QUESTION 1 Bruce and Seller were negotiating Bruce's proposed purc...

QUESTION 1
Bruce and Seller were negotiating Bruce's proposed purchase of a grocery store from Seller. In which situation did the parties manifest the necessary intent to enter into a legally binding contract for the sale of the store?
a. Bruce and Seller signed a complete, definite agreement whereby Bruce agreed to buy the store from Seller and Seller agreed to sell the store to Bruce upon the terms stated in the agreement.
b. Bruce and Seller signed a preliminary agreement whereby they indicated their intention to continue to negotiate terms for the sale of the store.
c. Bruce and Seller signed an agreement whereby Bruce indicated his desire to buy the store from Seller and Seller indicated his desire to sell the store to Bruce upon terms that the parties would later agree upon.
d. a and c

QUESTION 2
An implied contract is created in which of the following situations?
a. Abe voluntarily helped to paint his parents' fence
b. Bob and Pamela entered into a complete, written contract for the sale of Bob's car to Pamela.
c. Rosa and Nan made an oral contract whereby Nan agreed to clean Rosa's home for $70.
d. Kim requested Pete's Pest Control to fumigate her home, and Pete's did as requested. There was no express contract, but Pete's expected payment and Kim was aware of this expectation.

QUESTION 3
Chris agreed to sell stolen goods to Gray, and Gray agreed to buy the goods. Under these facts:
a. This agreement is a void agreement.
b. This agreement is a voidable agreement.
c. This agreement is a valid contract.
d. This agreement is legally enforceable if Chris and Gray subsequently ratify the agreement.

QUESTION 4
Jackie offered to pay glen $500 in consideration for Glen's complete trimming of all trees located on Jackie's property. This offer is an offer for a unilateral contract. Under these facts:
a. Glen can accept the offer by promising to trim the trees.
b. Glen can accept the offer by completely trimming the trees.
c. Glen can accept the offer by promising to trim the trees or by completely trimming the trees.
d. Glen cannot accept the offer; offers for unilateral contracts are illegal.

QUESTION 5
Diane and Rick entered into a signed, written contract whereby Diane promised to sell a motel to Rick for $200,000 and Rick promised to pay Diane $200,000 for the motel. Rick then paid the $200,000 purchase price to Diane, but Diane has not conveyed title to the motel to Rick. Under these facts:
a. This contract is a formal contract.
b. This contract is an executed contract.
c. This contract is a bilateral contract.
d. There is no contract until Diane conveys title to the motel to Rick.

QUESTION 6
On February 12, Harris sent Fresno a written offer to purchase Fresno's land. The offer included the following provision: "Acceptance of this offer must be by registered or certified mail, received by Harris no later than February 18 by 5:00 p.m. CST." On February 18, Fresno sent Harris a letter accepting the offer by private overnight delivery service. Harris received the letter on February 19. Which of the following statements is correct?
a. A contract was formed on February 19.
b. Fresno's letter constituted a counteroffer.
c. Fresno's use of the overnight delivery service was an effective form of acceptance.
d. A contract was formed on February 18 regardless of when Harris actually received Fresno's letter.

QUESTION 7
On June 15, Peters orally offered to sell a used lawn mower to Mason for $125. Peters specified that Mason had until June 20 to accept the offer. On June 16, Peters received an offer to purchase the lawn mower for $150 from Bronson, Mason's neighbor. Peters accepted Bronson's offer. On June 17, Mason saw Bronson using the lawn mower and was told the mower had been sold to Bronson. Mason immediately wrote to Peters to accept the June 15 offer. Which of the following statements is correct?
a. Mason's acceptance would be effective when received by Peters.
b. Mason's acceptance would be effective when mailed.
c. Peter's offer had been revoked and Mason's acceptance was ineffective.
d. Peters was obligated to keep the June 15 offer open until June 20.

QUESTION 8
Kraft Corp. published circulars containing price quotes and a description of products, which it would like to sell. Rice, a prospective customer, demands the right to purchase one of the products at the quoted price. Which of the following statements is correct under general contract law?
a. Kraft must sell the product which Rice demands at the quoted price.
b. Rice has accepted Kraft's firm offer to sell.
c. Kraft has made an offer.
d. Rice has made an offer.

QUESTION 9
Carson Corp., a retail chain, asked Alto Construction to fix a broken window at one of Carson's stores. Alto offered to make the repairs within three days at a price to be agreed on after the work was completed. A contract based on Alto's offer would fail because of indefiniteness as to the
a. Price involved.
b. Nature of the subject matter.
c. Parties to the contract.
d. Time for performance.

