Q&A Hero

Q: The outer limit on a firm offer is: A. 1 month. B. 3 months. C. 6 months. D. 1 year.

Q: How can an offeree impliedly reject an offer? A. By indicating that he will not accept it B. By asking for more time to think C. By making a counteroffer D. By writing his nonacceptance

Q: Why does a rejection by the offeree terminate his power to accept the offer? A. It indicates his inability to perform the contract. B. It indicates that the offeree is uninterested. C. It allows the offeror to approach a different offeree. D. It indicates a lack of intent making any future contract illegal.

Q: A firm offer differs from an option in that, a firm offer: A. is a separate contract by itself. B. is irrevocable for a certain period of time. C. does not require a consideration in exchange for the offer. D. is not covered under the UCC.

Q: Which of the following conditions characterizes a firm offer regarding the sale of goods? A. It must be verbally communicated. B. It can be revoked by the offeror prior to acceptance. C. It must be made in the presence of a government official. D. It must be made by an offeror who is a merchant.

Q: In which of the following circumstances are offerors free to revoke their offers? A. In case of common law rule on revocation. B. In case of unilateral contracts. C. In case of the availability of an option. D. In case of a promissory estoppel.

Q: How does the presence of facts that constitute promissory estoppel make a difference in the law of offers and revocations? A. It makes an option enforceable, even without consideration. B. It does away with the requirement that rejections and revocations be communicated. C. It makes an offer automatically revocable at any time. D. It does away with the requirement that offers be definite.

Q: Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation? A. Yes, because Sara is the master of the offer here. B. Yes, because Sara can revoke the offer any time she feels like. C. No, because this is a valid contract that cannot be revoked. D. No, because this is now a bilateral contract.

Q: A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration. A. offer B. option C. bid D. advertisement

Q: Which of the following helps to prevent offerors from revoking their offers prior to acceptance when the offeree relies on it being kept open? A. Option B. Promissory estoppel C. Unilateral contracts D. Firm offer

Q: Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise. A. An offer for the sale of land. B. An offer to purchase stock on a stock exchange. C. An offer that says that it will stay open for one week. D. An offer with a valid five-day option attached to it.

Q: Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian's car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate? A. After 5 days, as per the "5 day rule." B. After 10 days, as per the "10 day rule." C. After a "reasonable" period of time. D. When either Ian or Raymond terminates it.

Q: Which of the following is true of a revocation? A. The power of revocation of an offer lies with the offeree. B. Death or insanity cannot be reasons for revocation. C. Promissory estoppels are used to prevent revocations. D. Offers that fail to state a specified time period are considered invalid.

Q: An online agreement that presents contract terms and conditions but does not require readers to click to indicate agreement is called a: A. clickwrap agreement. B. shrinkwrap agreement. C. browsewrap agreement. D. minimum contracts agreement.

Q: Ms. White lost her puppy. She advertises a reward of $50 for the return of her puppy. What is the contractual nature of Ms. White's advertisement? A. An offer for a unilateral contract B. An invitation for an offer C. An invitation for a gift D. An acceptance on a bilateral promise

Q: Offers that fail to provide a specific time for acceptance are: A. considered to be illegal. B. are valid for a reasonable period for time. C. are valid but unenforceable. D. can be used to penalize the offeror.

Q: When can the offeror effectively revoke his/her offer? A. Only after an effective acceptance. B. Only before an effective acceptance. C. Only before payment for goods or services has been made. D. Only before the parties have completed their obligations under the contract.

Q: Ads that limit the power of acceptance to one offeree or a small number of offerees, are highly specific about the nature and number of items offered for sale and what is requested in return is considered to be _____. A. offers B. invitations to negotiate C. invitations to offer D. obligations

Q: When an auction is advertised as being _________, the seller is treated as having made an offer to sell the goods to the highest bidder. A. without intent B. without reserve C. without price D. without offer

Q: Which of the following characterizes an auction "without reserve"? A. Bidders must necessarily be merchants B. Sellers must necessarily be merchants C. Goods cannot be withdrawn after a call for bids D. Buyers are treated as having made an offer to sell

Q: Which of the following is true regarding bids? A. They are considered to be unilateral contracts. B. Promissory estoppels can be used to prevent withdrawal of bids. C. Bids for governmental contracts are covered under contract principles. D. Those submitting a bid are called offerees.

Q: Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? A. Austen should not rely on Bronte's offer to do the electrical work. B. Austen has accepted Bronte's offer, thereby forming a contract. C. Austen is not bound by Bronte's bid until he informs her of his intent to accept. D. Bronte has accepted Austen's offer by submitting the lowest bid.

Q: For a proposal to be considered a contractual offer then the offeror must have what type of intent? A. Present intent to contract B. Future intent to contract C. No intent to contract D. Past intent to contract

Q: Advertisements for the sale of goods at specific prices are considered to be: A. bids. B. unenforceable contracts. C. invitations to offer. D. unilateral contracts.

