Question 1

Advertisements for rewards,such as for the return of lost property,information,or the capture of criminals,are generally held to be:

Accepted Answer

A)  invitations but not offers. 
B)  offers for unilateral contracts. 
C)  offers for bilateral contracts. 
D)  firm offers. 
A)  invitations but not offers. 
B)  offers for unilateral contracts. 
C)  offers for bilateral contracts. 
D)  firm offers. B

Question 2

The timing of prior dealings is relevant when determining a reasonable time for acceptance,if the parties have dealt with each other on a regular basis.

Accepted Answer

A) True 
 B)False  True

Question 3

When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return,his behavior will probably be classed as an:

Accepted Answer

A)  agreement. 
B)  offer. 
C)  invitation to negotiate. 
D)  invitation to bid. 
A)  agreement. 
B)  offer. 
C)  invitation to negotiate. 
D)  invitation to bid. C

Question 4

Gavin tells Rod that he will pay him $400 to paint his house.Rod starts to paint,intending to accept.Halfway through his paint job,Gavin tells Rod that he wants to revoke the offer.Under this scenario:

Accepted Answer

A)  Gavin is not allowed to revoke because the contract is unilateral. 
B)  Gavin is allowed to revoke but is liable to Rod for the reasonable value of benefit received. 
C)  Gavin may not revoke because the contract is bilateral. 
D)  Gavin is allowed to revoke if he finds Rod's efforts half-hearted or ineffective. 
A)  Gavin is not allowed to revoke because the contract is unilateral. 
B)  Gavin is allowed to revoke but is liable to Rod for the reasonable value of benefit received. 
C)  Gavin may not revoke because the contract is bilateral. 
D)  Gavin is allowed to revoke if he finds Rod's efforts half-hearted or ineffective.

Question 5

Which of the following must be present for an offer to have a legal effect?

Accepted Answer

A)  Invitation to offer 
B)  Communication of the intention 
C)  Invitation to negotiate 
D)  Definiteness 
A)  Invitation to offer 
B)  Communication of the intention 
C)  Invitation to negotiate 
D)  Definiteness

Question 6

In a bidding process,the owner of the project or a general contractor who wants to farm out a portion of a large job to a subcontractor is generally held to have made an invitation to offer.

Accepted Answer

A) True 
 B)False

Question 7

Bob,a merchant,makes an offer to Linda,another merchant,to buy 1,000 of her widgets in a signed letter containing all necessary terms of the offer.The letter states that Bob will keep the offer open for three weeks from the day the offeree receives it.One week later,Bob writes another letter to Linda attempting to revoke his offer.Linda writes a letter to Bob accepting Bob's original offer before she receives his revocation.Which of the following statements is true of this situation?

Accepted Answer

A)  Linda's acceptance is effective and a contract is created. 
B)  Bob's revocation is effective and no contract is created. 
C)  Promissory estoppel prevents the formation of a contract in this situation. 
D)  The offer cannot be revoked since it is an option offer. 
A)  Linda's acceptance is effective and a contract is created. 
B)  Bob's revocation is effective and no contract is created. 
C)  Promissory estoppel prevents the formation of a contract in this situation. 
D)  The offer cannot be revoked since it is an option offer.

Question 8

When parties fail to expressly agree on the terms of a sales contract,

Accepted Answer

A)  the contract is automatically void. 
B)  the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created. 
C)  the contract will not be enforceable under the Uniform Commercial Code (UC
C) . 
D)  the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute. 
A)  the contract is automatically void. 
B)  the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created. 
C)  the contract will not be enforceable under the Uniform Commercial Code (UC
C) . 
D)  the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

Question 9

Courts have traditionally said they are contract makers,not enforcers.

Accepted Answer

A) True 
 B)False

Question 10

What are the factors that influence the reasonable length of an offer?

Accepted Answer

There are many factors that can influenc

Question 11

Stan read an advertisement in the newspaper that said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000.Stan went that night and correctly picked the winners.However,it turned out that the newspaper had made a mistake.The jackpot was $25,000,not $825,000.Therefore,the track owners refused to pay the latter amount.If this ad is treated like offers of reward,can Stan collect the $825,000?

Accepted Answer

Students' answers may vary.Yes.While the

Question 12

Which of the following statements is true of definiteness of offers?

Accepted Answer

A)  The more specific a proposal, the less likely the court is to call it an offer. 
B)  The courts have traditionally said they are contract makers, not enforcers. 
C)  Both the Code and the Restatement, through doctrines such as good faith and commercial reasonableness, provide ways to fill in the gaps. 
D)  A sales contract fails due to "indefiniteness" if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute. 
A)  The more specific a proposal, the less likely the court is to call it an offer. 
B)  The courts have traditionally said they are contract makers, not enforcers. 
C)  Both the Code and the Restatement, through doctrines such as good faith and commercial reasonableness, provide ways to fill in the gaps. 
D)  A sales contract fails due to "indefiniteness" if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

Question 13

Habib makes an offer to sell 500 television sets to Aisha.Habib is the _____.

