61. In contract law, an agreement means there is a mutual understanding between the parties as to the substance of the
contract. This agreement between the parties is legally reached through:
a. negotiation and deliberation
b. communication of conditions
c. revocation or rejection
d. rejection and counteroffer
e. offer and acceptance
62. In contract law, an agreement means that there is a mutual understanding between the parties as to the substance
of the contract. This agreement between the parties is reached, in legal terms, through a process of:
a. negotiation and deliberation
b. communication of conditions
c. revocation or rejection
d. rejection and counteroffer
e. none of the other choices necessarily
63. An offer is:
a. a suggestion of a price for a good or service
b. a legally binding price for a good or service
c. an unofficial suggestion of a promise
d. a promise to do something or to refrain from doing some specific thing
e. a refusal to promise to do something or to refrain from doing some specific thing
64. An offer is:
a. a suggestion of a price for a good or service
b. a legally binding price for a good or service
c. an unofficial suggestion of a promise
d. a refusal to promise to do something or to refrain from doing some specific thing
e. none of the other choices are correct
65. A promise to do something or to refrain from doing some specific thing is a(n):
a. offer
b. suggestion
c. legal promise
d. bid
e. proposal
66. A promise to do something or to refrain from doing some specific thing is a:
a. proposal
b. suggestion
c. legal promise
d. bid
e. none of the other choices are correct
67. The Restatement (2d) of Contracts defines a(n) as “the manifestation of willingness to enter into a bargain,
so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.”
a. proposal
b. suggestion
c. offer
d. bid
e. none of the other choices are correct
68. The Restatement (2d) of Contracts defines a(n) as “the manifestation of willingness to enter into a bargain,
so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.”
a. proposal
b. suggestion
c. legal promise
d. bid
e. none of the other choices are correct
69. The controls the terms of the offer when a contract is made.
a. offeree
b. offeror
c. judge
d. contractor
e. unbiased third party
70. The controls the terms of the offer when a contract is made.
a. offeree
b. unbiased third party
c. judge
d. contractor
e. none of the other choices are correct
71. A contract is formed only when an offer is accepted:
a. by the offeree
b. by the offeror
c. by the rules of the UCC
d. by the promisor
e. none of the other choices
72. Which is not an element for an offer to be effective:
a. clear intent by offeror
b. willingness to accept consideration
c. proper communication
d. clear and certain terms and conditions
e. all other choices are necessary
73. When making an offer, the offeror must:
a. intend to obligate other parties
b. discuss her offer with more than one party
c. express a desire to be bound
d. avoid unjust enrichment of the offeror
e. comply with the Uniform Commercial Code
74. An effective offer includes which of the following:
a. a clear intent by the offeror to become contractually bound
b. clear and certain basic terms and conditions of the offer
c. proper communication of the offer
d. all of the other specific choices are correct
e. none of the other specific choices are correct
75. An effective offer includes which of the following:
a. a clear intent by the offeree to become contractually bound
b. unclear and uncertain basic terms and conditions of the offer
c. proper communication of the offer
d. all of the other specific choices are correct
e. none of the other specific choices are correct
76. An effective offer includes which of the following:
a. a clear intent by the offeree to become contractually bound
b. unclear and uncertain basic terms and conditions of the offer
c. a clear intent by the offeror to become contractually bound
d. all of the other specific choices are correct
e. none of the other specific choices are correct
77. An effective offer includes which of the following:
a. a clear intent by the offeree to become contractually bound
b. unclear and uncertain basic terms and conditions of the offer
c. clear and certain basic terms of the offer
d. all of the other specific choices are correct
e. none of the other specific choices are correct
78. To make an offer, the offeror must:
a. have the intent to be bound to the contract, and that intent must be clearly expressed or manifested
b. have the intent to be bound to the contract, but need not express or manifest that intent
c. have filed a copy of the offer with the county court house
d. have written documentation of the intent
e. have known the offeree for at least 1 year
79. To make an offer, the offeror must:
a. have known the offeree for at least 1 year
b. have the intent to be bound to the contract, but need not express or manifest that intent
