It is not really an offer,but operates as the revocation of an offer. 
C)  It operates as both an offer and an acceptance. 
D)  It is treated as both a rejection of an offer and a new offer. 
E)  It is treated as a new offer,but does not terminate the original offer.

Question 7

What does an offeree use to simply indicate that he/she is not interested in an offer?

Accepted Answer

A)  revocation 
B)  rejection 
C)  counteroffer 
D)  promissory estoppel 
E)  option 
A)  revocation 
B)  rejection 
C)  counteroffer 
D)  promissory estoppel 
E)  option

Question 8

If a contract omitted some terms,which of the following terms could be implied by the court?

Accepted Answer

A)  quantity 
B)  time for performance 
C)  price,if a reasonable price can be determined 
D)  A,B,and C 
E)  B and C only 
A)  quantity 
B)  time for performance 
C)  price,if a reasonable price can be determined 
D)  A,B,and C 
E)  B and C only

Question 9

The mailbox rule means which of the following?

Accepted Answer

A)  Offers and acceptances must be communicated through the mail in order to be effective. 
B)  Offers and acceptances are effective when placed in the mail. 
C)  A properly dispatched acceptance is effective even if the offeror never receives it. 
D)  A revocation is effective when sent. 
A)  Offers and acceptances must be communicated through the mail in order to be effective. 
B)  Offers and acceptances are effective when placed in the mail. 
C)  A properly dispatched acceptance is effective even if the offeror never receives it. 
D)  A revocation is effective when sent.

Question 10

A counteroffer is treated as both a revocation and a new offer.

Accepted Answer

A) True 
 B)False

Question 11

What is the legal effect of an auction being with reserve?

Accepted Answer

A)  The seller has the right to reject all of the bids. 
B)  Certain bidders have reserved bids of specified amounts in advance. 
C)  The bidders must be given an opportunity to inspect the items prior to the bidding. 
D)  Bidders must make a cash deposit in advance to show the financial ability to carry through with the purchase of any item for which they are the highest bidder. 
A)  The seller has the right to reject all of the bids. 
B)  Certain bidders have reserved bids of specified amounts in advance. 
C)  The bidders must be given an opportunity to inspect the items prior to the bidding. 
D)  Bidders must make a cash deposit in advance to show the financial ability to carry through with the purchase of any item for which they are the highest bidder.

Question 12

Offers made to the public may be revoked by communicating the revocation by the same means used to make the offer.

Accepted Answer

A) True 
 B)False

Question 13

Jess says to a friend,"I'll sell you my 2-year-old Toyota Camry for $4,000." The friend says,"I'll take it," and they sign a short agreement to that effect.The friend didn't know this,but Jess intended the offer as a joke.There will be a contract if which of the following is true?

Accepted Answer

A)  The approximate fair value of the car is $4,000. 
B)  A reasonable person would have concluded that Jess was serious when making the offer. 
C)  Jess failed to disaffirm the contract within a reasonable time after the offer was accepted. 
D)  The written agreement spells out all provisions of the contract. 
A)  The approximate fair value of the car is $4,000. 
B)  A reasonable person would have concluded that Jess was serious when making the offer. 
C)  Jess failed to disaffirm the contract within a reasonable time after the offer was accepted. 
D)  The written agreement spells out all provisions of the contract.

Question 14

The owner of a small business is having lunch with an employee.He says,"I'm so tired of the problems that we are having lately that I would sell the entire business to you now for a nickel!" The employee quickly slams a nickel on the table and exclaims,"I accept!" Is there a valid contract?

Accepted Answer

A)  Yes; the offer was made and accepted in a timely fashion. 
B)  Yes; the offer was made and the employee conferred the requested consideration. 
C)  No; the consideration is inadequate for the purchase. 
D)  No; there is a lack of objective intent. 
A)  Yes; the offer was made and accepted in a timely fashion. 
B)  Yes; the offer was made and the employee conferred the requested consideration. 
C)  No; the consideration is inadequate for the purchase. 
D)  No; there is a lack of objective intent.

Question 15

If nothing is stated about how long an offer is to remain open,it remains open until it is revoked by the offeror.

Accepted Answer

A) True 
 B)False

Question 16

The concept of objective intent with respect to contract law means which of the following?

Accepted Answer

A)  When forming a contract,each party must expressly state an intent to be obligated under the terms of an agreement. 
B)  The parties must each intend to be bound by the terms of an agreement based on each party's true intent,whether or not that intent is known by the other party. 
C)  The parties' intent to be bound by the terms of a contract is based on whether an outsider observing the parties' words and conduct would reasonably conclude that the parties have the needed intent. 
D)  So long as one party intends to be bound by the terms of an agreement,the objective intent requirement will be met. 
A)  When forming a contract,each party must expressly state an intent to be obligated under the terms of an agreement. 
B)  The parties must each intend to be bound by the terms of an agreement based on each party's true intent,whether or not that intent is known by the other party. 
C)  The parties' intent to be bound by the terms of a contract is based on whether an outsider observing the parties' words and conduct would reasonably conclude that the parties have the needed intent. 
D)  So long as one party intends to be bound by the terms of an agreement,the objective intent requirement will be met.