QUESTION 10
Nix sent Castor a letter offering to employ Castor as controller of Nix's automobile dealership. Castor received the letter on February 19. The letter provided that Castor would have until February 23 to consider the offer and, in the meantime, Nix would not withdraw it. On February 20, Nix, after reconsidering the offer to Castor, decided to offer the job to Vick, who accepted immediately. That same day, Nix called Castor and revoked the offer. Castor told Nix that an acceptance of Nix's offer was mailed on February 19. Under the circumstances
a. Nix's offer was irrevocable until February 23.
b. No contract was formed between Nix and Castor because Nix revoked the offer before Nix received Castor's acceptance.
c. Castor's acceptance was effective when mailed.
d. Any revocation of the offer would have to be in writing because Nix's offer was in writing.

QUESTION 11
Opal offered, in writing, to sell Larkin a parcel of land for $300,000. If Opal dies, the offer will
a. Terminate prior to Larkin's acceptance only if Larkin received notice of Opal's death.
b. Remain open for a reasonable period of time after Opal's death.
c. Automatically terminate despite Larkin's prior acceptance.
d. Automatically terminate prior to Larkin's acceptance.

QUESTION 12
On September 10, Harris, Inc., a new car dealer, placed a newspaper advertisement stating that Harris would sell 10 cars at its showroom for a special discount only on September 12, 13 and 14. On September 12, King called Harris and expressed an interest in buying one of the advertised cars. King was told that five of the cars had been sold and to come to the showroom as soon as possible. On September 13, Harris made a televised announcement that the sale would end at 10:00 PM that night. King went to Harris' showroom on September 14 and demanded the right to buy a car at the special discount. Harris had sold the 10 cars and refused King's demand. King sued Harris for breach of contract. Harris best defense to King's suit would be that Harris'
a. Offer was unenforceable.
b. Advertisement was not an offer.
c. Television announcement revoked the offer.
d. Offer had not been accepted.

QUESTION 13
In determining whether the consideration requirement has been satisfied to form a contract, the courts will be required to decide whether the consideration
a. Was bargained for.
b. Was fair and adequate.
c. Has sufficient economic value
d. Conforms to the subjective intent of the parties.

QUESTION 14
For there to be consideration for a contract, there must be
a. A bargained-for detriment to the promisor(ee) or a benefit to the promisee(or).
b. A manifestation of mutual assent.
c. Genuineness of assent.
d. Substantially equal economic benefits to both parties.

QUESTION 15
In which of the following situations does the first promise serve as valid consideration for the second promise?
a. A police officer's promise to catch a thief for a victim's promise to pay a reward.
b. A builder's promise to complete a contract for a purchaser's promise to extend the time for completion.
c. A debtor's promise to pay $500 for a creditor's promise to forgive the balance of a $600 liquidated (undisputed) debt.
d. A debtor's promise to pay $500 for a creditor's promise to forgive the balance of a $600 disputed debt.

QUESTION 16
Kay, an art collector, promised Hammer, an art student, that if Hammer could obtain certain rare artifacts within two weeks, Kay would pay for Hammer's postgraduate education. At considerable effort and expense, Hammer obtained the specified artifacts within the two-week period. When Hammer requested payment, Kay refused. Kay claimed that there was no consideration for the promise. Hammer would prevail against Kay based on
a. Unilateral contract.
b. Unjust enrichment
c. Public policy.
d. Quasi contract.

QUESTION 17
Dye sent Hill a written offer to sell a tract of land located in Newtown for $60,000. The parties were engaged in a separate dispute. The offer stated that it would be irrevocable for 60 days if Hill would promise to refrain from suing Dye during this time. Hill promptly delivered a promise not to sue during the term of the offer and to forego suit if Hill accepted the offer. Dye subsequently decided that the possible suit by Hill was groundless and therefore phoned Hill and revoked the offer 15 days after making it. Hill groundless and therefore phoned Hill and revoked the offer 15 days after making it. Hill mailed an acceptance on the 20th day. Dye did not reply. Under the circumstances,
a. Dye's offer was supported by consideration and was not revocable when accepted.
b. Dye's written offer would be irrevocable even without consideration
c. Dye's silence was an acceptance of Hill's promise.
d. Dye's revocation, not being in writing, was invalid