Question 1

Goods displayed on shelves in a store constitute an offer.

Accepted Answer

A) True 
 B)False  False

Question 2

An offer must be communicated to the offeree.

Accepted Answer

A) True 
 B)False  True

Question 3

An offer comes to an end when it lapses.

Accepted Answer

A) True 
 B)False  True

Question 4

Where is a contract said to be formed?

Accepted Answer

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

Question 5

When an offeree receives an offer and then varies some of its terms, the offeree

Accepted Answer

A)  has revoked the offer and modified his acceptance. 
B)  has modified his acceptance of the offer. 
C)  has accepted the counteroffer. 
D)  has rejected the offer. 
E)  has accepted the offer. 
A)  has revoked the offer and modified his acceptance. 
B)  has modified his acceptance of the offer. 
C)  has accepted the counteroffer. 
D)  has rejected the offer. 
E)  has accepted the offer.

Question 6

Jack is speaking to Michael and Michael a happens to mention that he will be painting is home soon. Jack, who is in some financial difficulty decides to paint Michael's home in the hope that Michael will pay for the service. One weekend, when Michael is away, Jack paints the whole house. He believes that he is entitled to approximately $1,500. When Michael returns, Jack approaches him and asks for $1,500. Which of the following is true?

Accepted Answer

A)  Jack's conduct is an invitation to do business that has not been accepted by Michael and so Michael is not obliged to pay him. 
B)  Jack, by painting the home, makes an offer that Michael is free to accept or reject. 
C)  When Michael mentions the need to paint his home to Jack, he indirectly makes an offer that Jack accepts by painting the home. 
D)  Michael has benefited from the painted home and so he is obliged to pay for it. 
E)  Michael is not obliged to pay for the work done because he was never made any offer. 
A)  Jack's conduct is an invitation to do business that has not been accepted by Michael and so Michael is not obliged to pay him. 
B)  Jack, by painting the home, makes an offer that Michael is free to accept or reject. 
C)  When Michael mentions the need to paint his home to Jack, he indirectly makes an offer that Jack accepts by painting the home. 
D)  Michael has benefited from the painted home and so he is obliged to pay for it. 
E)  Michael is not obliged to pay for the work done because he was never made any offer.

Question 7

An invitation to do business is not an offer.

Accepted Answer

A) True 
 B)False

Question 8

An acceptance must always be communicated to the offeror for a valid contract to arise.

Accepted Answer

A) True 
 B)False

Question 9

Revocation takes effect:

Accepted Answer

A)  when sent 
B)  when the offeror becomes bankrupt 
C)  when received 
D)  when an offeror contracts with someone other than the offeree 
E)  none of the above 
A)  when sent 
B)  when the offeror becomes bankrupt 
C)  when received 
D)  when an offeror contracts with someone other than the offeree 
E)  none of the above

Question 10

An advert can never be an offer.

Accepted Answer

A) True 
 B)False

Question 11

An acceptance of an offer must be

Accepted Answer

A)  positive. 
B)  by conduct only. 
C)  made slowly. 
D)  in writing only. 
E)  loud and clear. 
A)  positive. 
B)  by conduct only. 
C)  made slowly. 
D)  in writing only. 
E)  loud and clear.

Question 12

Explain how the rule concerning withdrawal of an offer by post, differs from that concerning the time of acceptance by post.

Accepted Answer

When the post is used to accept an offer

Question 13

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

Accepted Answer

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

Question 14

Mary places an notice in a local variety store. The notice is as follows: "I shall pay $1,000 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)  The notice is an invitation to treat and could not give rise to a contract. 
B)  Mary makes a counteroffer. 
C)  Mary is obliged to pay Jim because by finding the dog, he accepted the contract and no notification was needed. 
D)  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. 
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)  The notice is an invitation to treat and could not give rise to a contract. 
B)  Mary makes a counteroffer. 
C)  Mary is obliged to pay Jim because by finding the dog, he accepted the contract and no notification was needed. 
D)  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. 
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 15

Silence can be a sufficient method of acceptance .

Accepted Answer

A)  when the offeree forgot to communicate its acceptance 
B)  when the contract is a unilateral contract 
C)  when the contract is a bilateral contract 
D)  when the offeror leaves the jurisdiction after making the offer 
E)  if the parties to a contract have habitually used method to communicate assent 
A)  when the offeree forgot to communicate its acceptance 
B)  when the contract is a unilateral contract 
C)  when the contract is a bilateral contract 
D)  when the offeror leaves the jurisdiction after making the offer 
E)  if the parties to a contract have habitually used method to communicate assent

Question 16

Margaret finds a stray cat and takes it in. The following day she is speaking to some friends and learns that Kelly, a woman who lives some distance away, has lost a cat. She goes around to the home of Kelly, leaves the cat in the yard and leaves a note for Kelly. The next day she gets a voice mail message from Kelly thanking her. A few days later Margaret sees a notice in which Kelly offers to pay $500 to anyone who returns her cat. Margaret who needs some cash returns to Kelly's home and demands the $500 reward. Which of the following is true?

