Question: Which of the following are ways in which an offer can be terminated?
Answer Options:
A. Revocation, rejection, counteroffer, illegality, death, incapacity, and lapse of time
B. Rejection, counteroffer, illegality, acceptance, adhesion, lapse of time, and bilateral termination
C. Revocation, adhesion, unilateral termination, and bilateral termination
D. Revocation, acceptance, counteroffer, illegality, and lapse of time
E. Unilateral termination, bilateral termination, illegality, incapacity, and acceptance
Answer: A
20
Question: Which of the following contract terms are considered material?
Answer Options:
A. Subject matter only
B. Price and subject matter only
C. Quantity, quality, and subject matter only
D. Subject matter, quality, and price only
E. Subject matter, price, parties, quality, and quantity
Answer: E
16
Question: Which statement is true regarding illusory promises?
Answer Options:
A. Illusory promises are not consideration.
B. Illusory promises are consideration.
C. Illusory promises qualify as consideration only when past consideration is at issue.
D. Illusory promises qualify as consideration only when promissory estoppel is at issue.
E. Illusory promises are consideration only when a sale of goods is involved.
Answer: A
28
Question: The Uniform Electronic Transactions Act (UETA) appears to create which of the following?
Answer Options:
A. An electronic version of the mailbox rule
B. An exception to option contracts formed by e-mail exchanges
C. A virtual exception to the parol evidence rule
D. An electronic exception to the doctrine of commercial impracticability
E. An electronic exception to the statute of frauds
Answer: A
21
Question: Which of the following is true of consideration?
Answer Options:
A. Consideration is not required in bilateral contracts.
B. Consideration is not required in unilateral contracts.
C. Consideration is required in all contracts.
D. Consideration is never required.
E. Consideration is valid only if it is part of an equal exchange.
Answer: C
24
Question: Which of the following is true regarding an accord and satisfaction?
Answer Options:
A. When amounts agreed upon are paid, the debt is fully discharged.
B. When amounts agreed upon are paid, the debt is fully discharged except for any late charges due on the initial indebtedness.
C. When amounts agreed upon are paid, the debt is fully discharged except for any interest due on the initial indebtedness.
D. When amounts agreed upon are paid, the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness.
E. When amounts agreed upon are paid, the debt is fully discharged except for any late charges or interest due on the initial indebtedness, or attorney fees of the creditor that are due.
Answer: A
29
Question: Carrie promises Tim she will clean his house and in exchange, Tim promises to pay Carrie $50. This is an example of what type of contract?
Answer Options:
A. A unilateral contract
B. A bilateral contract
C. An implied contract
D. A contract created through promissory estoppel
E. An invalid contract
Answer: B
25
Question: Which of the following is true regarding the Uniform Commercial Code (UCC)?
Answer Options:
A. It applies to all contracts.
B. It applies only in situations not addressed by common law.
C. It applies only in situations where clarification of common law is necessary.
D. It does not affect the formation of an agreement.
E. It has changed some of the elements of contract formation for contracts for the sale of goods.
Answer: E
17
Question: Emily left a very high paying job to join John’s law firm based on John’s promise to give her a job if she would come to his firm. John tells Emily that he really did not want to give her the job and she should not have quit her job. If Emily sues John, which doctrine may a court use to prevent John from revoking his offer?
Answer Options:
A. Promissory estoppel
B. Commercial Impracticability
C. Frustration of purpose
D. Substantial performance
E. The statute of frauds
Answer: A
18
Question: Which of the following occurs if the subject matter of an offer becomes illegal?
Answer Options:
A. The offer immediately terminates.
B. The offer remains effective, but only if it was made at least seven days before the subject matter became illegal.
C. The offer remains effective, but only if it was made within 24 hours before the subject matter became illegal.
D. The offer remains effective, but only if it was made at least three days before the subject matter became illegal.
E. There is no effect if the offer was made within a reasonable period of time before the subject matter became illegal.
Answer: A
19
Question: Andrew tells Eric that if he will detail his new hot rod for the car show this weekend, Andrew will pay Eric $500. Eric details the car. What type of contract is this?
Answer Options:
A. A unilateral contract
B. A bilateral contract
C. An implied contract
D. Promissory estoppel
E. An invalid contract
Answer: A
26
Question: How can a unilateral offer be accepted?
Answer Options:
A. By performance only
B. By return promise only
C. By counteroffer only
D. By performance or by return promise only
E. By counteroffer or by return promise only
Answer: A
22
Question: Terrance promises Madison that if she will sell him her tile store to be a larger part of his flooring mega store, he will make Madison a partner after 6 months of on-the-job training. After 6 months, Terrance does not make Madison a partner, and after 8 months, Terrance fires Madison. What theory could Madison sue Terrance for?
Answer Options:
A. Unjust agreement
B. Promissory estoppel
C. Quasi contract
D. Equitable estoppel
E. Promissory enforcement
Answer: B
27
Question: What is an implied-in-fact contract?
Answer Options:
A. A contract created when an offeree receives and accepts in silence the benefits of an offered service with reasonable opportunity for rejection and with an understanding that some form of compensation will be required.
B. A contract that is created when a party’s intent to enter into a contract is unclear, but the other party relies on a belief that promises have been made.
C. A contract created when one party makes an offer that can be accepted only by performance.
D. A contract created when an offeror provides a benefit to an offeree in a unilateral contract.
E. A contract that is created by a mutual exchange of promises.
Answer: A