Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Contractual intention is determined by objective standards.

Accepted Answer

A) True 
 B)False

Question 3

A counteroffer is a(n):

Accepted Answer

A)  acceptance of the original offer. 
B)  rejection of the original offer. 
C)  acceptance of the original offer and an invitation to further negotiate. 
D)  a revocation of the original offer. 
A)  acceptance of the original offer. 
B)  rejection of the original offer. 
C)  acceptance of the original offer and an invitation to further negotiate. 
D)  a revocation of the original offer.

Question 4

On April 15,Morgan sent a letter to Clark offering to sell her business to Clark for $200,000.The offer stated that it would expire on May 1.On April 30,Morgan sent another letter to Clark that stated that she was withdrawing the offer.Clark received that letter on May 1.Also on April 30,Clark sent a letter to Morgan accepting the offer.Morgan received that letter of acceptance on May 1.Morgan refused to sell the business to Clark,claiming that no contract had been formed.Clark brought suit to enforce the contract against Morgan.Based on what you have learned in thisChapter,decide the probable outcome of the case.

Accepted Answer

Judgment would be for Clark.Per the mail

Question 5

Advertisements that call for an act may be deemed to be a unilateral contract.

Accepted Answer

A) True 
 B)False

Question 6

An offer is effective only if it is communicated by the offeror in person.

Accepted Answer

A) True 
 B)False

Question 7

If an offer does not state how long it shall remain open,it remains open for ten days.

Accepted Answer

A) True 
 B)False

Question 8

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications.Because teak wood is difficult to obtain,the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it.Which of the following is correct?

Accepted Answer

A)  Although the price is somewhat unclear, the parties have entered into a contract. 
B)  This is an agreement to agree, and is not binding. 
C)  This agreement fails for indefiniteness. 
D)  The carpenter is bound by the agreement, but not the customer. 
A)  Although the price is somewhat unclear, the parties have entered into a contract. 
B)  This is an agreement to agree, and is not binding. 
C)  This agreement fails for indefiniteness. 
D)  The carpenter is bound by the agreement, but not the customer.

Question 9

If an offeree dies before the offer has been accepted,the offer:

Accepted Answer

A)  may be rejected by the surviving spouse of the offeree. 
B)  may be accepted by the surviving spouse of the offeree. 
C)  is automatically revoked by the death of the offeree. 
D)  may be accepted by the guardian appointed for any minor children of the offeree. 
A)  may be rejected by the surviving spouse of the offeree. 
B)  may be accepted by the surviving spouse of the offeree. 
C)  is automatically revoked by the death of the offeree. 
D)  may be accepted by the guardian appointed for any minor children of the offeree.

Question 10

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29.The customer handed the cashier a $50 bill and said,"I accept.We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229.In this case:

Accepted Answer

A)  the customer validly accepted the store's offer. 
B)  the price tag was a firm offer. 
C)  no contract was formed because the customer's offer was refused. 
D)  the customer is the offeree. 
A)  the customer validly accepted the store's offer. 
B)  the price tag was a firm offer. 
C)  no contract was formed because the customer's offer was refused. 
D)  the customer is the offeree.

Question 11

An offer is terminated upon rejection by the offeree unless:

Accepted Answer

A)  the period of time for which the offeror agreed to keep the offer open has not yet expired. 
B)  the offeror renews the offer. 
C)  the offeree revokes the rejection. 
D)  the offeree makes a counteroffer. 
A)  the period of time for which the offeror agreed to keep the offer open has not yet expired. 
B)  the offeror renews the offer. 
C)  the offeree revokes the rejection. 
D)  the offeree makes a counteroffer.

Question 12

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date.

Accepted Answer

A) True 
 B)False

Question 13

A party to an existing contract can modify the agreement without the other party's actual acceptance or approval.

Accepted Answer

A) True 
 B)False

Exam 12: Formation of Contracts: Offer and Acceptance

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

Contractual intention is determined by objective standards.

A counteroffer is a(n):

Advertisements that call for an act may be deemed to be a unilateral contract.

An offer is effective only if it is communicated by the offeror in person.

If an offer does not state how long it shall remain open,it remains open for ten days.

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications.Because teak wood is difficult to obtain,the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it.Which of the following is correct?

If an offeree dies before the offer has been accepted,the offer:

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29.The customer handed the cashier a $50 bill and said,"I accept.We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229.In this case:

An offer is terminated upon rejection by the offeree unless:

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date.

A party to an existing contract can modify the agreement without the other party's actual acceptance or approval.

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

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