c. have filed a copy of the offer with the county court house
d. have written documentation of the intent
e. none of the other choices are correct
80. A contract cannot be formed if is lacking.
a. feeling
b. friendship
c. intent
d. purpose
e. meaning
81. A contract cannot be formed if is lacking.
a. feeling
b. friendship
c. meaning
d. purpose
e. none of the other choices are correct
82. Preliminary negotiations are:
a. a clear manifestation of intent to be bound to a contract
b. legally an offer
c. invitations to negotiate or to make an offer
d. all of the other choices
e. none of the other choices
83. Preliminary negotiations are:
a. a clear manifestation of intent to be bound to a contract
b. legally an offer
c. invitations to negotiate or to make an offer
d. binding on offeree
e. binding on offeror
84. Invitations to negotiate or to make an offer are known as:
a. manifestations of intent
b. offers of intent
c. early negotiations
d. preliminary negotiations
e. beginning negotiations
85. Invitations to negotiate or to make an offer are known as:
a. manifestations of intent
b. offers of intent’
c. early negotiations
d. beginning negotiations
e. none of the other choices are correct
86. Ads are usually considered:
a. invitations for others to submit offers to buy
b. fully binding contracts
c. partially binding contracts
d. express contracts
e. implied contracts
87. Ads are usually considered:
a. implied contracts
b. fully binding contracts
c. partially binding contracts
d. express contracts
e. none of the other choices are correct
88. An offer that has unclear major terms, or is missing important terms:
a. can be the basis for an implicit, but not express, contract
b. can be the basis for an express, but not implicit, contract
c. cannot be the basis for a contract
d. makes the offeror liable if not executed properly
e. makes the offeree liable if not executed properly
89. An offer that has unclear major terms, or is missing important terms:
a. can be the basis for an implicit, but not express, contract
b. can be the basis for an express, but not implicit, contract
c. makes the offeree liable if not executed properly
d. makes the offeror liable if not executed properly
e. none of the other choices are correct
90. Acceptance of an offer requires by the offeree.
a. knowledge of the offer
b. understanding of the offer
c. realization of the offer
d. rejection of the offer
e. consideration of the offer
91. Acceptance of an offer requires by the offeree.
a. consideration of the offer
b. understanding of the offer
c. realization of the offer
d. rejection of the offer
e. none of the other choices are correct
92. If communication of an offer occurs after the act of acceptance:
a. a proper acceptance can take place
b. a delayed acceptance takes place
c. a proper acceptance did not take place
d. the offeror must behave as though a proper acceptance took place if the offeree insists
e. the court system will decided whether proper acceptance can take place after the fact
93. If communication of an offer occurs after the act of acceptance:
a. a proper acceptance can take place
b. a delayed acceptance takes place
c. the court system will decided whether proper acceptance can take place after the fact
d. the offeror must behave as though a proper acceptance took place if the offeree insists
e. none of the other choices are correct
94. The owner of a lost dog posts notices that she will pay $200 for its return. Someone who does not know about the
reward finds the dog and returns it. The owner.
a. must pay the reward due to public policy considerations that encourage the completion of such contracts
b. must pay the reward because the unilateral contract was completed
c. must pay the reward because there was an intent to make a valid offer and to be bound by that offer
d. does not have to pay the reward because the offer was not communicated to the person who found the dog
e. does not have to pay the reward because there was no meeting of the minds
95. July 10, 2012, the following ad appeared in the newspaper: “Male Collie, age 2, lost near Highway 85 and Laurens
Road, $250 reward. Call 654-1909.” In July of 2014, someone returns the dog. The owner:
a. must pay the reward
b. must pay the reward unless a cancellation notice regarding the reward was published
c. does not have to pay the reward unless the person can show that they saw the ad
d. does not have to pay the reward⎯too much time has passed for there to be a contract
e. does not have to pay the reward because the dog is dirty
96. An offeror can an offer by withdrawing it.
a. finish
b. complete
c. terminate
d. finalize
e. validate
97. An offeror can an offer by withdrawing it.
a. finish
b. complete
c. validate
d. finalize
e. none of the other choices are correct
98. An offeror can terminate an offer by:
a. withdrawing it
b. extending it
c. lying about it
d. taking it to court
e. finalizing it
99. An offeror can terminate an offer by:
a. finalizing it b.
