Question 1

Which of the following is an exception to the general rule that rejections terminate offers?

Accepted Answer

A)   Unilateral contracts
B)   Bilateral contracts
C)   Firm offers
D)   Option contracts

Question 2

How can an offeree impliedly reject an offer?

Accepted Answer

A)   By indicating that he will not accept it
B)   By asking for more time to think
C)   By making a counteroffer
D)   By writing his nonacceptance

Question 3

Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of:

Accepted Answer

A)   consideration.
B)   definiteness.
C)   communication to offeree.
D)   present intent to contract.

Question 4

Which of the following is true regarding bids?

Accepted Answer

A)   They are considered to be unilateral contracts.
B)   Promissory estoppels can be used to prevent withdrawal of bids.
C)   Bids for governmental contracts are covered under contract principles.
D)   Those submitting a bid are called offerees.

Question 5

When can the offeror effectively revoke his/her offer?

Accepted Answer

A)   Only after an effective acceptance.
B)   Only before an effective acceptance.
C)   Only before payment for goods or services has been made.
D)   Only before the parties have completed their obligations under the contract.

Question 6

Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract?

Accepted Answer

A)   Yes, because there is valid consideration.
B)   Yes, because a third party has communicated the terms of Sue's offer to John and that John had accepted the same.
C)   No, because the offeror had not communicated the terms of the offer to the offeree.
D)   No, because the contract is still not signed by both the parties.

Question 7

A revocation is effective at the time it is dispatched by the offeror.

Accepted Answer

A) True 
 B)False

Question 8

A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

Accepted Answer

A)   An offer for the sale of land.
B)   An offer to purchase stock on a stock exchange.
C)   An offer that says that it will stay open for one week.
D)   An offer with a valid five-day option attached to it.

Question 10

Which of the following is the first step in the contract formation process?

Accepted Answer

A)   Signing the agreement
B)   An offer in definite terms
C)   Selection of partners
D)   Drafting the agreement

Question 11

What legal effect does death or insanity of the offeror have on the offer?

Accepted Answer

A)   It terminates the offer automatically.
B)   It terminates only the last contract that has been formed with that offeror.
C)   It has no legal effect unless and until the offeree is notified of the death of the offeror.
D)   It makes the offer voidable.

Question 12

The outer limit on a firm offer is:

Accepted Answer

A)   1 month.
B)   3 months.
C)   6 months.
D)   1 year.

Question 13

A newspaper advertisement made to the general public:

Accepted Answer

A)   usually is an offer.
B)   can be revoked by using a similar newspaper advertisement.
C)   can only be rejected by using a similar newspaper advertisement.
D)   is a firm offer that cannot be revoked.

Question 14

Which of the following characterizes definiteness standards under the common law?

Accepted Answer

A)   Courts are contract enforcers.
B)   Contracts need to contain all the terms.
C)   Courts should be able to provide "gap-fillers" in contracts.
D)   Courts can take a "hands-on" approach to contracts.

Question 15

Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____.

Accepted Answer

A)   offers
B)   invitations to negotiate
C)   invitations to offer
D)   obligations

Question 16

Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate?

Accepted Answer

A)   Austen should not rely on Bronte's offer to do the electrical work.
B)   Austen has accepted Bronte's offer, thereby forming a contract.
C)   Austen is not bound by Bronte's bid until he informs her of his intent to accept.
D)   Bronte has accepted Austen's offer by submitting the lowest bid.

Question 17

A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country; and therefore, the offer was terminated by the embargo. This is an example of:

Accepted Answer

A)   promissory estoppel.
B)   destruction of subject matter.
C)   intervening illegality.
D)   revocation.

Question 18

A firm offer differs from an option in that, a firm offer:

Accepted Answer

A)   is a separate contract by itself.
B)   is irrevocable for a certain period of time.
C)   does not require a consideration in exchange for the offer.
D)   is not covered under the UCC.

Question 19

To distinguish an offer, courts first look at:

Accepted Answer

A)   the communication to the offeree.
B)   the definiteness of terms.
C)   the present intent to contract.
D)   a description of the parties involved.

Question 20

Offers that fail to provide a specific time for acceptance :

Accepted Answer

A)   are considered to be illegal.
B)   are valid for a reasonable period for time.
C)   are valid but unenforceable.
D)   can be used to penalize the offeror.

Exam 10: The Agreement: Offer

Correct Answer
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Which of the following is an exception to the general rule that rejections terminate offers?

Correct Answer
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The outer limit on a firm offer is:

Correct Answer
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Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

Correct Answer
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When can the offeror effectively revoke his/her offer?

Correct Answer
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A newspaper advertisement made to the general public:

Correct Answer
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A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Correct Answer
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A firm offer differs from an option in that, a firm offer:

Correct Answer
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Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of:

Correct Answer
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A revocation is effective at the time it is dispatched by the offeror.

Correct Answer
verified

Which of the following characterizes definiteness standards under the common law?

Correct Answer
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To distinguish an offer, courts first look at:

Correct Answer
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Which of the following is true regarding bids?

Correct Answer
verified

A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country; and therefore, the offer was terminated by the embargo. This is an example of:

Correct Answer
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What legal effect does death or insanity of the offeror have on the offer?

Correct Answer
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Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____.

Correct Answer
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Offers that fail to provide a specific time for acceptance :

Correct Answer
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How can an offeree impliedly reject an offer?

Correct Answer
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Correct Answer
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Which of the following is the first step in the contract formation process?

Correct Answer
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Exam 10: The Agreement: Offer

Correct AnswerverifiedShow Answer

Which of the following is an exception to the general rule that rejections terminate offers?

Correct AnswerverifiedShow Answer

The outer limit on a firm offer is:

Correct AnswerverifiedShow Answer

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

Correct AnswerverifiedShow Answer

When can the offeror effectively revoke his/her offer?

Correct AnswerverifiedShow Answer

A newspaper advertisement made to the general public:

Correct AnswerverifiedShow Answer

A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Correct AnswerverifiedShow Answer

A firm offer differs from an option in that, a firm offer:

Correct AnswerverifiedShow Answer

Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of:

Correct AnswerverifiedShow Answer

A revocation is effective at the time it is dispatched by the offeror.

Correct AnswerverifiedShow Answer

Which of the following characterizes definiteness standards under the common law?

Correct AnswerverifiedShow Answer

To distinguish an offer, courts first look at:

Correct AnswerverifiedShow Answer

Which of the following is true regarding bids?

Correct AnswerverifiedShow Answer

A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country; and therefore, the offer was terminated by the embargo. This is an example of:

Correct AnswerverifiedShow Answer

What legal effect does death or insanity of the offeror have on the offer?

Correct AnswerverifiedShow Answer

Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____.

Correct AnswerverifiedShow Answer

Offers that fail to provide a specific time for acceptance :

Correct AnswerverifiedShow Answer

How can an offeree impliedly reject an offer?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the first step in the contract formation process?

Correct AnswerverifiedShow Answer

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