Question 1

The death or incompetency of either the offeror or the offeree terminates an option contract.

Accepted Answer

A) True 
 B)False  False

Question 2

Most "best efforts" contracts do not meet consideration requirements because the promise is a promise to try,but not an absolute promise of performance.

Accepted Answer

A) True 
 B)False  False

Question 3

Most offers and contracts set forth ________ terms that identify the parties,the subject matter of the contract,the consideration to be paid by the parties,and the time of performance.

Accepted Answer

A)  conditional 
B)  hypothetical 
C)  express 
D)  implied 
E)  subjective 
A)  conditional 
B)  hypothetical 
C)  express 
D)  implied 
E)  subjective C

Question 4

Why do courts generally not enforce a promise to make a gift? Doesn't this encourage persons to make such promises when they don't intend to actually make the gift? Isn't it wrong to make a promise and break it? Should courts enforce gift promises?

Accepted Answer

In most cases when a gift promise is bro

Question 5

An offer for a reward can be accepted by a promise to perform.

Accepted Answer

A) True 
 B)False

Question 6

An acceptance is "a manifestation of assent by the offeror to the terms of the offer in a manner invited or required by the acceptance,as measured by the subjective theory of contracts."

Accepted Answer

A) True 
 B)False

Question 7

An agreement that lacks consideration:

Accepted Answer

A)  is void as against public policy. 
B)  is not enforceable, and thus cannot be performed. 
C)  is enforceable only if in writing. 
D)  will be enforced only against the party who gave consideration. 
E)  will not be an enforceable contract, but may be enforced under the theory of promissory estoppel. 
A)  is void as against public policy. 
B)  is not enforceable, and thus cannot be performed. 
C)  is enforceable only if in writing. 
D)  will be enforced only against the party who gave consideration. 
E)  will not be an enforceable contract, but may be enforced under the theory of promissory estoppel.

Question 8

An offer to pay a reward is an offer to form a(n)________ contract.

Accepted Answer

A)  conditional 
B)  executory 
C)  executed 
D)  unilateral 
E)  bilateral 
A)  conditional 
B)  executory 
C)  executed 
D)  unilateral 
E)  bilateral

Question 9

In an auction,what role do the bidders play?

Accepted Answer

A)  The bidders are always offerees. 
B)  The bidders are always offerors. 
C)  The bidders can be offerees or offerors, and this depends on whether the bids are made orally or in writing. 
D)  The bidders can be offerees or offerors, and this depends on whether the auction is with reserve or without reserve. 
E)  The bidders are "buyers", and the terms "offeree" and "offeror" have no legal significance. 
A)  The bidders are always offerees. 
B)  The bidders are always offerors. 
C)  The bidders can be offerees or offerors, and this depends on whether the bids are made orally or in writing. 
D)  The bidders can be offerees or offerors, and this depends on whether the auction is with reserve or without reserve. 
E)  The bidders are "buyers", and the terms "offeree" and "offeror" have no legal significance.

Question 10

The offeror says,"I'll sell you my car for $15,000." The offeree says,"I accept your offer but will pay $14,000." What is true at this point?

Accepted Answer

A)  There are two open offers. 
B)  This was a conditional acceptance. 
C)  The offeror must sell the car to the offeree if the offeree gives the offeror $15,000. 
D)  The only open offer is for $14,000. 
E)  The offeree's statement was a revocation of the $15,000 offer. 
A)  There are two open offers. 
B)  This was a conditional acceptance. 
C)  The offeror must sell the car to the offeree if the offeree gives the offeror $15,000. 
D)  The only open offer is for $14,000. 
E)  The offeree's statement was a revocation of the $15,000 offer.

Question 11

The intent to enter into a contract is determined using the ________ theory of contracts.

Accepted Answer

A)  subjective 
B)  objective 
C)  prospective 
D)  conjectural 
E)  hypothetical 
A)  subjective 
B)  objective 
C)  prospective 
D)  conjectural 
E)  hypothetical

Question 12

Which of the following is not required for an offer (and resulting contract)to be considered definite?

Accepted Answer

A)  identification of the parties 
B)  identification of the subject matter and quantity 
C)  identification of one or more applicable express and/or implied warranties 
D)  the consideration to be paid 
E)  the time of performance 
A)  identification of the parties 
B)  identification of the subject matter and quantity 
C)  identification of one or more applicable express and/or implied warranties 
D)  the consideration to be paid 
E)  the time of performance

Question 13

Which of the following is a requirement of a valid offer?

Accepted Answer

A)  It must be unambiguous. 
B)  It must be written. 
C)  It must follow the mirror-image rule. 
D)  It must be unambiguous, and it must be written. 
E)  It must be written, and it must follow the mirror-image rule. 
A)  It must be unambiguous. 
B)  It must be written. 
C)  It must follow the mirror-image rule. 
D)  It must be unambiguous, and it must be written. 
E)  It must be written, and it must follow the mirror-image rule.