Accepted Answer

A)  Kelly's notice is an invitation to treat. 
B)  Margaret did no know of the offer before she returned the cat. So she could not have been accepting the offer when she returned the cat. No contract arose. There is thus no obligation on Kelly to pay the $500. 
C)  By returning the cat, Margaret performed the contract and so has to be paid. Margaret's performance gives rise to a unilateral contract. 
D)  Because Margaret did not demand the $500 when she returned the cat, she cannot go back and request it. The offer has lapsed. 
E)  Kelly and Margaret have a bilateral contract. 
A)  Kelly's notice is an invitation to treat. 
B)  Margaret did no know of the offer before she returned the cat. So she could not have been accepting the offer when she returned the cat. No contract arose. There is thus no obligation on Kelly to pay the $500. 
C)  By returning the cat, Margaret performed the contract and so has to be paid. Margaret's performance gives rise to a unilateral contract. 
D)  Because Margaret did not demand the $500 when she returned the cat, she cannot go back and request it. The offer has lapsed. 
E)  Kelly and Margaret have a bilateral contract.

Question 17

Jack sends a letter to Mary in response to Mary's offer to sell. Jack accepts the offer without qualification. Mary's position is that of

Accepted Answer

A)  instigator. 
B)  an offeree. 
C)  a guarantor. 
D)  an offeror. 
E)  a counter offer position. 
A)  instigator. 
B)  an offeree. 
C)  a guarantor. 
D)  an offeror. 
E)  a counter offer position.

Question 18

We study business contract law

Accepted Answer

A)  in order to understand legislation that pertains to business. 
B)  in order to understand and bargain for contractual obligations. 
C)  in order to know when a binding contract is entered into. 
D)  in order to resolve commercial disputes. 
E)  in order to know consequences of breaking one's obligation. 
A)  in order to understand legislation that pertains to business. 
B)  in order to understand and bargain for contractual obligations. 
C)  in order to know when a binding contract is entered into. 
D)  in order to resolve commercial disputes. 
E)  in order to know consequences of breaking one's obligation.

Question 19

Joe find a dog wandering in his yard and he let it into the house. A day later he sees an advert on a tree stating that the owner of the dog will pay $100 to anyone who finds and returns the dog to the local SPCA office. Joe takes the dog to the local SPCS office. Which of the following is true?

Accepted Answer

A)  The kind of advert that is placed on the tree cannot give rise to a contract. 
B)  Joe will be entitled to the reward because his performance of the obligation, in response to the offer, is all that is needed in a unilateral contract. 
C)  The advert on the tree is an invitation to do business and cannot give rise to a contract. 
D)  When Joe takes the dog to the SPCA, he makes the offer and if the SPCA accepts the offer, they are obliged to pay him. 
E)  Joe did not communicate his acceptance of the offer to Mary and so no contract arose. 
A)  The kind of advert that is placed on the tree cannot give rise to a contract. 
B)  Joe will be entitled to the reward because his performance of the obligation, in response to the offer, is all that is needed in a unilateral contract. 
C)  The advert on the tree is an invitation to do business and cannot give rise to a contract. 
D)  When Joe takes the dog to the SPCA, he makes the offer and if the SPCA accepts the offer, they are obliged to pay him. 
E)  Joe did not communicate his acceptance of the offer to Mary and so no contract arose.

Question 20

When an offer is not accepted, it will

Accepted Answer

A)  end. 
B)  terminate. 
C)  lapse. 
D)  be void. 
E)  no longer be an offer. 
A)  end. 
B)  terminate. 
C)  lapse. 
D)  be void. 
E)  no longer be an offer.

Exam 5: Formation of a Contract: Offer and Acceptance

Goods displayed on shelves in a store constitute an offer.

An offer must be communicated to the offeree.

An offer comes to an end when it lapses.

Where is a contract said to be formed?

When an offeree receives an offer and then varies some of its terms, the offeree

An invitation to do business is not an offer.

An acceptance must always be communicated to the offeror for a valid contract to arise.

Revocation takes effect:

An advert can never be an offer.

An acceptance of an offer must be

Explain how the rule concerning withdrawal of an offer by post, differs from that concerning the time of acceptance by post.

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

Mary places an notice in a local variety store. The notice is as follows: "I shall pay $1,000 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?

Silence can be a sufficient method of acceptance .

Jack sends a letter to Mary in response to Mary's offer to sell. Jack accepts the offer without qualification. Mary's position is that of

We study business contract law

Joe find a dog wandering in his yard and he let it into the house. A day later he sees an advert on a tree stating that the owner of the dog will pay $100 to anyone who finds and returns the dog to the local SPCA office. Joe takes the dog to the local SPCS office. Which of the following is true?

When an offer is not accepted, it will

Law and Society

The Machinery of Justice

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Formation of a Contract: Consideration, and Intention to Create Legal Relations

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

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

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