True/False (1 point each)
Indicate whether the sentence or statement is true or
false.
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1.
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All serious agreements are contracts.
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2.
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Social agreements create legal obligations.
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3.
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Every offer, when properly made, is always ended by either acceptance or
rejection by the offeree.
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4.
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An offer made to one person can be accepted by another.
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5.
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All contracts must be in writing.
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6.
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Verbal (oral) contracts can be enforced in a court of law.
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Multiple Choice (2 points each)
Identify the letter of the choice that best completes the
statement or answers the question.
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7.
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Which of the following is NOT one of the major requirements for a
contract?
a. | time | c. | capacity | b. | genuine assent | d. | consideration |
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8.
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A valid offer must be communicated to the offeree and
a. | the offeror must intend to create a legal obligation | c. | both a and b | b. | the terms must be
definite and complete | d. | none
of these |
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9.
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An unaccepted offer may be terminated by
a. | a counteroffer | c. | the rejection of the offeree | b. | a reasonable length
of time | d. | all of
these |
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10.
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Capacity to contract means that the person
a. | has a genuine need for the goods or services purchased | c. | has the ability, according to law,
to understand his or her actions and the effect of those actions | b. | has ample room to
store goods that are purchased | d. | all of the above |
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Select the term that best matches the definition
given. (2 points each)
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11.
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Something given or received in a contract. This could include money or
goods.
a. | consideration | c. | product liability | b. | reconciliation | d. | anticipation |
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12.
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Which one of these is NOT a condition of a valid offer.
a. | the terms of the offer must be definite | c. | the offer must be communicated to
the offeree | b. | the terms of the offer must be complete | d. | all of these are conditions of a valid
offer |
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Matching (1 point each)
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Select the term that best matches the reason the described offer can be
terminated. Each answer will be used no more than once. There are more terms than
questions.
a. | revocation | e. | intervening
illegality | b. | rejection | f. | destruction of subject matter | c. | counteroffer | g. | death or insanity | d. | lapse of
time | h. | forbearance |
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13.
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Ted isn’t really into music - he tells Phil “No Thanks” when
Phil offers to sell him his Ipod.
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14.
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Susan offers to sell Marie her classical guitar. Marie thinks the price is a
great deal, and is considering the offer. A recent news story says that the guitar strings
found on this type of guitar are made of the leather of a newly endangered species.
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15.
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Mrs. Riley offers to sell her camper trailer to her neighbor for $1,200.
Mrs. Riley, unfortunately and suddenly, dies.
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16.
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Phil offers to sell Ted his Ipod for $200. Ted isn’t really into
music, but he offers Phil $150 instead.
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Completion (1 pts. each)
Complete each sentence or statement.
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17.
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List 3 types of contracts that MUST BE IN
WRITING
a._______________________________
b._______________________________
c._______________________________
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