Accepted Answer

A)  offeree 
B)  agent 
C)  offeror 
D)  distributor 
A)  offeree 
B)  agent 
C)  offeror 
D)  distributor

Question 14

In an agreement between two parties,if the facts indicate that a term was left out because the parties were unable to reach an agreement about it,it would probably mean that the:

Accepted Answer

A)  CISG must fill in the gaps only if the price terms are left in the agreement. 
B)  parties intended to contract and CISG must fill in any gaps left in the agreement. 
C)  UCC must fill in any gaps left in the agreement. 
D)  intent to contract is absent, and no contract was created. 
A)  CISG must fill in the gaps only if the price terms are left in the agreement. 
B)  parties intended to contract and CISG must fill in any gaps left in the agreement. 
C)  UCC must fill in any gaps left in the agreement. 
D)  intent to contract is absent, and no contract was created.

Question 15

A counteroffer:

Accepted Answer

A)  impliedly rejects an offer. 
B)  does not affect the material terms of the contract. 
C)  is a mirror-image of the offer. 
D)  is an inquiry into the terms of the offer. 
A)  impliedly rejects an offer. 
B)  does not affect the material terms of the contract. 
C)  is a mirror-image of the offer. 
D)  is an inquiry into the terms of the offer.

Question 16

The general rule is that an offeror cannot revoke an offer at any time prior to acceptance if he has promised not to revoke for a stated period of time.

Accepted Answer

A) True 
 B)False

Question 17

An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

Accepted Answer

A) True 
 B)False

Question 18

A subcontractor's bid:

Accepted Answer

A)  is considered an offer. 
B)  is never revocable. 
C)  can usually be withdrawn even if the general contractor has relied on it. 
D)  is considered to be a part of a shrinkwrap agreement. 
A)  is considered an offer. 
B)  is never revocable. 
C)  can usually be withdrawn even if the general contractor has relied on it. 
D)  is considered to be a part of a shrinkwrap agreement.

Question 19

Kamal places an ad in the local newspaper as follows: "$500 reward for the return of my gold ring." Mira finds the ring and returns it to Kamal,but he refuses to pay her the $500.Which of the following statements is true regarding this case?

Accepted Answer

A)  As the ad was merely a solicitation of offers, there was no contract until Kamal accepted Mira's offer to find the ring. 
B)  Mira may not recover the money because she did not contact Kamal before she began her search. 
C)  As Mira did not pay Kamal to keep the offer open, he is free to revoke the offer and not pay her anything. 
D)  Mira accepted the ad as an offer for a unilateral contract by returning the ring and hence, Kamal is bound to pay her the $500. 
A)  As the ad was merely a solicitation of offers, there was no contract until Kamal accepted Mira's offer to find the ring. 
B)  Mira may not recover the money because she did not contact Kamal before she began her search. 
C)  As Mira did not pay Kamal to keep the offer open, he is free to revoke the offer and not pay her anything. 
D)  Mira accepted the ad as an offer for a unilateral contract by returning the ring and hence, Kamal is bound to pay her the $500.

Question 20

Explain the special problems associated with the bidding process in construction works to the general contractor,if the subcontractor is allowed to revoke the offer.

Accepted Answer

The bidding process in construction work

Exam 10: Creating a Contract: Offers

Advertisements for rewards,such as for the return of lost property,information,or the capture of criminals,are generally held to be:

The timing of prior dealings is relevant when determining a reasonable time for acceptance,if the parties have dealt with each other on a regular basis.

When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return,his behavior will probably be classed as an:

Gavin tells Rod that he will pay him $400 to paint his house.Rod starts to paint,intending to accept.Halfway through his paint job,Gavin tells Rod that he wants to revoke the offer.Under this scenario:

Which of the following must be present for an offer to have a legal effect?

In a bidding process,the owner of the project or a general contractor who wants to farm out a portion of a large job to a subcontractor is generally held to have made an invitation to offer.

When parties fail to expressly agree on the terms of a sales contract,

Courts have traditionally said they are contract makers,not enforcers.

What are the factors that influence the reasonable length of an offer?

Which of the following statements is true of definiteness of offers?

Habib makes an offer to sell 500 television sets to Aisha.Habib is the _____.

In an agreement between two parties,if the facts indicate that a term was left out because the parties were unable to reach an agreement about it,it would probably mean that the:

A counteroffer:

The general rule is that an offeror cannot revoke an offer at any time prior to acceptance if he has promised not to revoke for a stated period of time.

An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

A subcontractor's bid:

Kamal places an ad in the local newspaper as follows: "$500 reward for the return of my gold ring." Mira finds the ring and returns it to Kamal,but he refuses to pay her the $500.Which of the following statements is true regarding this case?

Explain the special problems associated with the bidding process in construction works to the general contractor,if the subcontractor is allowed to revoke the offer.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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