Question 1

A "best efforts" clause is always deemed too indefinite to be enforceable.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Bart owned 100 shares of a stock that was actively traded on a national stock exchange.Bart wanted to sell the shares but felt that his profit would be seriously diminished by selling through a broker and paying the customary brokerage commission.Bart offered the 100 shares to any of a group of six people in a conversation at a party.The offered price was $72.50 per share, the price at which the shares had closed that day.No one really responded to the offer at that time.Ten days later when the shares were trading at $76.25, Marie, one of the offerees at the party, appeared at Bart's office saying that she accepted the offer.Bart claimed the offer no longer was available.Evaluate the legal outcome of this dispute.

Accepted Answer

​When an offer is made and the offeror d

Question 5

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 6

Arthur made a bid at an auction by calling out the amount of $250.The auctioneer acknowledged Arthur's bid.There were no higher bids, and before the fall of the auctioneer's hammer, Arthur announced that he was withdrawing the bid.The auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had already been acknowledged.What is the result?

Accepted Answer

A) ​Arthur's bid is an ordinary offer that can be revoked. 
B) Arthur's bid is firm and cannot be withdrawn. 
C) ​Since the auctioneer had in fact acknowledged Arthur's bid, the bid became an option exercisable at the election of the seller. 
D) ​Since the auctioneer had in fact acknowledged Arthur's bid, a contract had been formed by way of offer and acceptance; accordingly, Arthur's subsequent attempt to withdraw his bid was ineffective. 
A) ​Arthur's bid is an ordinary offer that can be revoked. 
B) Arthur's bid is firm and cannot be withdrawn. 
C) ​Since the auctioneer had in fact acknowledged Arthur's bid, the bid became an option exercisable at the election of the seller. 
D) ​Since the auctioneer had in fact acknowledged Arthur's bid, a contract had been formed by way of offer and acceptance; accordingly, Arthur's subsequent attempt to withdraw his bid was ineffective.

Question 7

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 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

A revocation of an offer is ordinarily effective after the offer has been accepted.

Accepted Answer

A) True 
 B)False

Question 13

When it is claimed that a contract is too indefinite to be enforced, a court will do its best to find the intent of the parties and thereby reach the conclusion that the contract is not too indefinite.

Accepted Answer

A) True 
 B)False

Question 14

A(n) __________ contract is a contract to buy all requirements of the buyer from the seller.

Accepted Answer

A) ​output 
B) essentials 
C) ​necessaries 
D) ​requirements 
A) ​output 
B) essentials 
C) ​necessaries 
D) ​requirements

Question 15

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 16

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 17

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

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land.

Accepted Answer

A) True 
 B)False

Exam 12: Formation of Contracts: Offer and Acceptance

A "best efforts" clause is always deemed too indefinite to be enforceable.

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

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

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

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

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

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

At an auction sale, each bid is:

A revocation of an offer is ordinarily effective after the offer has been accepted.

When it is claimed that a contract is too indefinite to be enforced, a court will do its best to find the intent of the parties and thereby reach the conclusion that the contract is not too indefinite.

A(n) __________ contract is a contract to buy all requirements of the buyer from the seller.

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

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

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

A counteroffer is a(n):

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

If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land.

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 Environment 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

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