Q: Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract? A. Yes, because there is valid consideration. B. Yes, because a third party has communicated the terms of Sue's offer to John and that John had accepted the same. C. No, because the offeror had not communicated the terms of the offer to the offeree. D. No, because the contract is still not signed by both the parties.

Q: Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true? A. Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. B. There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. C. Kyle and Tara have a contract for the purchase of Kyle's car. D. Maggie's letter is a valid acceptance of Kyle's offer.

Q: Which of the following characterizes definiteness standards under the common law? A. Courts are contract enforcers. B. Contracts need to contain all the terms. C. Courts should be able to provide "gap fillers" in contracts. D. Courts can take a "hands-on" approach to contracts.

Q: Which of the following characterizes the Code's standards of definiteness? A. It sees courts as contract enforcers. B. It requires a high degree of definiteness in contracts. C. It can create contractual liabilities. D. It cannot fill in gaps in contracts.

Q: Which of the following is true of a sales contract under the UCC? A. The courts cannot fill any "gaps" in the contracts. B. The court needs to find if the parties intended a contract. C. An intent to contract exists even if the parties were unable to reach an agreement. D. All terms of contract need to be clear for the court to decide the case.

Q: The term for the person who makes an offer as part of a contract formation is called? A. Offeree B. Offeror C. Leasor D. Incorporator

Q: Ashley says to Ford, "I'd like to buy your house," and Ford responds, "You've got a deal." This exchange lacks _____. A. partners B. communication C. object D. specificity

Q: Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of: A. consideration. B. definiteness. C. communication to offeree. D. present intent to contract.

Q: Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price. Such pens typically sell for $1 each. Carl orally accepts. Immediately thereafter, Abby tries to back out of the deal. At this point in time, which of the following is most likely to be true? A. There is no offer and no contract because the offer is indefinite. B. There is no offer and no contract because the offer must be in writing. C. There is a contract, if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. D. There is a contract, because the offer contained all material terms.

Q: According to the classical contract law, courts are: A. contract makers. B. contract breakers. C. contract enforcers. D. contract negotiators.

Q: The offeror's death automatically terminates an offer, but the offeree's death does not.

Q: Ms. Pink offers to landscape Mr. Green's yard for $100. Mr. Green is planning to say yes but before he has a chance to communicate with Ms. Pink he receives a text message from Ms. Pink indicating she has rescinded her offer due to her being too busy. Ms. Pink has effectively revoked her offer.

Q: Which of the following is the first step in the contract formation process? A. Signing the agreement B. An offer in definite terms C. Selection of partners D. Drafting the agreement

Q: To distinguish an offer, courts first look at: A. the communication to the offeree. B. the definiteness of terms. C. the present intent to contract. D. a description of the parties involved.

Q: What does "present intent to contract" mean? A. Intent to enter the contract upon acceptance B. Intent to negotiate in case of rejection of offer C. Intent to set contractual conditions D. Intent to engage more than one partner in the deal

Q: Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite.

Q: A revocation is effective at the time it is dispatched by the offeror.

Q: A firm's offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Q: Bob offers to sell his bike to Sue for $100, and promises to keep his offer open for five days. Sue thanks him and leaves. At this point, Bob still has the power to revoke his offer.

Q: The offeror is said to be the "master of the offer." This means that offerors have the power to determine the terms and conditions under which they are bound to a contract.

Q: An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract.

Q: Sellers at a public auction are treated as makers of an invitation to offer.

Q: Mr. Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel. Mr. Blue submits a bid for his work associated with the project. Mr. Green placed an offer which Mr. Blue accepted with his bid.

Q: In order to meet the requirements to form a contract the parties must have a future intent to agree and form a contract.

Q: Mr. Blue and Mr. Green are in negotiations for a regular delivery of newspapers to Mr. Blue's business. Mr. Blue did not formally announce his acceptance to the offer. But when Mr. Green sent a shipment of newspapers as had been agree, Mr. Blue accepted the shipment and paid for them. According to the UCC Mr. Blue and Mr. Green have an enforceable contract.

Q: Generally speaking, advertisements are considered to be offers.

Q: All terms of contracts, even "fine-print" terms of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.

Q: An offer is the first step in the contract formation process.

Q: Generally speaking, the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

Q: If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

Q: The UCC often creates contractual liability in situations where no contract would have resulted at common law.

Q: The three requirements for a valid offer are: present intent to contract, definiteness, and communication to the offeree.

Q: Strictly speaking, a contract has nothing to do with the personal intent of the parties.

Q: Courts look at parties' outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

Q: John, a house painter, enters into a contract with Robert under which he promises to paint Robert's house for which Robert promises to pay $1,000 at the completion of work. John mistakenly paints Mary's house next door. Mary returns from vacation, surprised to see her house beautifully painted. John asks Mary to pay for the work. Mary refuses. Under what theory may John attempt to recover from Mary? Will he be successful? Explain.