Question 17

Which of the following would be a valid offer?

Accepted Answer

A)  Bob's brand new riding lawn mower will not start,so Bob yells,"I'd sell this thing for $10." 
B)  Jane is a real estate agent,and while looking at a house she says,"I think we can get $50,000 for this place." 
C)  Mary goes to a garage sale,sees a dresser she wants,and says,"Would you take $25 for this dresser?" 
D)  John tells Rhoda,"I'll give you $500 for your motorcycle." 
A)  Bob's brand new riding lawn mower will not start,so Bob yells,"I'd sell this thing for $10." 
B)  Jane is a real estate agent,and while looking at a house she says,"I think we can get $50,000 for this place." 
C)  Mary goes to a garage sale,sees a dresser she wants,and says,"Would you take $25 for this dresser?" 
D)  John tells Rhoda,"I'll give you $500 for your motorcycle."

Question 18

Larry loses his wallet on the bus.He places posters around the bus stop locations offering a reward for the wallet.Mary finds that wallet on the street and contacts Larry.After she had returned the wallet to Larry,a friend advised her that Larry had been offering a reward for the wallet.She later contacts Larry about the reward money.How much is she entitled to?

Accepted Answer

A)  the ancillary costs associated with returning the wallet 
B)  one half of the reward money 
C)  the entire reward 
D)  none 
A)  the ancillary costs associated with returning the wallet 
B)  one half of the reward money 
C)  the entire reward 
D)  none

Question 19

Anita offered to sell her condo to Bill.Before Bill could accept,one of the parties was killed in a car accident.The remaining party wishes to go through with the contract.Which of the following best describes this situation?

Accepted Answer

A)  The death of either party terminated the offer. 
B)  If Anita died,Bill can still accept the offer; Anita's estate will be liable for the contract. 
C)  If Bill died,Bill's heirs can still accept the offer. 
D)  If Anita died,the offer is terminated; if Bill died,Bill's heirs can still accept the offer. 
A)  The death of either party terminated the offer. 
B)  If Anita died,Bill can still accept the offer; Anita's estate will be liable for the contract. 
C)  If Bill died,Bill's heirs can still accept the offer. 
D)  If Anita died,the offer is terminated; if Bill died,Bill's heirs can still accept the offer.

Question 20

Lefty's Surplus Store placed an advertisement in the newspaper offering one new bath tub,regularly priced at $500,for sale for only $10,to the first person who came to the store the next day.Judy was the first person to appear the next day and she demanded the bath tub for $10.Lefty's refused to sell to her.Judy sued.What is the likely outcome?

Accepted Answer

Due to the specific nature of

Exam 10: Agreement

The basic concept that both parties to a contract should have agreed to the same terms is referred to as:

To be entitled to collect on a reward offer,a person need only perform the requested act.

In general,who can effectively accept an offer for a unilateral contract?

Kristin offers to sell land to Ian for $5,000.Ian says that $5,000 is too much,but he will pay $4,000.Kristin says no.Two days later,Ian accepts Kristin's original offer.Which of the following best describes this situation?

In certain circumstances,silence can operate as acceptance.

Which of the following is correct regarding a "counteroffer?"

What does an offeree use to simply indicate that he/she is not interested in an offer?

If a contract omitted some terms,which of the following terms could be implied by the court?

The mailbox rule means which of the following?

A counteroffer is treated as both a revocation and a new offer.

What is the legal effect of an auction being with reserve?

Offers made to the public may be revoked by communicating the revocation by the same means used to make the offer.

Jess says to a friend,"I'll sell you my 2-year-old Toyota Camry for $4,000." The friend says,"I'll take it," and they sign a short agreement to that effect.The friend didn't know this,but Jess intended the offer as a joke.There will be a contract if which of the following is true?

The owner of a small business is having lunch with an employee.He says,"I'm so tired of the problems that we are having lately that I would sell the entire business to you now for a nickel!" The employee quickly slams a nickel on the table and exclaims,"I accept!" Is there a valid contract?

If nothing is stated about how long an offer is to remain open,it remains open until it is revoked by the offeror.

The concept of objective intent with respect to contract law means which of the following?

Which of the following would be a valid offer?

Anita offered to sell her condo to Bill.Before Bill could accept,one of the parties was killed in a car accident.The remaining party wishes to go through with the contract.Which of the following best describes this situation?

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