Question 1

If an offer is indefinite or vague or if an essential provision is lacking,no contract arises from an attempt to accept it.

Accepted Answer

A) True 
 B)False

Question 2

Frank is drunk and while laughing hysterically says to Hal "I'll sell you my truck for a buck".Frank has made a valid offer.

Accepted Answer

A) True 
 B)False

Question 3

An offer that is indefinite may be clarified by reference to another writing through:

Accepted Answer

A)  incorporation. 
B)  reference. 
C)  annotation. 
D)  indexing. 
A)  incorporation. 
B)  reference. 
C)  annotation. 
D)  indexing.

Question 4

Under the _______,acceptance of an offer takes place when a properly addressed postage paid mail acceptance is placed in the hands of US Postal Service.

Accepted Answer

A)  mailbox rule 
B)  mail carrier rule 
C)  dispatch rule 
D)  acceptance by mail rule 
A)  mailbox rule 
B)  mail carrier rule 
C)  dispatch rule 
D)  acceptance by mail rule

Question 5

Generally,advertisements,catalog prices,and circulars are offers that can be accepted.

Accepted Answer

A) True 
 B)False

Question 6

To make an offer,the offeror must appear to intend to create a binding obligation.

Accepted Answer

A) True 
 B)False

Question 7

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

Accepted Answer

A) True 
 B)False

Question 8

A firm offer is an offer that states that it is to be irrevocable,or irrevocable for a stated period of time.

Accepted Answer

A) True 
 B)False

Question 9

At an auction sale,each bid is:

Accepted Answer

A)  a counteroffer to the auctioneer's offer of the merchandise. 
B)  an acceptance of the auctioneer's offer. 
C)  an invitation to negotiate. 
D)  an offer. 
A)  a counteroffer to the auctioneer's offer of the merchandise. 
B)  an acceptance of the auctioneer's offer. 
C)  an invitation to negotiate. 
D)  an offer.

Question 10

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers.

Accepted Answer

A) True 
 B)False

Question 11

In general,an acceptance occurs when:

Accepted Answer

A)  a particular form of words is stated to the offeror. 
B)  a particular mode of expression is made to the offeror. 
C)  the offeree reserves the right to reject the offer. 
D)  a clear expression of the offeree's agreement to be bound by the terms of the offer occurs. 
A)  a particular form of words is stated to the offeror. 
B)  a particular mode of expression is made to the offeror. 
C)  the offeree reserves the right to reject the offer. 
D)  a clear expression of the offeree's agreement to be bound by the terms of the offer occurs.

Question 12

Offers,acceptances of offers,and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.

Accepted Answer

A) True 
 B)False

Question 13

An agreement that consists of two or more parts and calls for corresponding performances of each part by the parties is called a:

Accepted Answer

A)  partial contract. 
B)  divisible contract. 
C)  performance contract. 
D)  divided contract. 
A)  partial contract. 
B)  divisible contract. 
C)  performance contract. 
D)  divided contract.

Question 14

In an auction __________,the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Accepted Answer

A)  without reserve 
B)  with reserve 
C)  without preserve 
D)  with preserve 
A)  without reserve 
B)  with reserve 
C)  without preserve 
D)  with preserve

Question 15

A said to B,"I'll give you $100 for that bracelet." B replied,"$135." A said,"No thanks." B then said that B accepted the $100,but A was no longer interested and said there was no contract.B insists there is a contract.Result?

Accepted Answer

A)  A's offer of $100 was open and accepted by B, thereby forming a contract. 
B)  B's counteroffer of $135 terminated A's offer of $100. 
C)  B's statement, "$135" was a negotiating statement that did not terminate A's original offer of $100. 
D)  A's offer of $100 was irrevocable. 
A)  A's offer of $100 was open and accepted by B, thereby forming a contract. 
B)  B's counteroffer of $135 terminated A's offer of $100. 
C)  B's statement, "$135" was a negotiating statement that did not terminate A's original offer of $100. 
D)  A's offer of $100 was irrevocable.

Question 16

An acceptance must be absolute and unconditional.

Accepted Answer

A) True 
 B)False

Question 17

If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted,the offer is automatically terminated.

Accepted Answer

A) True 
 B)False

Question 18

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer,such action is a counteroffer that rejects the original offer.

Accepted Answer

A) True 
 B)False

Question 19

The first statement made by one of two persons can be anyone of the following except:

Accepted Answer

A)  acceptance. 
B)  preliminary discussion. 
C)  invitation to negotiate. 
D)  a survey. 
A)  acceptance. 
B)  preliminary discussion. 
C)  invitation to negotiate. 
D)  a survey.

Question 20

An offer gives the offeror the power to bind the offeree by contract.

Accepted Answer

A) True 
 B)False

Exam 12: Formation of Contracts: Offer and Acceptance

If an offer is indefinite or vague or if an essential provision is lacking,no contract arises from an attempt to accept it.

Frank is drunk and while laughing hysterically says to Hal "I'll sell you my truck for a buck".Frank has made a valid offer.

An offer that is indefinite may be clarified by reference to another writing through:

Under the _______,acceptance of an offer takes place when a properly addressed postage paid mail acceptance is placed in the hands of US Postal Service.

Generally,advertisements,catalog prices,and circulars are offers that can be accepted.

To make an offer,the offeror must appear to intend to create a binding obligation.

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

A firm offer is an offer that states that it is to be irrevocable,or irrevocable for a stated period of time.

At an auction sale,each bid is:

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers.

In general,an acceptance occurs when:

Offers,acceptances of offers,and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.

An agreement that consists of two or more parts and calls for corresponding performances of each part by the parties is called a:

In an auction __________,the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

A said to B,"I'll give you $100 for that bracelet." B replied,"$135." A said,"No thanks." B then said that B accepted the $100,but A was no longer interested and said there was no contract.B insists there is a contract.Result?

An acceptance must be absolute and unconditional.

If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted,the offer is automatically terminated.

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer,such action is a counteroffer that rejects the original offer.

The first statement made by one of two persons can be anyone of the following except:

An offer gives the offeror the power to bind the offeree by contract.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces and the Law

The Constitution as the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environmental of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants' Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents' Estates and Trusts

Filters