Question 1

What is the legal effect of a counteroffer?

Accepted Answer

An offer is a tentative promise made by

Question 2

When parties are at a distance from each other, an offeree may accept an offer

Accepted Answer

A)  when the offeror tells offeree to do so. 
B)  only by e- mail. 
C)  only in the way proposed by the offeror. 
D)  at any time. 
E)  by mailing its notification of acceptance. 
A)  when the offeror tells offeree to do so. 
B)  only by e- mail. 
C)  only in the way proposed by the offeror. 
D)  at any time. 
E)  by mailing its notification of acceptance.

Question 3

What is a unilateral contract?

Accepted Answer

A unilateral contract is one i

Question 4

What is an offer?

Accepted Answer

An offer is a tentative promis

Question 5

An offer is

Accepted Answer

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

Question 6

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 a

Question 7

Michael is doing his groceries when he sees a price tag that indicates that a large bag of potatoes is priced at $1:00. He goes to the cashier and when the bag is scanned he is told it is priced as $3:99. Michael

Accepted Answer

A)  can sue the shop for false advertizing. 
B)  can do nothing because the store revoked the offer it made to sell the bag of potatoes for $1:00. 
C)  will have to pay the scanned price, because the price tag was only an invitation to treat and not an offer. 
D)  can demand that the bag of potatoes be sold to him for $1:00. 
E)  can sue the store for breach of contract because he accepted the offer of the store and so a contract arose. 
A)  can sue the shop for false advertizing. 
B)  can do nothing because the store revoked the offer it made to sell the bag of potatoes for $1:00. 
C)  will have to pay the scanned price, because the price tag was only an invitation to treat and not an offer. 
D)  can demand that the bag of potatoes be sold to him for $1:00. 
E)  can sue the store for breach of contract because he accepted the offer of the store and so a contract arose.

Question 8

An offer cannot be terminated by

Accepted Answer

A)  a rejection of the offer. 
B)  revocation of the offer. 
C)  sale to another party. 
D)  lapse. 
E)  a counteroffer. 
A)  a rejection of the offer. 
B)  revocation of the offer. 
C)  sale to another party. 
D)  lapse. 
E)  a counteroffer.

Question 9

Which of the following is true about offers?

Accepted Answer

A)  Where the parties are separated by distance, an offeree may accept only in the way specified by the offeror. 
B)  An invitation is an offer. 
C)  An offer cannot lapse. 
D)  An offer is not rejected when the offeree makes a counter- offer. 
E)  An offer cannot be revoked once it is made. 
A)  Where the parties are separated by distance, an offeree may accept only in the way specified by the offeror. 
B)  An invitation is an offer. 
C)  An offer cannot lapse. 
D)  An offer is not rejected when the offeree makes a counter- offer. 
E)  An offer cannot be revoked once it is made.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Explain how a bilateral contract differs from a unilateral contract.

Accepted Answer

In a bilateral contract, both parties tr

Question 12

All contracts generally begin with a/an

Accepted Answer

A)  moral obligation. 
B)  statement. 
C)  acceptance. 
D)  question. 
E)  promise. 
A)  moral obligation. 
B)  statement. 
C)  acceptance. 
D)  question. 
E)  promise.

Question 13

Which of the following is true? An invitation to do business

Accepted Answer

A)  is a kind of offer. 
B)  is an offer. 
C)  is a commitment to enter into a contract upon acceptance. 
D)  is not an offer. 
E)  is a legally binding promise. 
A)  is a kind of offer. 
B)  is an offer. 
C)  is a commitment to enter into a contract upon acceptance. 
D)  is not an offer. 
E)  is a legally binding promise.

Question 14

Joe sees a dog wandering around his yard. He lets the dog in. Later he learns that the dog belongs to Mary, a woman who lives a kilometre away. Joe returns the dog to her the next day. A few days later as Joe is riding his bike, he sees an old advert in which Mary offers to pay $100 to any person who will find and return her dog. Joe realizes that he should have claimed the reward at the time that he returned the dog to Mary and he decides to go to Mary's place. Which of the following is true?

Accepted Answer

A)  Joe will not be entitled to the reward because Mary made no offer. 
B)  Mary's advert is an invitation to do business and cannot give rise to a contract. 
C)  Joe will not be entitled to the reward because he did not see the offer of the reward until he had returned the dog and so he did not act in response to the offer of Mary. 
D)  Joe will be entitled to the reward because he found the dog and returned it. 
E)  Joe will be entitled to the reward because Mary made an offer and his act of finding and returning the dog is an acceptance. 
A)  Joe will not be entitled to the reward because Mary made no offer. 
B)  Mary's advert is an invitation to do business and cannot give rise to a contract. 
C)  Joe will not be entitled to the reward because he did not see the offer of the reward until he had returned the dog and so he did not act in response to the offer of Mary. 
D)  Joe will be entitled to the reward because he found the dog and returned it. 
E)  Joe will be entitled to the reward because Mary made an offer and his act of finding and returning the dog is an acceptance.

Question 15

Explain the difference between an invitation to do business and an offer.

Accepted Answer

An offer to make a contract can be accep

Question 16

What is a negative option?

Accepted Answer

A negative option is a provisi

Question 17

What is a counteroffer? What effect does a counteroffer have on an offer?

Accepted Answer

A counteroffer is made when an offeree r

Question 18

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

Question 19

When communication between parties is by fax, the place where a contract is formed is:

Accepted Answer

A)  where the offeree resides 
B)  where the offeror resides 
C)  where the offeree receives the offer 
D)  where the subject matter is located 
E)  where the offeror receives the acceptance 
A)  where the offeree resides 
B)  where the offeror resides 
C)  where the offeree receives the offer 
D)  where the subject matter is located 
E)  where the offeror receives the acceptance

Question 20

All promises give rise to contracts.

Accepted Answer

A) True 
 B)False

Exam 5: Formation of a Contract: Offer and Acceptance

What is the legal effect of a counteroffer?

When parties are at a distance from each other, an offeree may accept an offer

What is a unilateral contract?

What is an offer?

An offer is

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

Michael is doing his groceries when he sees a price tag that indicates that a large bag of potatoes is priced at $1:00. He goes to the cashier and when the bag is scanned he is told it is priced as $3:99. Michael

An offer cannot be terminated by

Which of the following is true about offers?

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

Explain how a bilateral contract differs from a unilateral contract.

All contracts generally begin with a/an

Which of the following is true? An invitation to do business

Explain the difference between an invitation to do business and an offer.

What is a negative option?

What is a counteroffer? What effect does a counteroffer have on an offer?

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 .

When communication between parties is by fax, the place where a contract is formed is:

All promises give rise to contracts.

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

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

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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