Question 1

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 2

When an offer has been accepted:

Accepted Answer

A)  a subsequent revocation of the offer may serve to nullify the resulting contract. 
B)  a contract is formed, assuming that all of the other elements of a contract are present. 
C)  either party may withdraw from the resulting contract without consent. 
D)  the acceptance is executory. 
A)  a subsequent revocation of the offer may serve to nullify the resulting contract. 
B)  a contract is formed, assuming that all of the other elements of a contract are present. 
C)  either party may withdraw from the resulting contract without consent. 
D)  the acceptance is executory.

Question 3

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

Accepted Answer

A)  no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance. 
B)  a contract is formed, but the contract is voidable at the election of the offeror. 
C)  the acceptance is timely and a contract is formed, even though the offeror actually receives the acceptance well after the specified date has passed. 
D)  the acceptance is timely and a contract is formed, but only if the offeror actually receives the acceptance by the deadline specified for acceptance. 
A)  no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance. 
B)  a contract is formed, but the contract is voidable at the election of the offeror. 
C)  the acceptance is timely and a contract is formed, even though the offeror actually receives the acceptance well after the specified date has passed. 
D)  the acceptance is timely and a contract is formed, but only if the offeror actually receives the acceptance by the deadline specified for acceptance.

Question 7

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 8

Contract terms may not be implied from the parties' conduct.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Contractual intention is determined by objective standards.

Accepted Answer

A) True 
 B)False

Question 13

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 this chapter, decide the probable outcome of the case.

Accepted Answer

Judgment would be for Clark. Per the mai

Exam 12: Formation of Contracts: Offer and Acceptance

An offer is terminated upon rejection by the offeree unless:

When an offer has been accepted:

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

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

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

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

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.

Contract terms may not be implied from the parties' conduct.

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

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

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

Contractual intention is determined by objective standards.

The Nature and Sources of Law

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Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

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Nature and Classes of Contracts: Contracting on the Internet

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