Question 14

How can the concept of unforeseen difficulties affect whether a contract meets the consideration requirements?

Accepted Answer

A)  Unforeseen difficulties can allow a promise of illegal consideration to meet the consideration requirements. 
B)  Unforeseen difficulties can convert an illusory promise to a valid binding promise. 
C)  Unforeseen difficulties can result in past consideration meeting the consideration requirements. 
D)  Unforeseen difficulties can result in a contractor's promise to complete an existing contract being supported by new consideration rather than being considered a preexisting duty. 
E)  Unforeseen difficulties cannot affect whether a contract meets consideration requirements. 
A)  Unforeseen difficulties can allow a promise of illegal consideration to meet the consideration requirements. 
B)  Unforeseen difficulties can convert an illusory promise to a valid binding promise. 
C)  Unforeseen difficulties can result in past consideration meeting the consideration requirements. 
D)  Unforeseen difficulties can result in a contractor's promise to complete an existing contract being supported by new consideration rather than being considered a preexisting duty. 
E)  Unforeseen difficulties cannot affect whether a contract meets consideration requirements.

Question 15

The offeror is the party with the power to decide whether to create a contract.

Accepted Answer

A) True 
 B)False

Question 16

Gift promises are also called fortuitous promises.

Accepted Answer

A) True 
 B)False

Question 17

A counteroffer by the offeree simultaneously terminates the offeror's offer and creates a new offer.

Accepted Answer

A) True 
 B)False

Question 18

Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror,such as the sale of property of the offeror.

Accepted Answer

A) True 
 B)False

Question 19

In general,who can effectively accept an offer for a unilateral contract?

Accepted Answer

A)  any person who performs the action requested in the offer, which can occur either before or after learning of the offer 
B)  any person who performs the action requested in the offer, so long as the offer had been communicated to that person prior to the performance of the act 
C)  any person who promises to perform the action requested in the offer, which can occur either before or after learning of the offer 
D)  any person who promises to perform the action requested in the offer, so long as the offer had been communicated to that person prior to the making of the return promise 
E)  any person willing to perform the contractual duties before being paid 
A)  any person who performs the action requested in the offer, which can occur either before or after learning of the offer 
B)  any person who performs the action requested in the offer, so long as the offer had been communicated to that person prior to the performance of the act 
C)  any person who promises to perform the action requested in the offer, which can occur either before or after learning of the offer 
D)  any person who promises to perform the action requested in the offer, so long as the offer had been communicated to that person prior to the making of the return promise 
E)  any person willing to perform the contractual duties before being paid

Question 20

Sam places an advertisement in the newspaper for his Dodge Viper that states,"I hate to sell it,but high insurance costs force me to sell my 2002 Dodge Viper.The first $45,000 cash takes it." Betty goes to look at the car and says to Sam,"I'll give you $42,000 for it." Sam then says,"That's not the deal." Betty says nothing more and leaves.A couple of weeks later Betty notices that the ad is still in the paper,so she takes $45,000 cash over to Sam's house.He hasn't sold the car,but says to Betty,"You rejected my offer of $45,000 so I don't have to sell it to you for that.You can have it for $47,000." Is Sam obligated to sell the car to Betty for $45,000? Give all possible arguments for each party.

Accepted Answer

The original ad was probably an offer fo

Exam 10: Agreement and Consideration

The death or incompetency of either the offeror or the offeree terminates an option contract.

Most "best efforts" contracts do not meet consideration requirements because the promise is a promise to try,but not an absolute promise of performance.

Most offers and contracts set forth ________ terms that identify the parties,the subject matter of the contract,the consideration to be paid by the parties,and the time of performance.

Why do courts generally not enforce a promise to make a gift? Doesn't this encourage persons to make such promises when they don't intend to actually make the gift? Isn't it wrong to make a promise and break it? Should courts enforce gift promises?

An offer for a reward can be accepted by a promise to perform.

An acceptance is "a manifestation of assent by the offeror to the terms of the offer in a manner invited or required by the acceptance,as measured by the subjective theory of contracts."

An agreement that lacks consideration:

An offer to pay a reward is an offer to form a(n)________ contract.

In an auction,what role do the bidders play?

The offeror says,"I'll sell you my car for $15,000." The offeree says,"I accept your offer but will pay $14,000." What is true at this point?

The intent to enter into a contract is determined using the ________ theory of contracts.

Which of the following is not required for an offer (and resulting contract)to be considered definite?

Which of the following is a requirement of a valid offer?

How can the concept of unforeseen difficulties affect whether a contract meets the consideration requirements?

The offeror is the party with the power to decide whether to create a contract.

Gift promises are also called fortuitous promises.

A counteroffer by the offeree simultaneously terminates the offeror's offer and creates a new offer.

Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror,such as the sale of property of the offeror.

In general,who can effectively accept an offer for a unilateral contract?

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