Question 1

How is a revocation similar to a counteroffer? Explain both.

Accepted Answer

Both a revocation and a counteroffer are

Question 2

What are the elements that must be shown in order to apply the doctrine of promissory estoppel? Provide an example to illustrate them.

Accepted Answer

For the doctrine of promissory estoppel

Question 3

Can an offer be accepted if it is not communicated to the offeree by the offeror? Explain with an example.

Accepted Answer

An offer cannot be accepted if it is not

Question 4

The revocation of an offer is effective when received by the offeree.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true for an auction with reserve?

Accepted Answer

A)  The seller retains the right to refuse the highest bidder. 
B)  Invitations to make an offer are not allowed. 
C)  Goods cannot be withdrawn from sale after the offer has been made. 
D)  A bid once made cannot be withdrawn and is legally binding. 
A)  The seller retains the right to refuse the highest bidder. 
B)  Invitations to make an offer are not allowed. 
C)  Goods cannot be withdrawn from sale after the offer has been made. 
D)  A bid once made cannot be withdrawn and is legally binding.

Question 6

A promise exhibits consideration if a person promises to perform an act or do something he is already under an obligation to do.

Accepted Answer

A) True 
 B)False

Question 7

To meet contractual legality,considerations must be ________.

Accepted Answer

A)  beneficial to both parties involved 
B)  detrimental to both parties involved 
C)  mentioned in writing in the contract 
D)  bargained-for exchange of promise for performance 
A)  beneficial to both parties involved 
B)  detrimental to both parties involved 
C)  mentioned in writing in the contract 
D)  bargained-for exchange of promise for performance

Question 8

The mirror image rule is a rule which states that an acceptance is effective when it is dispatched,even if it is lost in transmission.

Accepted Answer

A) True 
 B)False

Question 9

What are the prerequisites for an offeree to be entitled to collect a reward? Provide an example.

Accepted Answer

To be entitled to collect the reward,the

Question 10

An acceptance for a bilateral contract is effective when it is ________.

Accepted Answer

A)  dispatched by the offeree 
B)  dispatched by the offeror 
C)  received by the offeree 
D)  received by the offeror 
A)  dispatched by the offeree 
B)  dispatched by the offeror 
C)  received by the offeree 
D)  received by the offeror

Question 11

If the offeree uses an unauthorized means of communication,despite a stipulation of express authorization,to transmit the acceptance,the acceptance is not effective.

Accepted Answer

A) True 
 B)False

Question 12

Section 24 of the Restatement (Second)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.

Accepted Answer

A)  order 
B)  offer 
C)  advertisement 
D)  revocation 
A)  order 
B)  offer 
C)  advertisement 
D)  revocation

Question 13

An offer terminates if the subject matter of the offer is destroyed through the fault of either party after the offer's acceptance.

Accepted Answer

A) True 
 B)False

Question 14

A contract that arises from a bargained-for exchange is automatically voided.

Accepted Answer

A) True 
 B)False

Question 15

Mutual assent is not required for a contract to exist.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of a gift promise?

Accepted Answer

A)  A gift promise can be enforced in a court of law. 
B)  A completed gift promise cannot be cancelled for lack of consideration. 
C)  A gift promise contains considerations. 
D)  The promisee can take legal action if the promisor does not uphold the promise. 
A)  A gift promise can be enforced in a court of law. 
B)  A completed gift promise cannot be cancelled for lack of consideration. 
C)  A gift promise contains considerations. 
D)  The promisee can take legal action if the promisor does not uphold the promise.

Question 17

The mirror image rule states that ________.

Accepted Answer

A)  the offeree's counteroffer should match the value of the offeror's offer 
B)  the offeree is allowed to modify the terms of the offer 
C)  the offeror can modify the terms of the offer even after the offeree has accepted it 
D)  the offeree must accept the terms as stated in the offer 
A)  the offeree's counteroffer should match the value of the offeror's offer 
B)  the offeree is allowed to modify the terms of the offer 
C)  the offeror can modify the terms of the offer even after the offeree has accepted it 
D)  the offeree must accept the terms as stated in the offer

Question 18

Which of the following is true for an accord?

Accepted Answer

A)  The accord terminates the original contract. 
B)  The non-breaching party cannot enforce the original contract if the accord is not satisfied. 
C)  It is enforceable even though no new consideration is given. 
D)  An accord is only reached when both parties of the contract fail to meet their contractual obligations. 
A)  The accord terminates the original contract. 
B)  The non-breaching party cannot enforce the original contract if the accord is not satisfied. 
C)  It is enforceable even though no new consideration is given. 
D)  An accord is only reached when both parties of the contract fail to meet their contractual obligations.

Question 19

Which of the following statements is true about a revocation?

Accepted Answer

A)  It can be made by the offeree. 
B)  It needs to reach the offeree to be effective. 
C)  It can be done even after acceptance of the offer. 
D)  It can be applied to an option contract. 
A)  It can be made by the offeree. 
B)  It needs to reach the offeree to be effective. 
C)  It can be done even after acceptance of the offer. 
D)  It can be applied to an option contract.

Question 20

Quentin is a member of the Album of the Month Club and receives a new music CD every month without fail.The Club usually gives its members a time period within which they can reject the selection and stop shipment of the CD,failing which the CD will be shipped.Last month,Quentin received a CD from the Club,a copy of which a friend had already gifted him.He had not found time to reject the offer as he was busy.Quentin could not reject the CD and had to buy it.What kind of an offer-acceptance is exemplified in this scenario?

Accepted Answer

A)  mirror image rule acceptance 
B)  silence as acceptance 
C)  acceptance-upon-dispatch 
D)  unequivocal acceptance 
A)  mirror image rule acceptance 
B)  silence as acceptance 
C)  acceptance-upon-dispatch 
D)  unequivocal acceptance

Exam 10: Agreement and Consideration

How is a revocation similar to a counteroffer? Explain both.

What are the elements that must be shown in order to apply the doctrine of promissory estoppel? Provide an example to illustrate them.

Can an offer be accepted if it is not communicated to the offeree by the offeror? Explain with an example.

The revocation of an offer is effective when received by the offeree.

Which of the following is true for an auction with reserve?

A promise exhibits consideration if a person promises to perform an act or do something he is already under an obligation to do.

To meet contractual legality,considerations must be ________.

The mirror image rule is a rule which states that an acceptance is effective when it is dispatched,even if it is lost in transmission.

What are the prerequisites for an offeree to be entitled to collect a reward? Provide an example.

An acceptance for a bilateral contract is effective when it is ________.

If the offeree uses an unauthorized means of communication,despite a stipulation of express authorization,to transmit the acceptance,the acceptance is not effective.

Section 24 of the Restatement (Second)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.

An offer terminates if the subject matter of the offer is destroyed through the fault of either party after the offer's acceptance.

A contract that arises from a bargained-for exchange is automatically voided.

Mutual assent is not required for a contract to exist.

Which of the following is true of a gift promise?

The mirror image rule states that ________.

Which of the following is true for an accord?

Which of the following statements is true about a revocation?

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