Question 1

Explain the theory behind lapse as a way of preventing the formation of a contract.

Accepted Answer

The common law requires that the making

Question 2

Why should you not make an agreement to sell your car to a purchaser "for a fair price"?

Accepted Answer

Although the courts have a policy of mak

Question 3

When the offeror specifically states in the contract that acceptance can be given by performing an act,direct verbal communication of acceptance is not needed to make the contract binding.

Accepted Answer

A) True 
 B)False

Question 4

Not all offers must be communicated to the offeror for a valid contract to arise.Explain.

Accepted Answer

As a general rule,when a person makes an

Question 5

A offers in writing to sell his truck to B for $8000.00.The offer goes on to state that acceptance must be hand-delivered in writing to A.However,B decides to send A a fax in which he accepts A's offer.In this case,

Accepted Answer

A) A must sell his truck to B. 
B) as far as B is concerned,the only important part of A's offer is B's acceptance in any form. 
C) the failure of B to accept the offer by fax causes A's offer to lapse. 
D) B's fax is a proper acceptance of A's offer. 
E) B's fax is not a proper acceptance of A's offer. 
A) A must sell his truck to B. 
B) as far as B is concerned,the only important part of A's offer is B's acceptance in any form. 
C) the failure of B to accept the offer by fax causes A's offer to lapse. 
D) B's fax is a proper acceptance of A's offer. 
E) B's fax is not a proper acceptance of A's offer.

Question 6

What is a negative option?

Accepted Answer

A negative option is a provisi

Question 7

An offer will lapse only if the offeree has had a reasonable time to accept.

Accepted Answer

A) True 
 B)False

Question 8

Mary places a notice in a local variety store.The notice reads as follows: "I shall pay $1000 for the return of my dog,Mundo." Jim sees the notice.Jim finds the dog and returns it to her.Which of the following is true?

Accepted Answer

A) Mary can refuse to pay Jim because Jim did not communicate his acceptance of the offer to Mary,and an acceptance must be communicated to the offeree. 
B) The notice is an invitation to treat and could not give rise to a contract. 
C) Mary makes a counteroffer. 
D) Mary is obliged to pay Jim because by finding the dog,he accepted the contract and no notification was needed. 
E) When Jim finds the dog,he makes the offer and it is up to Mary to determine whether she wishes to accept the offer.Mary is thus entitled to reject the offer. 
A) Mary can refuse to pay Jim because Jim did not communicate his acceptance of the offer to Mary,and an acceptance must be communicated to the offeree. 
B) The notice is an invitation to treat and could not give rise to a contract. 
C) Mary makes a counteroffer. 
D) Mary is obliged to pay Jim because by finding the dog,he accepted the contract and no notification was needed. 
E) When Jim finds the dog,he makes the offer and it is up to Mary to determine whether she wishes to accept the offer.Mary is thus entitled to reject the offer.

Question 9

An offer must be communicated to the offeree.

Accepted Answer

A) True 
 B)False

Question 10

A counter-offer by its very nature contains a rejection of the offer.Explain.

Accepted Answer

When a counter-offer is made,it is the s

Question 11

An offer may be revoked before it is accepted.To be valid,a revocation must be

Accepted Answer

A) promised. 
B) communicated to the offeree before acceptance. 
C) subject to a condition. 
D) loud and clear. 
E) exclusive. 
A) promised. 
B) communicated to the offeree before acceptance. 
C) subject to a condition. 
D) loud and clear. 
E) exclusive.

Question 12

Jack tells Mike,"I'd like to buy your boat for $100 000." Mike,in response,says,"That's too cheap.I'll sell you my boat for $150 000." Mike's statement is a ________ and a ________.

Accepted Answer

A) refusal; new offer 
B) rejection; new offer 
C) refusal; rejection 
D) rejection; counter-offer 
E) rejection; valid offer 
A) refusal; new offer 
B) rejection; new offer 
C) refusal; rejection 
D) rejection; counter-offer 
E) rejection; valid offer

Question 13

An offer is

Accepted Answer

A) a gift. 
B) an agreement to give something to another party. 
C) a donation. 
D) a tentative promise made by one party,subject to a condition or containing a request to the other party. 
E) a gesture made by one party to another to make a donation. 
A) a gift. 
B) an agreement to give something to another party. 
C) a donation. 
D) a tentative promise made by one party,subject to a condition or containing a request to the other party. 
E) a gesture made by one party to another to make a donation.

Question 14

Where is a contract said to be formed?

Accepted Answer

A) at the place where the offer is made 
B) at the place where the acceptance is dropped into a mailbox 
C) at the place where the offer is revoked 
D) at the place where the parties do business 
E) at the place when the acceptance becomes effective 
A) at the place where the offer is made 
B) at the place where the acceptance is dropped into a mailbox 
C) at the place where the offer is revoked 
D) at the place where the parties do business 
E) at the place when the acceptance becomes effective

Exam 5: Formation of a Contract: Offer and Acceptance

Explain the theory behind lapse as a way of preventing the formation of a contract.

Why should you not make an agreement to sell your car to a purchaser "for a fair price"?

When the offeror specifically states in the contract that acceptance can be given by performing an act,direct verbal communication of acceptance is not needed to make the contract binding.

Not all offers must be communicated to the offeror for a valid contract to arise.Explain.

A offers in writing to sell his truck to B for $8000.00.The offer goes on to state that acceptance must be hand-delivered in writing to A.However,B decides to send A a fax in which he accepts A's offer.In this case,

What is a negative option?

An offer will lapse only if the offeree has had a reasonable time to accept.

Mary places a notice in a local variety store.The notice reads as follows: "I shall pay $1000 for the return of my dog,Mundo." Jim sees the notice.Jim finds the dog and returns it to her.Which of the following is true?

An offer must be communicated to the offeree.

A counter-offer by its very nature contains a rejection of the offer.Explain.

An offer may be revoked before it is accepted.To be valid,a revocation must be

Jack tells Mike,"I'd like to buy your boat for $100 000." Mike,in response,says,"That's too cheap.I'll sell you my boat for $150 000." Mike's statement is a ________ and a ________.

An offer is

Where is a contract said to be formed?

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Privacy

Breach of Contract and Its Remedies

Filters

Jack tells Mike,"I'd like to buy your boat for $100 000." Mike,in response,says,"That's too cheap.I'll sell you my boat for $150 000." Mike's statement is a and a .