Offer and Acceptance: The Foundation of Contract Formation

Question 1

Which of the following is NOT an essential element of an offer in the context of contract law?

Accepted Answer

Acceptance of the offer by the offeree

Answer

Intent by the offeror to create a legal obligation

Answer

Definiteness and certainty in the terms of the offer

Answer

Communication of the offer to the offeree

Question 2

As per the general rule, how should acceptance of an offer be communicated to the offeror?

Accepted Answer

Both (a) and (b).

Answer

Acceptance must be expressly communicated to the offeror through a clear statement of acceptance.

Answer

Acceptance can be implied through conduct that objectively manifests the offeree's intent to accept the offer.

Answer

Acceptance is effective upon the offeree's dispatch of the acceptance, even if it never reaches the offeror.

Question 3

In the context of a unilateral contract, how is the offer typically accepted?

Accepted Answer

By performance of the requested act specified in the offer

Answer

By communication of acceptance to the offeror

Answer

By both performance of the requested act and communication of acceptance

Answer

Neither performance of the requested act nor communication of acceptance

Question 4

What is the primary distinction between an invitation to treat and an offer in contract law?

Accepted Answer

An invitation to treat is not intended to be legally binding, while an offer is.

Answer

An invitation to treat is more specific in its terms than an offer.

Answer

An offer is accepted by performance, while an invitation to treat is not.

Answer

There is no meaningful distinction between an invitation to treat and an offer.

Question 5

Which of the following is NOT an essential element of an offer?

Accepted Answer

Consideration

Answer

Intent to be legally bound

Answer

Definiteness of terms

Answer

Communication to the offeree

Question 6

When does an offer become irrevocable?

Accepted Answer

By operation of law or agreement of the parties

Answer

Upon receipt of the acceptance

Answer

Upon lapse of a reasonable time

Answer

Upon consideration from the offeree

Question 7

What is the significance of the "mailbox rule"?

Accepted Answer

Acceptance is effective upon dispatch of the acceptance

Answer

Acceptance is effective upon receipt of the acceptance

Answer

Acceptance is effective upon communication of the acceptance

Answer

Acceptance is effective upon consideration of the acceptance

Question 8

What is the purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud in certain types of contracts

Answer

To ensure that contracts are in writing

Answer

To create a presumption of consideration

Answer

To provide a statute of limitations for contracts

Question 9

What is the difference between an express contract and an implied contract?

Accepted Answer

Express contracts are created by words, while implied contracts are created by conduct

Answer

Express contracts are written, while implied contracts are oral

Answer

Express contracts are more formal than implied contracts

Answer

There is no difference between express and implied contracts

Question 10

Precisely define the distinction between an invitation to treat and an offer. Provide specific examples to illustrate your explanation.

Accepted Answer

An invitation to treat is an expression of willingness to negotiate, while an offer is a definite proposal to enter into a legally binding contract.

Answer

An offer is always irrevocable, while an invitation to treat can be revoked at any time.

Answer

An invitation to treat is typically made through advertisements, while an offer is typically made in a written contract.

Answer

An invitation to treat is legally binding on the party making it, whereas an offer is not.

Question 11

Which of the following is NOT considered an essential element for an offer to be legally binding?

Accepted Answer

Acceptance by the offeree

Answer

Intent to create a legal obligation

Answer

Specificity and clarity of terms

Answer

Communication to the offeree

Question 12

Under the Uniform Commercial Code, which of the following methods of acceptance is NOT considered valid?

Accepted Answer

Acceptance by silence

Answer

Express acceptance

Answer

Implied acceptance through conduct

Answer

Mirror image acceptance

Question 13

When an offeree changes the terms of an offer before accepting it, this is legally referred to as a:

Accepted Answer

Counteroffer

Answer

Rejection

Answer

Acceptance with modifications

Answer

Revocation

Question 14

Which of the following is NOT a valid method for communicating an offer?

Accepted Answer

Implied offer through silence

Answer

Verbal communication

Answer

Written communication

Answer

Conduct that demonstrates an offer

Question 15

Which of the following is considered invalid consideration in the formation of a contract?

Accepted Answer

A pre-existing legal obligation

Answer

Payment of money

Answer

Promise to perform a future service

Answer

Something of value to the promisor

Question 16

An offer becomes effective only when it is communicated to the intended recipient, the offeree.

Accepted Answer

True

Answer

False

Question 17

The formation of a legally binding contract requires a mutual agreement or meeting of the minds between the parties involved.