Q: Why was the emergence of large corporations so important in shaping the 20th century contract law?

Q: Why are 20th century contract law rules so often fuzzy and discretionary rather than precise and rigid? The basic reason is the perceived need for government intervention and, more importantly, intervention in a complex social environment in which one situation differs from another. How can anyone frame precise, technical rules to deal equitably with situations that cannot readily be foreseen and that almost certainly should be dealt with differently? Thus, we get fuzzy rules that enable courts to decide according to the equities of the individual case.

Q: What is the main difference between a void contract and a voidable contract? Give examples of each.

Q: Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

Q: Which of the following is true regarding promissory estoppel? A. It requires reasonable reliance on the promisor's promise. B. It requires a written promise. C. It requires consideration. D. It applies only when one party is a merchant.

Q: A fundamental difference between a promissory estoppel and traditional contract principles is that a promissory estoppel protects: A. reliance. B. bargains. C. agreements. D. consideration.

Q: What is the term for being equitably prevented from raising a legal defense? A. Quid pro quo B. Estoppel C. Breach of Contract D. International Subsidy Agent

Q: James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true? A. The dentist can recover under quasi-contract. B. The dentist cannot recover under an implied contract theory. C. The dentist can recover under the doctrine of promissory estoppel. D. The dentist cannot recover because there was no express contract here.

Q: Amy bought Mississippi State Lottery tickets. Several days later, she learned that someone had won the lottery but that the winner had not yet come forward. She searched for her ticket to see if she had selected the winning numbers, but was unable to find it. Although the lottery ticket was gone, Amy still possessed the play slip she had used when she purchased the ticket. She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery. Reasoning that the play slip would satisfy the Lottery office, Amy laid her claim. The Lottery Office took the position that Amy needed to produce the actual winning ticket as per the rules, and hence denied her claim. Amy sued the Lottery Office for breach of contract and unjust enrichment. Will she succeed? A. Yes, because the play slip should be proof enough to substantiate her claim on the prize money. B. Yes, because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. C. No, because Amy had made a mistake in losing the original ticket. D. No, because the rules of the contract prescribed the ticket must be shown to claim the money. Amy had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Q: Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she has resold some products that she has received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of the fraud. What is the remedy available to her? A. Promissory estoppel B. Duty of good faith C. Executory contract D. Quasi-contract

Q: A. Mark may recover his moving expenses under the doctrine of promissory estoppel. B. The Firm breached its express contract with Mark by terminating him. C. The Employment Policy Manual is part of the implied contract between Mark and The Firm. D. The Firm may recover Mark's salary under the doctrine of quasi-contract. There is an implied contract between the firm and Mark. Since Mark violated the contract, the company can terminate his services.

Q: The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of: A. good faith. B. unconscionable contract. C. quasi-contract. D. implied contract.

Q: Why does Article 2 hold merchants to a higher standard than nonmerchants? A. Because buyers tend to place more reliance on merchants. B. Because merchants are not required to observe reasonable commercial standards of fair dealing. C. Because the Code gives more weightage to technical requirements such as consideration. D. Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

Q: Why do the Restatements of Contracts not have the force of law? A. It was the product of a private organization. B. It had conflicting perspectives. C. It was deemed significantly inferior to the common law. D. It was deemed significantly inferior to the UCC.

Q: What bodies of law govern contracts in the United State? A. Article 2 of the UCC B. Common law related to contracts C. The United Nations Declaration on Human Rights D. Both A & B

Q: How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace? A. By applying stringent technicalities to contracts. B. By recognizing void contracts. C. By discriminating between merchants and nonmerchants. D. By imposing the doctrine of good faith.

Q: What is the test frequently used to determine "hybrid" contracts? A. Determining the value of the contract. B. Determining the party to benefit. C. Determine which element predominates. D. Determining the validity of the contract.

Q: Which of the following is NOT covered by Article 2 of the UCC? A. Vehicles B. Appliances C. Stocks D. Books

Q: Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later, Linda became dissatisfied with this transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case? A. The contract rules of the UCC apply, because the contract included the sale of goods. B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods. C. The contract rules of the common law apply, because the contract included services, which are governed by the common law. D. The contract rules of the common law apply, because all contracts are governed by the common law.

Q: The UCC differs from the common law of contracts in that the UCC: A. is less concerned with technical rules. B. deals with the sale of intangibles. C. deals with service contracts. D. is less concerned with the "good faith" doctrine.

Q: The CISG: A. provides uniformity for transactions among contracting parties in different states in the United States. B. applies only to consumers, not commercial parties. C. applies only to services, not sales of goods. D. does not have provisions to cover every contract problem that might occur.