Question 1

Paris offers to sell her landscaping business to Steve for $100,000.00. Before Steve responds, Paris tells him that she has changed her mind. Which statement is true?

Accepted Answer

A)   Once Paris makes an offer, it must stay open a reasonable time.
B)   Once Paris makes the offer, it can only be rejected by Steve for the offer to terminate.
C)   Paris is the master of her offer and she can cancel it any time up until Steve accepts it.
D)   Paris cannot revoke the offer if Steve wants to accept it.E) A) and B)
F) A) and D)

Question 2

Consideration requires the parties to exchange items of equal value.

Accepted Answer

A) True 
 B)False

Question 3

Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract?

Accepted Answer

A)   Yes because it was a mutual mistake.
B)   No because it is a unilateral mistake.
C)   Yes because it was a unilateral mistake.
D)   No because it was a bilateral mistake.E) None of the above
F) All of the above

Question 4

Consideration, an element of contractformation, requires that both parties

Accepted Answer

A)   Think about the terms of the contract.
B)   Exchange something of legal value.
C)   Enter into the agreement in good-faith.
D)   Do not act against public policy.E) A) and B)
F) All of the above

Question 5

According to the mailbox rule, an acceptance if effective

Accepted Answer

A)   When received by the offeror
B)   when dispatched by the offeree in a commercially reasonable manner.
C)   One day after dispatched by offeree
D)   Once received by the offereeE) A) and C)
F) A) and B)

Question 6

Ed writes Gwen a letter and offers her a job as a financial analyst for his construction company at a salary of $75,000.00 a year. Two days later he sends her another letter telling her that he has changed his mind. Gwen receives both of the letters and after reading the letter with the job offer, does not open the second letter, and spends a couple of days thinking about the offer and whether she should accept it. Four days later, Gwen decides to accept the offer but still has not read the second letter revoking the offer. Which statement is correct?

Accepted Answer

A)   As long as Gwen has not opened the revocation letter, she has no actual notice of the revocation and may accept the original offer.
B)   A revocation is only effective once the offeree has actual notice of it.
C)   A revocation is effective once it is received and no actual notice is needed.
D)   The revocation is not effective when mailed. It must be in person.E) All of the above
F) B) and D)

Question 7

Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct?

Accepted Answer

A)   Taiga rejected the offer, and a rejection terminates an offer.
B)   As long as Kiiko has not entered into an agreement with another person, Taiga can reaccept the offer.
C)   If Kiiko does not specifically state to Taiga that she rejects his acceptance Taiga may accept it even though he first rejected it.
D)   Taiga has unlimited times to reject and to accept an offer until Kiiko has given Taiga a formal revocation notice.E) A) and B)
F) A) and D)

Question 8

When determining if an offer exists, the court will look to the subjective intent of the offeror.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are required for promissory estoppel except

Accepted Answer

A)   The offeror makes a reasonable offer.
B)   The offeree actually relied on the promise and suffered an injury.
C)   The offeree was a minor
D)   The reliance was reasonably foreseeable.E) B) and D)
F) All of the above

Exam 7: Mutual Assent: Agreement and Consideration

All of the following are required for promissory estoppel except

Correct Answer
verified

Paris offers to sell her landscaping business to Steve for $100,000.00. Before Steve responds, Paris tells him that she has changed her mind. Which statement is true?

Correct Answer
verified

Correct Answer
verified

Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct?

Correct Answer
verified

Consideration, an element of contractformation, requires that both parties

Correct Answer
verified

Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract?

Correct Answer
verified

According to the mailbox rule, an acceptance if effective

Correct Answer
verified

Consideration requires the parties to exchange items of equal value.

Correct Answer
verified

When determining if an offer exists, the court will look to the subjective intent of the offeror.

Correct Answer
verified

Exam 7: Mutual Assent: Agreement and Consideration

All of the following are required for promissory estoppel except

Correct AnswerverifiedShow Answer

Paris offers to sell her landscaping business to Steve for $100,000.00. Before Steve responds, Paris tells him that she has changed her mind. Which statement is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct?

Correct AnswerverifiedShow Answer

Consideration, an element of contractformation, requires that both parties

Correct AnswerverifiedShow Answer

Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract?

Correct AnswerverifiedShow Answer

According to the mailbox rule, an acceptance if effective

Correct AnswerverifiedShow Answer

Consideration requires the parties to exchange items of equal value.

Correct AnswerverifiedShow Answer

When determining if an offer exists, the court will look to the subjective intent of the offeror.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified