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121. Termination of an offer by operation of law does not occur:
a. if a law is passed making the subject of the offer illegal
b. by death or insanity of the offeror
c. if the subject matter of the offer is destroyed
d. by physical incapacity of the offeree
e. all of the other choices are correct and termination occurs
122. Termination of an offer by operation of law occurs:
a. if the offeree decides to revocate
b. by death of the offeror
c. if the offeree claims a lapse has occurred
d. if the offer was an option contract
e. all of the other choices are correct and termination occurs
123. An offer that terminates by operation of law through
offer illegal after it has been made.
a. mental incapacity
b. court intervention
c. real illegality
d. intervening illegality
e. intervening legality
occurs when a court decision or legislation makes an
124. An offer that terminates by operation of law through
offer illegal after it has been made.
a. mental incapacity
b. court intervention
c. real illegality
d. intervening legality
e. none of the other choices are correct
occurs when a court decision or legislation makes an
125. If the subject matter of the offer is destroyed:
a. the contract is terminated by the operation of law
b. the contract is still binding
c. the offeror must replace the subject matter
d. the offeree must replace the subject matter
e. the court takes over the contract
126. If the subject matter of the offer is destroyed:
a. the court takes over the contract
b. the contract is still binding
c. the offeror must replace the subject matter
d. the offeree must replace the subject matter
e. none of the other choices are correct
127. If an offeror or offeree dies:
a. the contract is terminated by the operation of law
b. the contract is still binding
c. the offeror or offeree's estate must fulfill the contract
d. the closest relative of the offeror or offeree inherits the contract
e. the court takes over the contract
128. If an offeror or offeree dies:
a. the court takes over the contract
b. the contract is still binding
c. the offeror or offeree's estate must fulfill the contract
d. the closest relative of the offeror or offeree inherits the contract
e. none of the other choices are correct
129. is an offeree's expression of assent or agreement to the terms of an offer.
a. agreement
b. unilateral acknowledgement
c. bilateral acknowledgement
d. acceptance
e. understanding
130. is an offeree's expression of assent or agreement to the terms of an offer.
a. agreement
b. unilateral acknowledgement
c. bilateral acknowledgement
d. understanding
e. none of the other choices are correct
131. An effective acceptance must be:
a. unconditional
b. unequivocal
c. properly communicated
d. all of the other specific choices are correct
e. none of the other specific choices are correct
132. An effective acceptance must be:
a. unconditional
b. equivocal
c. improperly communicated
d. all of the other specific choices are correct
e. none of the other specific choices are correct
133. An effective acceptance must be:
a. conditional
b. unequivocal
c. witnessed in court
d. all of the other specific choices are correct
e. none of the other specific choices are correct
134. An effective acceptance must be:
a. witnessed in court
b. equivocal
c. properly communicated
d. all of the other specific choices are correct
e. none of the other specific choices are correct
135. A contract formed by performance of actions requested by another party may be called:
a. a voidable contract
b. a contract with a promissory estoppel clause
c. a pre-textual agreement
d. a unilateral contract
e. a parol evidence contract
136. A contract formed by performance of actions requested by another party is:
a. a voidable contract
b. a contract with a promissory estoppel clause
c. a pre-textual agreement
d. a parol evidence contract
e. none of the other choices
137. "Bozo, if you wash my car I will pay you $10." Bozo says nothing but washes the car later that day. There is what
may be called:
a. a voidable contract
b. an unenforceable contract
c. a unilateral contract
d. an executory contract
e. no contract
138. "Bozo, if you wash my car I will pay you $10." Bozo says nothing but washes the car later that day. There is what
may be called:
a. a voidable contract
b. an unenforceable contract
c. an executory contract
d. no contract at all
e. none of the other choices
139. When someone accepts an offer by an exchange of mutual promises, what kind of contract has been formed?
a. implied
b. unilateral
c. executed
d. bilateral
e. commercial
140. When someone accepts an offer by an exchange of mutual promises, what kind of contract has been formed?
a. implied
b. unilateral
c. executed
d. commercial
e. none of the other choices
141. Anne says, "I'll sell you my car for $2,500." Steve says, "I sure would like to buy it." We have an offer and
acceptance:
a. and a valid contract
b. but no valid contract until delivery time is established
c. but no valid contract because the car is only worth $500, which is insufficient consideration
d. but no valid contract because no witnesses exist
e. none of the other choices; there is no acceptance
142. A(n) contract is one that is accepted by performance.
a. bilateral
b. unilateral
c. real
d. performance
e. nonbinding
143. A contract is one that is accepted by performance.
a. bilateral
b. nonbinding
c. real
d. performance
e. none of the other choices are correct
144. Roberta says "Susan, I will sell you my car for $5,000." Susan says, "I'll give you $4,500." Roberta says "No." Later
Susan calls Roberta and says, "I have $5,000 and want the car." Roberta:
a. must sell the car for $5,000, since the offer was accepted
b. must sell the car for $5,000 since the offer was accepted in a timely fashion
c. does not have to sell the car due to the counteroffer, which is a rejection
d. does not have to sell the car because her offer was not accepted in a timely fashion
e. none of the other choices
145. Rea says "Susan, I will sell you my car for $5,000." Susan says, "I'll give you $4,500." Rea says "No." Later Susan
calls Rea and says, "I have $5,000 and want the car." Rea:
a. must sell the car for $5,000, since the offer was accepted
b. must sell the car for $5,000 since the offer was accepted in a timely fashion
c. does not have to sell the car because there never was a firm offer by her to sell
d. does not have to sell the car to Susan because her offer was not accepted quickly enough
e. none of the other choices
146. In Certified Fire Protection v. Precision Construction, Precision accepted a winning bid from Certified for it
to install a fire suppression sprinkler system. Later the two parties got into a fight over some details in the
contract, which was never signed. The courts held that the contract was:
a. properly accepted, so there was a binding contract
b. accepted with minor modifications that were not critical to the intent of the contract, so it was binding
c. never formed as there were disagreements over major provisions
d. never formed because Certified was not licensed by the state to do such work
e. none of the other choices
147. In Certified Fire Protection v. Precision Construction, Precision accepted a winning bid from Certified for it
to install a fire suppression sprinkler system. Later the two parties got into a fight over some details in the
contract, which was never signed. The courts held that the contract was:
a. properly accepted, so there was a binding contract
b. accepted with minor modifications that were not critical to the intent of the contract, so it was binding
c. never formed because the Statute of Limitations had been violated due to the fact that it would take more
than a year to complete
d. never formed because Certified was not licensed by the state to do such work
e. none of the other choices
148. In Certified Fire Protection v. Precision Construction, Precision accepted a winning bid from Certified for it
to install a fire suppression sprinkler system. Later the two parties got into a fight over some details in the
contract, which was never signed. The courts held that the contract was:
a. a binding contract had been formed, even though only one of the parties had signed the agreement
b. a binding contract was never formed because the parties did not agree on some major terms needed for
an agreement
c. there was no binding contract because Certified failed to accept in the manner prescribed in the contract
that was offered
d. there was no binding contract because Precision failed to make the initial payment needed to bind
Certified
e. there was no binding contract because the document "shocked the conscience of the court"
149. In Certified Fire Protection v. Precision Construction, Precision accepted a winning bid from Certified for it
to install a fire suppression sprinkler system. Later the two parties got into a fight over some details in the
contract, which was never signed. The courts held that the contract was:
a. a binding contract had been formed, even though only one of the parties had signed the agreement
b. a binding contract was never formed because the parties, despite not signing, clearly intended to comply
with the terms originally agreed to in the document
c. there was no binding contract because Certified failed to accept in the manner prescribed in the contract
that was offered
d. there was no binding contract because Precision failed to make the initial payment needed to bind
Certified
e. none of the other choices are correct
150. Acceptance of an offer must be unequivocal or .
a. final
b. written
c. unwritten
d. definite
e. equivocal
151. Acceptance of an offer must be unequivocal or .
a. final
b. written
c. unwritten
d. equivocal
e. none of the other choices are correct
152. Acceptance of an offer must be or definite.
a. final
b. written
c. unwritten
d. unequivocal
e. equivocal
153. Acceptance of an offer must be or definite.
a. final
b. written
c. unwritten
d. equivocal
e. none of the other choices are correct
154. of an offer must be unequivocal or definite.
a. Acceptance
b. Rejection
c. Resection
d. Consideration
e. Revelation
155. of an offer must be unequivocal or definite.
a. Revelation
b. Rejection
c. Resection
d. Consideration
e. none of the other choices are correct
156. The general rule regarding acceptance is:
a. a reasonable acceptance is valid when sent to the offeror
b. all acceptances are valid and binding on offerors
c. acceptances are valid when received by offerors
d. an acceptance will be valid only if mailed to offeror
e. an acceptance is a void unless received by offeror within forty-eight hours of the offer
157. The general rule regarding acceptance is:
a. an acceptance is a void unless received by offeror within forty-eight hours of the offer
b. all acceptances are valid and binding on offerors
c. acceptances are valid when received by offerors
d. an acceptance will be valid only if mailed to offeror
e. none of the other choices
158. A acceptance is properly communicated:
a. when it is sent by the offeree
b. when it is received by the offeror
c. when it is sent by the offeror
d. any of the other specific choices are proper acceptances
e. none of the other choices are correct
159. A acceptance is properly communicated at the point:
a. when the offeree signs the contract
b. when it is received by the offeror
c. when it is sent by the offeror
d. only if certified or registered mail is used
e. none of the other choices are correct
160. is something of value or something bargained for in exchange for a promise.
