Question 1

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

Accepted Answer

A) An implied in fact contract has been formed. 
B) A unilateral contract has been formed. 
C) This is a formal contract. 
D) This is an option contract.

Question 2

An implied contract is not an enforceable contract.

Accepted Answer

A) True 
 B)False

Question 3

A contract cannot be formed unless it is possible to determine the exact moment at which it was made.

Accepted Answer

A) True 
 B)False

Question 4

An offer can be communicated by words or by conduct.

Accepted Answer

A) True 
 B)False

Question 5

The UCC Battle of the Forms rule:

Accepted Answer

A) changes the mirror image rule. 
B) may yield different results depending on whether the parties are merchants. 
C) may result in formation of a contract different from the terms of the offer. 
D) All of these.

Question 6

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene.The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

Accepted Answer

A) True 
 B)False

Question 7

If Thomas seemingly offers to sell to Raquel his Toro lawnmower but he intends to offer and believes he is offering her his Murray mower, and she accepts the offer, reasonably believing it was for the Toro, no contract has been formed because there is no mutual assent.

Accepted Answer

A) True 
 B)False

Question 8

The Code's firm offer rule applies only to offers in writing that are made by a merchant offeror.

Accepted Answer

A) True 
 B)False

Question 9

In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge of the eight-hour-a-day operating schedule.

Accepted Answer

A) True 
 B)False

Question 10

In general, an acceptance is effective upon dispatch.

Accepted Answer

A) True 
 B)False

Question 11

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

Accepted Answer

The answer of If a person, without knowing of an...

Question 12

Albert read Gem City's ad in the local newspaper advertising a one-quarter carat diamond ring for $89.Albert rushed to the store to buy the ring, only to be told by the salesperson that the ad was a misprint and the price should have been $289.Albert gave the salesperson $89 plus sales tax and demanded the ring.In this case:

Accepted Answer

A) the ad is a firm offer by the merchant, and the ring must be sold for $89. 
B) the ad is a contract and the store must abide by terms stated in the contract. 
C) the store must accept the price stated in the ad, but only if Albert has a copy of the ad with him. 
D) Albert is merely making an offer to Gem City to buy the ring for $89 plus sales tax.

Question 13

If an offeror makes an offer to an offeree by letter and it is lost in the mail, no legally sufficient offer has been made.

Accepted Answer

A) True 
 B)False

Question 14

To be effective, notice of revocation of an offer:

Accepted Answer

A) must be communicated directly to the offeree before the offeree has accepted. 
B) may be communicated indirectly to the offeree through a third person. 
C) must be dispatched before the offeree accepts; when notice actually reaches the offeree is not important. 
D) is not addressed in the Restatement.

Question 15

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

Accepted Answer

A) an output contract. 
B) a requirements contract. 
C) a firm offer. 
D) promissory estoppel.

Question 16

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.Elmer:

Accepted Answer

A) has made a firm offer to Fred which cannot be revoked. 
B) can revoke his offer at any time before acceptance, because there is no consideration to keep the offer open. 
C) must keep the offer open, because this is an option contract. 
D) is prohibited from revoking his offer to Fred under the doctrine of promissory estoppel.

Question 17

If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means of acceptance.

Accepted Answer

A) True 
 B)False

Question 18

An offer is effective as soon as it is dispatched.

Accepted Answer

A) True 
 B)False

Question 19

Gail sent a letter of acceptance to an offer that has expired.Gail has made:

Accepted Answer

A) a contract. 
B) a rejection. 
C) a revocation. 
D) an offer.

Question 20

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

Accepted Answer

A) firm offer if made by a merchant. 
B) offer if made by a merchant, but not a firm offer. 
C) offer irrespective of who made the offer. 
D) invitation to buyers to make an offer to buy goods.

Exam 10: Mutual Assent

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

An implied contract is not an enforceable contract.

A contract cannot be formed unless it is possible to determine the exact moment at which it was made.

An offer can be communicated by words or by conduct.

The UCC Battle of the Forms rule:

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene.The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

If Thomas seemingly offers to sell to Raquel his Toro lawnmower but he intends to offer and believes he is offering her his Murray mower, and she accepts the offer, reasonably believing it was for the Toro, no contract has been formed because there is no mutual assent.

The Code's firm offer rule applies only to offers in writing that are made by a merchant offeror.

In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge of the eight-hour-a-day operating schedule.

In general, an acceptance is effective upon dispatch.

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

If an offeror makes an offer to an offeree by letter and it is lost in the mail, no legally sufficient offer has been made.

To be effective, notice of revocation of an offer:

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.Elmer:

If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means of acceptance.

An offer is effective as soon as it is dispatched.

Gail sent a letter of acceptance to an offer that has expired.Gail has made:

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n) :