1. True or False?

a. Intent to contract is determined by the offeror's objective intentions, beliefs, or assumptions.

b. An offeror has the power to revoke an option contract at any time.

c. In an implied-in-fact contract, the parties' words make and define the terms of their contract.

d. A counteroffer terminates an offer.

e. An express contract may be oral or in writing.

f. Under the ?Main Purpose Rule," an oral promise to pay the debt of another is enforceable.

1. On March 1, Best Computers and All Business Computers orally agree that Best Computers will pick up from National Computers Corporation and deliver to All Business Computers' office a certain number of computer chips every Monday for the month of March. Under the agreement, All Business Computers will pay for the delivery services on April 1. This contract is:
   1. bilateral, formal, and implied
   2. bilateral, informal, and implied
   3. bilateral, informal, and express
   4. unilateral, formal, and express
   5. unilateral, informal, and implied

1. Same facts as question 2. On March 31, after all of the deliveries have been made, the contract is:
   1. executed
   2. executory
   3. both executed and executory

1. Joe tells Sue, "If you promise to tutor me every Wednesday this semester from 3 p.m.. until 4 p.m., I will pay you $400." Sue tells Joe, "We have a deal." Sue tutors Joe every week. At the end of the semester, Joe pays Sue $400. At what point did the contract come into existence?
   1. When Sam told Sue that if she promised to tutor him every Wednesday this semester from 3 p.m. until 4 p.m., she would pay him $400.
   2. After Joe paid Sue $400.
   3. After Sue finished tutoring Joe.
   4. When Sue told Joe that they had a deal.

1. Same facts as question 4. At what point is the contract an executed contract?
   1. When Sam told Sue that if she promised to tutor him every Wednesday this semester from 3 p.m. until 4 p.m., she would pay him $400.
   2. After Joe paid Sue $400.
   3. After Sue finished tutoring Joe.
   4. When Sue told Joe that they had a deal.

1. A judge can apply the doctrine of quasi contract (implied-in-law contract) to a dispute between two companies
   1. Only if there is not a valid contract covering the area in question.
   2. Only if there is a valid contract covering the area in question.
   3. Whether or not there is a valid contract covering the area in question.
   4. Under no circumstances.
   5. Any time one of the companies requests it.

1. Landscape Design Company and Garden Supply Store sign a contract in which Garden Supply Store agrees to deliver soil and plants to Landscape Design Company in exchange for Landscape Design Company's promise to pay for the goods. Garden Supply Store delivers the products;

Landscape Design has not yet paid. The contract is

1. Executory on the part of Garden Supply Store.
2. Executory on the part of Landscape Design Company.
3. Fully executed.
4. Neither executed nor executory on the part of either party.
5. Void.

1. Mike is the manager of a hardware store. His best employee is Danielle. Mike says to Danielle, "You've been doing a good job lately. If I like what you do over the next two months, I may give you a $1,000 bonus." Is Mike's promise enforceable in court?
   1. No, because Mike had a pre-existing duty to pay Danielle the bonus.
   2. No, because Mike made a promise based on past consideration.
   3. No, because Mike's promise is illusory.
   4. Yes, because all the requirements of a contract are met.
   5. Yes, because Mike made a promise.

1. Joe offers to buy a laser printer, with a case of paper and an extra cartridge, from Best Office Products for $250. Sue, an employee of Best Office Products, says, "OK, but no paper and no extra cartridge." Sue has:
   1. accepted the offer.
   2. ratified the offer.
   3. rejected the offer and made a counteroffer.
   4. rejected the offer without making a counteroffer.
   5. created an option contract.

1. People's Airline offers its customers a "buy seven roundtrip tickets within a year of the first ticket's purchase and get one roundtrip ticket free" card. Customer purchases seven roundtrip tickets within that one year. As a result:
   1. no contract is created and customer is out of luck.
   2. no contract is created but a court could apply the doctrine of quasi-contract.
   3. an option contract is created.
   4. a bilateral contract is created.
   5. a unilateral contract is created.

