Question 1

Which one of the following would constitute a reward?

Accepted Answer

A) a person buying a car after seeing an ad about it 
B) a person returning a lost item after seeing an ad about it 
C) a seller accepting a bid for an item 
D) a seller making an invitation for offers 
A) a person buying a car after seeing an ad about it 
B) a person returning a lost item after seeing an ad about it 
C) a seller accepting a bid for an item 
D) a seller making an invitation for offers

Question 2

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C) The goods on sale cannot be withdrawn.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C) The goods on sale cannot be withdrawn.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.

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

An option contract is terminated upon the death of the offeror.

Accepted Answer

A) True 
 B)False

Question 7

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C) Goods cannot be withdrawn from sale after the offer has been made. 
D) A bid once made cannot be withdrawn and is legally binding.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C) Goods cannot be withdrawn from sale after the offer has been made. 
D) A bid once made cannot be withdrawn and is legally binding.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 8

Which of the following is a difference between acceptance and revocation?

Accepted Answer

A) Revocation is valid only if the offeree receives it, while an offeree's acceptance is valid when dispatched. 
B) Revocation can be done by the offeror or offeree, while an acceptance can only be done by the offeree. 
C) An acceptance must be received by the offeror to be valid, while a revocation need not be received by the offeree. 
D) A revocation can be made after acceptance, while an acceptance cannot be made after revocation. 
A) Revocation is valid only if the offeree receives it, while an offeree's acceptance is valid when dispatched. 
B) Revocation can be done by the offeror or offeree, while an acceptance can only be done by the offeree. 
C) An acceptance must be received by the offeror to be valid, while a revocation need not be received by the offeree. 
D) A revocation can be made after acceptance, while an acceptance cannot be made after revocation.

Question 9

A counteroffer is a rejection of the original offer.

Accepted Answer

A) True 
 B)False

Question 10

Luke offered to sell his farm to Kent at $75,000,an offer which Kent declined.A week later,Luke offered to sell the farm for $65,000,stating it was the final offer that would be valid for one month only.Two days later,Kent offered to pay $60,000 for the farm.Luke received Kent's offer a week later and he declined it.After ten days,Kent agreed to buy the farm for $65,000,but Luke refused to sell the farm.Kent decided to sue Luke for a breach of contract.The judge ruled in favor of Luke.Which one of the following is the reason for the ruling in Luke's favor?

Accepted Answer

A) Luke's original offer of $75,000 is still valid, even though rejected. 
B) Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid. 
C) Kent's acceptance was past the set time period in the offer. 
D) Kent acted in an incompetent manner toward the offer. 
A) Luke's original offer of $75,000 is still valid, even though rejected. 
B) Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid. 
C) Kent's acceptance was past the set time period in the offer. 
D) Kent acted in an incompetent manner toward the offer.

Question 11

In an auction with reserve,the bidder can withdraw his or her bid after an acceptance has been indicated from the offeror.

Accepted Answer

A) True 
 B)False

Question 12

Explain the importance of "time of acceptance" of contracts.

Accepted Answer

Under the common law of contracts,accept

Question 13

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 14

Advertisements are considered to be invitations to make an offer.

Accepted Answer

A) True 
 B)False

Question 15

Identification of the subject matter and quantity would be an implied term.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of 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 revoked 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 revoked during the option period.

Question 17

Give an account of termination of offer due to lapse of time.

Accepted Answer

An offer expires at the lapse of time of

Question 18

How can an offeror revoke an offer?

Accepted Answer

Under the common law,an offeror may revo

Question 19

An offer cannot stipulate that acceptance must be by a specified means of communication.

Accepted Answer

A) True 
 B)False

Question 20

An agreement that an offeror will not sell his property for a specified period subsequent to the offeree paying consideration to the offeror is referred to as a(n)________.

Accepted Answer

A) unequivocal acceptance 
B) contract of adhesion 
C) option contract 
D) firm offer 
A) unequivocal acceptance 
B) contract of adhesion 
C) option contract 
D) firm offer

Exam 10: Agreement

Which one of the following would constitute a reward?

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

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

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

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

An option contract is terminated upon the death of the offeror.

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

Which of the following is a difference between acceptance and revocation?

A counteroffer is a rejection of the original offer.

In an auction with reserve,the bidder can withdraw his or her bid after an acceptance has been indicated from the offeror.

Explain the importance of "time of acceptance" of contracts.

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

Advertisements are considered to be invitations to make an offer.

Identification of the subject matter and quantity would be an implied term.

Which of the following is true of an option contract?

Give an account of termination of offer due to lapse of time.

How can an offeror revoke an offer?

An offer cannot stipulate that acceptance must be by a specified means of communication.

An agreement that an offeror will not sell his property for a specified period subsequent to the offeree paying consideration to the offeror is referred to as a(n)________.

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