Question 1

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

Question 2

When an offer has been accepted:

Accepted Answer

A)  a subsequent revocation of the offer may serve to nullify the resulting contract.
B)  a contract is formed, assuming that all of the other elements of a contract are present.
C)  either party may withdraw from the resulting contract without consent.
D)  the acceptance is executory.

Question 3

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

Accepted Answer

A) True 
 B)False

Question 4

Contract terms may not be implied from conduct.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The bid of each contractor for a job is considered an offer.

Accepted Answer

A) True 
 B)False

Question 7

An output contract is too vague to be a legally-enforceable agreement.

Accepted Answer

A) True 
 B)False

Question 8

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

Accepted Answer

A)  no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance.
B)  a contract is formed, but the contract is voidable at the election of the offeror.
C)  the acceptance is timely and a contract is formed, even though the offeror actually receives the acceptance well after the specified date has passed.
D)  the acceptance is timely and a contract is formed, but only if the offeror actually receives the acceptance by the deadline specified for acceptance.

Question 9

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 10

An offer is terminated upon rejection by the offeree unless:

Accepted Answer

A)  the period of time for which the offeror agreed to keep the offer open has not yet expired.
B)  the offeror renews the offer.
C)  the offeree revokes the rejection.
D)  the offeree makes a counteroffer. B

Question 11

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 do...

Question 12

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

Question 13

A requirements contract is too vague to be a legally-enforceable agreement.

Accepted Answer

A) True 
 B)False

Question 14

An acceptance must be absolute and unconditional.

Accepted Answer

A) True 
 B)False

Question 15

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Accepted Answer

A) True 
 B)False

Question 16

If not an offer, the first statement made by one of two persons is most properly termed a(n) :

Accepted Answer

A)  option.
B)  acceptance.
C)  invitation to negotiate.
D)  contract.

Question 17

In general, an acceptance occurs when:

Accepted Answer

A)  a particular form of words is stated to the offeror.
B)  a particular mode of expression is made to the offeror.
C)  the offeree reserves the right to reject the offer.
D)  a clear expression of the offeree's agreement to be bound by the terms of the offer occurs. D

Question 18

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 19

If no termination date is specified for an offer, the offer will remain open:

Accepted Answer

A)  for one year.
B)  for six months.
C)  for a reasonable period of time.
D)  until someone accepts the offer.

Question 20

In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Accepted Answer

A)  without reserve
B)  with reserve
C)  without preserve
D)  with preserve

Exam 13: Formation of Contracts: Offer and Acceptance

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

Correct Answer
verified
A

When an offer has been accepted:

Correct Answer
verified

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

Correct Answer
verified

Contract terms may not be implied from conduct.

Correct Answer
verified

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

Correct Answer
verified

The bid of each contractor for a job is considered an offer.

Correct Answer
verified

An output contract is too vague to be a legally-enforceable agreement.

Correct Answer
verified

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

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

Correct Answer
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An offer is terminated upon rejection by the offeree unless:

Correct Answer
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B

Correct Answer
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When an offer is made and the offeror do...
View Answer

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

Correct Answer
verified

A requirements contract is too vague to be a legally-enforceable agreement.

Correct Answer
verified

An acceptance must be absolute and unconditional.

Correct Answer
verified

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Correct Answer
verified

If not an offer, the first statement made by one of two persons is most properly termed a(n) :

Correct Answer
verified

In general, an acceptance occurs when:

Correct Answer
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D

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

Correct Answer
verified

If no termination date is specified for an offer, the offer will remain open:

Correct Answer
verified

In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Correct Answer
verified

Exam 13: Formation of Contracts: Offer and Acceptance

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

Correct AnswerverifiedA

When an offer has been accepted:

Correct AnswerverifiedShow Answer

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

Correct AnswerverifiedShow Answer

Contract terms may not be implied from conduct.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The bid of each contractor for a job is considered an offer.

Correct AnswerverifiedShow Answer

An output contract is too vague to be a legally-enforceable agreement.

Correct AnswerverifiedShow Answer

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An offer is terminated upon rejection by the offeree unless:

Correct AnswerverifiedB

Correct AnswerverifiedWhen an offer is made and the offeror do...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A requirements contract is too vague to be a legally-enforceable agreement.

Correct AnswerverifiedShow Answer

An acceptance must be absolute and unconditional.

Correct AnswerverifiedShow Answer

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Correct AnswerverifiedShow Answer

If not an offer, the first statement made by one of two persons is most properly termed a(n) :

Correct AnswerverifiedShow Answer

In general, an acceptance occurs when:

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

If no termination date is specified for an offer, the offer will remain open:

Correct AnswerverifiedShow Answer

In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Correct AnswerverifiedShow Answer

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A

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B

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When an offer is made and the offeror do...
View Answer

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D

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