extending it c.
lying about it
d. taking it to court
e. none of the other choices are correct
100. A(n) is a binding promise to keep an offer open for a specified period of time.
a. terminal contract
b. limited contract
c. express contract
d. explicit contract
e. option contract
101. A(n) is a binding promise to keep an offer open for a specified period of time.
a. terminal contract
b. limited contract
c. express contract
d. explicit contract
e. none of the other choices are correct
102. An option contract requires the offeror to:
a. keep an offer open for a specified period of time
b. offer more than one option
c. keep an offer under a certain price
d. limit an offer to a certain number of offerees
e. give at least a day‘s notice before withdrawing the offer
103. An option contract requires the offeror to:
a. give at least a day‘s notice before withdrawing the offer
b. offer more than one option
c. keep an offer under a certain price
d. limit an offer to a certain number of offerees
e. none of the other choices are correct
104. You pay $200 for the right to be the only buyer a seller will deal with for ten days for a piece of property that is for
sale for $250,000. This is:
a. called a terminable contract
b. called an option contract
c. called a revocable contract
d. not a contract because the consideration is not relevant to the value of the property
e. none of the other choices
105. You pay $200 for the right to be the only buyer a seller will deal with for ten days for a piece of property that is for
sale for $250,000. This is:
a. called a terminable contract
b. called a unilateral contract
c. called a revocable contract
d. not a contract because the consideration is not relevant to the value of the property
e. none of the other choices
106. Termination of the offer can occur through the action of the parties or by the operation of law. The parties can
terminate the offer by:
a. revocation
b. rejection
c. counteroffer
d. revocation or rejection only
e. all of the other choices
107. Termination of the offer can occur through the action of the parties or by the operation of law. The parties can
terminate the offer by:
a. revocation
b. rejection
c. fibulation
d. revocation or rejection
e. any of the other choices
108. Termination of an offer by the parties involved can be done by all of the following except:
a. revocation of offer before acceptance
b. counteroffer
c. revocation after acceptance
d. lapse of time
e. all of the other choices are valid ways to terminate
109. Withdrawal of an offer by the offeror is a:
a. counteroffer
b. revocation
c. reinstitution
d. reinstallation
e. resection
110. Withdrawal of an offer by the offeror is a:
a. counteroffer
b. resection
c. reinstitution
d. reinstallation
e. none of the other choices are correct
111. An effective revocation:
a. must be communicated to the offeree before acceptance
b. must be communicated to the offeree after acceptance
c. need not be communicated to the offeree before acceptance
d. must be filed through a court
e. must be initiated by the offeree
112. An effective revocation:
a. must be initiated by the offeree
b. must be communicated to the offeree after acceptance
c. need not be communicated to the offeree before acceptance
d. must be filed through a court
e. none of the other choices are correct
113. Once an offer has been made, the offeree can terminate the offer by:
a. accepting it
b. rejecting it
c. rescinding it
d. returning it
e. rationalizing it
114. Once an offer has been made, the offeree can terminate the offer by:
a. accepting it
b. rationalizing it
c. rescinding it
d. returning it
e. none of the other choices are correct
115. A proposal by the offeree to change the terms of the original offer is a:
a. final offer
b. proposal of change
c. counteroffer
d. reoffer
e. suboffer
116. A proposal by the offeree to change the terms of the original offer is a:
a. final offer
b. proposal of change
c. suboffer
d. reoffer
e. none of the other choices
117. A counteroffer the original offer.
a. completes
b. terminates
c. enhances
d. improves
e. increases
118. A counteroffer the original offer.
a. completes
b. increases
c. enhances
d. improves
e. none of the other choices are correct
119. If the offeree does not accept the offer, after a reasonable length of time the offer may terminate through:
a. lack of time
b. lapse of time
c. excess of time
d. extension of time
e. loss of time
120. If the offeree does not accept the offer, after a reasonable length of time the offer may terminate through:
a. lack of time
b. loss of time
c. excess of time
d. extension of time
e. none of the other choices are correct