a. Consideration
b. Realization
c. Compensation
d. A bargaining chip
e. An asset
161. is something of value or something bargained for in exchange for a promise.
a. An asset
b. Realization
c. Compensation
d. A bargaining chip
e. none of the other choices are correct
162. Consideration is defined as something of value or something bargained for in exchange for a promise. Normally, if
consideration is absent:
a. only the offeree may enforce the promise
b. only the offeror may enforce the promise
c. either party may enforce the promise
d. neither party may enforce the promise
e. none of the other choices
163. Consideration is defined as something of value or something bargained for in exchange for a promise. Normally, if
consideration is absent:
a. only the offeree may enforce the promise
b. only the offeror may enforce the promise
c. either party may enforce the promise
d. the value of the exchange fails to meet the "market value" test
e. none of the other choices
164. Consideration will be present if:
a. the promisor receives a legal benefit
b. the promisee receives a legal benefit
c. the promisee suffers a legal detriment
d. the promisor receives a legal benefit and the promisee suffers a legal detriment
e. all of the other choices are correct
165. Without consideration:
a. only the offeree can enforce the promise or agreement
b. only the offeror can enforce the promise or agreement
c. neither party can enforce the promise or agreement
d. both parties can enforce the promise or agreement
e. only a court can enforce the promise or agreement
166. Without consideration:
a. only the offeree can enforce the promise or agreement
b. only the offeror can enforce the promise or agreement
c. only a court can enforce the promise or agreement
d. both parties can enforce the promise or agreement
e. none of the other choices are correct
167. Consideration is the element of a contract that:
a. allows it to be a gift
b. prevents it from being a gift
c. gives the offeror a better deal
d. gives the offeree a better deal
e. provides the terms of contract execution
168. Consideration is the element of a contract that:
a. allows it to be a gift
b. provides the terms of acceptance
c. gives the offeror a better deal
d. gives the offeree a better deal
e. none of the other choices are correct
169. Twenty years after you take this class you are successful and wealthy. Knowing that this class was the key to your
success, you look up your old professor and send a letter saying, "Because you helped me so much, I am going to
send you a check for $100,000." Later you come to your senses and do not send the check. Your old professor
sues you for the money:
a. you have to pay; there is a valid contract
b. you do not have to pay; the professor did not send a timely letter of acceptance
c. you do not have to pay; there is a lack of consideration
d. you do not have to pay; promissory estoppel applies
e. you do not have to pay; you were legally insane
170. Twenty years after you take this class you are successful and wealthy. Knowing that this class was the key to your
success, you look up your old professor and send a letter saying, "Because you helped me so much, I am going to
send you a check for $100,000." Later you come to your senses and do not send the check. Your old professor
sues you for the money:
a. you have to pay; there is a valid contract
b. you do not have to pay; the professor did not send a timely letter of acceptance
c. you do not have to pay; you were legally insane
d. you do not have to pay; promissory estoppel applies
e. none of the other choices
171. An exchange is consideration if it:
a. creates a legal detriment to the promisee
b. creates a legal benefit to the promisor
c. creates both a legal detriment to the promisee and a legal benefit to the promisor
d. all of the other specific choices are correct
e. none of the other specific choices are correct
172. A(n) is an act, or a promise to act, or the refraining from an action, such as giving up a legal right.
a. legal detriment
b. illegal detriment
c. conscientious detriment
d. neutral detriment
e. legal benefit
173. A(n) is an act, or a promise to act, or the refraining from an action, such as giving up a legal right.
a. legal benefit
b. illegal detriment
c. conscientious detriment
d. neutral detriment
e. none of the other choices are correct
174. A to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to
act, or refraining from doing some act.
a. legal detriment
b. legal right
c. legal benefit
d. neutral benefit
e. conscious detriment
175. A to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to
act, or refraining from doing some act.
a. legal detriment
b. legal right
c. conscious detriment
d. neutral benefit
e. none of the other choices are correct
176. If the values of the items exchanged in a contract are unequal courts generally:
a. hold that the contract is not binding
b. require the parties to rewrite the contract
c. support the contract anyway
d. require the offeror to add something to the contract
e. require the offeree to add something to the contract
