Business Law Contracts Test

A unilateral contract has how manny promises?

1

Statement 1: Every contract must have a offer and acceptance. Statement 2: Every contract must have a offer, but not necessarily acceptance.

Statement 1 is true and Statement 2 is false

Which of the following is a affirmative defense in contracts?

infancy

John: "If you lay gravel down in my front yard, I will pay you $50." Jane lays down mulch in John's front yard. Which of the following is true?

jane did not accept john's offer

Ricky: "I will buy you a car if you wash my roof." Bri: "I will wash your roof if you fix my sink." Ricky: "I will fix your sink if you pay me $50." Which of the following is true?

rickey is the offeror

a unilateral contract has one promise

true

every contract must have a offer

true

a bilateral contract has how many promises?

2

A contract CAN / CANNOT be formed on the basis of promises.

CAN

A contract CAN / CANNOT be formed solely on the basis of verbal promises.

CANNOT

What is a accurate statement of law regarding revocation?

The general rule is revocation must be communicated to be effective

1. You make a valid offer which includes consideration. 2. The offeree accepts your valid offer. Which of the following is most accurate?

a contract exists

1. I promise a student 10 extra credit points if the student brings me a cup of coffee. 2. I go home and regret making such a silly offer. I make a mental note to revoke the offer, but do nothing more. 2. Next class, as requested, the student brings a cup of coffee to me. Which statement is most accurate?

a legally enforceable contract exists

Ron: "Bobby, I promise to pay you $50 if you mow my lawn." Bobby goes and mows Ron's lawn. Which of the following is true?

a valid, enforceable contract exists

"I promise to go grocery shopping for you if you promise to give me your watch." What kind of contract would this be, if there is acceptance?

bilateral

Ricky: "I will buy you a car if you wash my roof." Bri: "I will wash your roof if you fix my sink." Ricky: "I will fix your sink if you pay me $50." Which of the following is true?

bri has the power of acceptance

A bilateral contract has one promise.

false

A rejection can never be written on a piece of paper.

false

Generally speaking, if the offeror promises to keep the offer open, the offer will remain open.

false

Revocation is the only way the power of acceptance can be terminated.

false

Under no circumstances do inward thoughts matter when an offer is made.

false

all contracts must be in writing

false

all contracts must have offer, acceptance, and consideration

false

every contract must have consideration

false

Every legally binding contract must have consideration.

false (there are 2 exceptions)

Promissory estoppel must have:

foreseeable reliance

Randy: "I promise to pay you $50 if you wash my car by tomorrow." Lupe: "I will wash your car by tomorrow if you pay me $75." Which of the following is true?

lupe is the offeror

Randy: "I promise to pay you $50 if you wash my car by tomorrow." Lupe: "I will wash your car by tomorrow if you pay me $75." Which of the following is true?

lupe made a counteroffer

You walk into class and hand me a cup of coffee. I say, "Thank you. I will give you 5 extra credits points for this." Which of the following statements is true?

no consideration exists

You walk into class and hand me a cup of coffee. I say, "Thank you. I will give you 5 extra credits points for this." Which of the following statements is true?

no offer existed

1. I walk into class and you hand me a cup of coffee. 2. I tell you that you get 10 extra credit points. What is the most accurate statement?

no valid contract exists

You walk into class and hand me a cup of coffee. I say, "Thank you. I will give you 5 extra credits points for this." Which of the following statements is true?

no valid contract exists

1. Sara writes on the whiteboard, "Phil I will buy your car for $500." 2. Phil sees the whiteboard. 3. Phil leaves the room, drives home, and then pronounces, "I accept Sara's offer!" Which of the following is true?

phil did not accept sarahs offer

1. Marky makes a valid offer that contains consideration. 2. Phil properly rejects Marky's offer and properly communicates this. Which of the following is true?

phil no longer has the power of acceptance

The concept of consideration is attached to what aspect of contract formation?

promises

Randy: "I promise to pay you $50 if you wash my car by tomorrow." Lupe: "I will wash your car by tomorrow if you pay me $75." Which of the following is true?

randy now holds the power of acceptance

Ron: "Bobby, I promise to pay you $50 if you mow my lawn." Bobby goes and mows Ron's lawn. Which of the following is true?

ron cannot revoke the offer

Sadie: "If you promise to mow my lawn I promise to do your homework." Sally: "Ok, I promise to do half of your homework." Which of the following is true?

sally did not accept sadie's offer

John: "I will pay you $50 if you mow my lawn." Jane puts mulch in John's yard and does not mow the yard. Jane demands that John pay her $50. Which of the following is most likely true?

the is likely a rejection by nonconforming acceptance

1. I promise a student 10 extra credit points if the student brings me a cup of coffee. 2. Next class, as requested, the student brings a cup of coffee to me. Which statement is most accurate?

the offer was accepted

1. You write a valid offer on the whiteboard. 2. The offeree sees the offer on the whiteboard. Which of the following is true?

the offeree now has the power of acceptance

1. I promise a student 10 extra credit points if the student brings me a cup of coffee. 2. The student rejects the offer immediately to me during class. 2. Next class, as requested, the student brings a cup of coffee to me.

there is not a legally enforceable contract

Sadie: "If you promise to mow my lawn I promise to do your homework." Sally: "Ok, I promise to do your homework." Sadie: "I no longer want you to do my homework, the offer is no longer on the table." Which of the following is true?

there was a offer, acceptance, and then a failed attempt at revocation

John: "If you lay gravel down in my front yard, I will pay you $50." Jane lays down mulch in John's front yard. Which of the following is true?

this is a offer for a unilateral contract

1. You make a valid offer to Ralph, which includes consideration. 2. Ralph leaves the building and drives home. 3. You then state out loud, "I no longer am making that offer to Ralph." Which of the following is true?

this was not proper revocation

What is the purpose of a option contract?

to ensure a offer is kept open for a certain amount of time

Toby: "I promise to pay you $200 if you mow my lawn by tomorrow at 3:00 PM." Mack: "Ok, I promise to do that." Mack mows the lawn the next day at 4:00 PM. Which of the following is true?

toby does not owe Mack $200 because Mack did not validly accept the offer

A counteroffer could potentially be written on a piece of paper.

true

A counteroffer is technically a type of rejection.

true

A counteroffer terminates the power of acceptance for the original offer.

true

every contract must have acceptance

true

Revocation is effective :

upon receipt

1. You receive a valid offer. 2. You successfully reject the valid offer. Which of the following is true?

you can no longer accept the offer

1. You make a valid offer which includes consideration. The offer is properly communicated. 2. The offeree accepts the offer. This acceptance is properly communicated. 3. You tell the offeree that you are revoking the offer. Which of the following is true?

you can no longer revoke the offer