Question 1

A(n) ________ is a voluntary exchange of promises between two or more legally competent persons to do, or refrain from doing, an act.

Accepted Answer

A)  offer
B)  advertisement
C)  agreement
D)  proposal

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true about a revocation?

Accepted Answer

A)  It can be made by the offeree.
B)  It needs to reach the offeree to be effective.
C)  It can be done even after acceptance of the offer.
D)  It can be applied to an option contract.

Question 4

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

Question 5

The ________ theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Accepted Answer

A)  objective
B)  relational
C)  collateral
D)  bargain

Question 6

Techstate, a hardware manufacturer in the United States, has an existing contract with a client based in the Republic of Karthasia, which is going through a domestic political crisis.The resulting upheaval in that country has led to some of the shipments to the client being destroyed by warring factions.As a sanction against the country, the United States government places an embargo on all exports to that country by U.S.firms.What will be the state of the contract between Techstate and the client in Karthasia after the embargo?

Accepted Answer

A)  It will be terminated due to destruction of subject matter.
B)  It will be terminated due to incompetency of the offeror.
C)  It will be terminated due to lapse of time.
D)  It will be terminated due to supervening illegality.

Question 7

Quentin is a member of the Album of the Month Club and receives a new music CD every month without fail.The Club usually gives its members a time period within which they can reject the selection and stop shipment of the CD, failing which the CD will be shipped.Last month, Quentin received a CD from Album of the Month Club, a copy of which a friend had already gifted him.He had not found time to reject the offer as he was away.Quentin could not reject the CD and had to buy it.What kind of an offer-acceptance model does Album of the Month Club have?

Accepted Answer

A)  mirror image rule acceptance
B)  silence as acceptance
C)  acceptance-upon-dispatch
D)  unequivocal acceptance

Question 8

Identification of the parties of a contract would be an express term.

Accepted Answer

A) True 
 B)False

Question 9

________ is a stipulation in an offer that says the acceptance must be by a specified means of communication.

Accepted Answer

A)  Option contract
B)  Mirror image rule
C)  Implied authorization
D)  Express authorization

Question 10

During a counteroffer, the previous offeror remains the offeror.

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

Under the mailbox rule, an acceptance is only effective when it is received.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

An offer that is made to two or more persons jointly must be accepted jointly.

Accepted Answer

A) True 
 B)False

Question 16

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 that it was the final offer, it was valid for one month, and that he would not alter it.Two days later, Kent replied by saying that he was willing to pay $60, 000 for the farm.A week after Luke received Kent's offer, Luke declined it.Ten days after that, 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 with regards to the offer.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

An offer is terminated on the grounds of "supervening illegality" when ________.

Accepted Answer

A)  the set period in the offer has expired
B)  the subject matter in the offer has been destroyed
C)  a statute or court decision deems an object of the offer unlawful
D)  the offeror or offeree passes away prior to the offer being accepted

Question 19

Only the offeree has the legal power to accept an offer and create a contract.

Accepted Answer

A) True 
 B)False

Question 20

The offer must be communicated to the offeree for the offer to be effective.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement

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

Correct Answer
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Under the mailbox rule, an acceptance is only effective when it is received.

Correct Answer
verified

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

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

Correct Answer
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The offer must be communicated to the offeree for the offer to be effective.

Correct Answer
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Which of the following statements is true about a revocation?

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

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

Correct Answer
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A(n) ________ is a voluntary exchange of promises between two or more legally competent persons to do, or refrain from doing, an act.

Correct Answer
verified

Only the offeree has the legal power to accept an offer and create a contract.

Correct Answer
verified

Correct Answer
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Identification of the parties of a contract would be an express term.

Correct Answer
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Which one of the following would constitute a reward?

Correct Answer
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________ is a stipulation in an offer that says the acceptance must be by a specified means of communication.

Correct Answer
verified

The ________ theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Correct Answer
verified

An offer that is made to two or more persons jointly must be accepted jointly.

Correct Answer
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An offer is terminated on the grounds of "supervening illegality" when ________.

Correct Answer
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During a counteroffer, the previous offeror remains the offeror.

Correct Answer
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Exam 10: Agreement

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under the mailbox rule, an acceptance is only effective when it is received.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The offer must be communicated to the offeree for the offer to be effective.

Correct AnswerverifiedShow Answer

Which of the following statements is true about a revocation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A(n) ________ is a voluntary exchange of promises between two or more legally competent persons to do, or refrain from doing, an act.

Correct AnswerverifiedShow Answer

Only the offeree has the legal power to accept an offer and create a contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Identification of the parties of a contract would be an express term.

Correct AnswerverifiedShow Answer

Which one of the following would constitute a reward?

Correct AnswerverifiedShow Answer

________ is a stipulation in an offer that says the acceptance must be by a specified means of communication.

Correct AnswerverifiedShow Answer

The ________ theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Correct AnswerverifiedShow Answer

An offer that is made to two or more persons jointly must be accepted jointly.

Correct AnswerverifiedShow Answer

An offer is terminated on the grounds of "supervening illegality" when ________.

Correct AnswerverifiedShow Answer

During a counteroffer, the previous offeror remains the offeror.

Correct AnswerverifiedShow Answer

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