11. DBA, Inc. makes an offer to the owners of EFG, Co. to buy the entire company. The power to revoke the offer rests with:

1. DBA and EFG together only.
2. DBA or EFG.
3. EFG only.
4. DBA only.
5. the court.

1. On December 1, Sue offers to sell her car to John for $450, and she states, "This offer expires at 6:30 p.m. on December 11. At 7:30 p.m. on December 11, John tells Sue, "I accept." Sue has not yet sold the car. Is there a contract?
   1. Yes, because Sue has not yet sold her car.
   2. Yes, because Sue has not revoked her offer.
   3. No, because Sue has revoked her offer.
   4. No, because the offer was terminated at 6:30 p.m. on December 11.

1. Owen buys a motorcyle while still a minor and continues to maintain and operate it for almost a year after he turns 18 years old. Courts are likely to hold that he had
   1. ratified the contract
   2. emancipated the contract
   3. rescinded the contract
   4. disaffirmed the contract
   5. created an option contract.

1. Curt promises to buy illegal (unauthorized) copies of CDs and DVDs for $109 from Donna, who promises to deliver on May 1. These promises are most likely:
   1. enforceable (b) illusory (c) valid

(d) voidable (e) void

1. Joanne goes to a garage sale where she finds jewelry for sale. She buys a handful of what appears to be costume jewelry for her daughter to play with. She pays $5 for it. Later, a friend of Joanne happens to see the jewelry and discovers that one piece consists of diamonds and is worth about $2,000. If the seller of the jewelry seeks to rescind this contract, which of the following is true?
   1. This is a case of mutual mistake, which allows either party to rescind the contract.
   2. This is a case of mutual mistake in value; the contract is fully enforceable.
   3. This is a case of unilateral mistake by Joanne, who can rescind the contract.
   4. This is a case of fraud, and Joanne can rescind the contract.
   5. This is a case of fraud, but Joanne cannot rescind the contract.

1. John was a close personal friend and financial advisor to Dorothy, who was 88 years old and very ill. When Dorothy died, her relatives learned that her will left all of her property to John. If Dorothy's relatives contest the will, what is their best argument?
   1. duress
   2. illegality
   3. undue influence
   4. unconscionability
   5. adhesion contract

17. Lucy Lawyer recently became an attorney and wants to rent office space, but Laura Landlord will not rent to her without a guarantee of payment. Lucy's Mother, an established attorney, phones Laura and tells her that if Lucy does not pay her rent, she (Mother) will pay Laura. Two months after moving into the office, Lucy stops paying the rent. Laura demands that Mother pay the rent. Does Mother have to pay the rent?

1. No, because this is not a contract for the sale of goods worth $500 or more.
2. No, because this is a collateral promise that must be in writing to be enforceable.
3. Yes, because Mother made a promise.
4. Yes, because all of the requirements of a contract are met.
5. Yes, because Mother would be unjustly enriched if she does not pay the rent.

1. Which of the following contracts would have to be in writing in order to be enforceable under the statute of frauds?
   1. fully executed oral contract for the sale of land.
   2. contracts for services for an amount greater than $500.
   3. executed bilateral contract which cannot be performed within one year after it is made.
   4. a promise to pay someone else's debt if that person fails to pay it.
   5. a contact for the sale of a $50 office chair.

1. The Statute of Frauds requires that certain types of contracts:
   1. be in writing in order to be enforceable
   2. be in writing and signed by two witnesses in order to be valid
   3. contain a promise for an act
   4. contain a promise for a promise
   5. have two or more attorneys present at the signing of a written contract

1. Prior to signing a written agreement for hotel accommodations that provided for no refunds, the hotel manager said to the guest, "We will give refunds if you have a good reason." Assuming there was no fraud on the part of the hotel:
   1. The guest can introduce evidence of the oral statement to prove her entitlement to a refund.
   2. The oral statement will take precedence over the terms of the written agreement.
   3. The oral statement will not be considered evidence of the contract terms by a court.
   4. The contract is against public policy because of its mixture of oral and written terms.
   5. The hotel will be prosecuted for false advertising.

1. Al and Bob enter into an oral contract for the sale of $600 in lumber. Al lists the terms of the contract on a sheet of paper that includes his business logo and address and signs it. Bob does not sign the paper. Which of the following statements is true?
   1. Al can successfully enforce the agreement, but Bob cannot enforce it.
   2. Both Bob and Al can successfully enforce the agreement.
   3. Neither Bob nor Al can successfully enforce the agreement.
   4. Al cannot successfully enforce the agreement, but Bob can enforce it.