Accepted Answer

True

Answer

False

Question 18

Which of the following is considered a valid method of accepting an offer through conduct?

Accepted Answer

Performing the action requested by the offeror

Answer

Remaining silent

Answer

Sending a written acceptance

Answer

Rejecting the offer verbally

Question 19

An offer must fulfill which essential elements: (A) Definite enough to be enforceable; (B) Communicated to the offeree; (C) Accepted in the same manner as it was made; (D) All of the above.

Accepted Answer

(D) All of the above

Answer

(A) Definite enough to be enforceable

Answer

(B) Communicated to the offeree

Answer

(C) Accepted in the same manner as it was made

Question 20

Which of the following statements accurately describes the legal effect of an offer?

Accepted Answer

An offer requires acceptance to become legally binding.

Answer

An offer automatically creates a binding contract upon being made.

Answer

An offer is merely an invitation to negotiate.

Answer

An offer becomes binding only if it is made in writing.

Question 21

Which of the following is NOT an essential element of a valid offer?

Accepted Answer

Mutual assent

Answer

Consideration

Answer

Definiteness

Answer

Capacity

Question 22

Under the Uniform Commercial Code, an offer cannot be accepted by:

Accepted Answer

silence

Answer

shipping goods

Answer

performance

Answer

written notice

Question 23

The objective theory of contracts states that:

Accepted Answer

a contract is formed based on the parties' outward expressions of agreement

Answer

a contract is formed based on the parties' subjective intentions

Answer

a contract is formed only when the parties sign a written agreement

Answer

a contract is formed only when the parties exchange consideration

Question 24

Which of the following is NOT an essential element of an offer?

Accepted Answer

Consideration

Answer

Intent to create a legal relationship

Answer

Definite and certain terms

Answer

Communication to the offeree

Question 25

When is an offer considered irrevocable?

Accepted Answer

When it is supported by consideration or under seal

Answer

When it is made in writing

Answer

When it is made to the public at large

Answer

When it is accepted by the offeree

Question 26

When is a counteroffer considered a rejection of the original offer?

Accepted Answer

When it contains any material changes OR proposes additional terms

Answer

When it is communicated to the offeror

Answer

When it is accepted by the offeror

Answer

When it is rejected by the offeror

Question 27

What is the legal significance of a unilateral contract?

Accepted Answer

It is a contract formed by a single promise

Answer

It requires mutual consent of both parties

Answer

It is only enforceable if the promise is supported by consideration

Answer

It is not legally binding

Question 28

Which of the following is NOT a defense to an offer?

Accepted Answer

Performance

Answer

Fraud

Answer

Mistake

Answer

Unconscionability

Question 29

When is a promise considered illusory?

Accepted Answer

When it is subject to conditions that are entirely within the promisor's control

Answer

When it is made without any consideration

Answer

When it is too vague or indefinite

Answer

When it is made with the intent to deceive

Question 30

What best defines an offer in contract law?

Accepted Answer

A proposal inviting another party to enter a contract.

Answer

A legally binding promise.

Answer

A document containing the final terms of an agreement.

Question 31

Which of the following is NOT an essential element of a valid offer?

Accepted Answer

Acceptance

Answer

Communication to the offeree

Answer

Definiteness of terms

Answer

Intention to be legally bound

Question 32

An offer can be terminated by all of the following methods EXCEPT:

Accepted Answer

Acceptance

Answer

Lapse of time

Answer

Revocation

Answer

Rejection

Question 33

A unilateral offer is one that:

Accepted Answer

Requires performance as acceptance

Answer

Is always irrevocable

Answer

Requires a promise as acceptance

Answer

Can be revoked at any time

Question 34

Which of the following is a valid form of acceptance of an offer?

Accepted Answer

Performance of the requested act

Answer

Rejection of the offer

Answer

Inquiring about the offer

Answer

Revocation of the offer

Question 35

The "mailbox rule" provides that:

Accepted Answer

Acceptance is effective upon dispatch

Answer

Acceptance is not effective until the offeror agrees to it

Answer

Acceptance is effective upon communication to the offeror

Answer

Acceptance is effective upon receipt

Question 36

An invitation to negotiate is:

Accepted Answer

Not an offer

Answer

A bilateral offer

Answer

A unilateral offer

Answer

An implied offer

Question 37

Which of the following is NOT an essential element of a valid offer?

Accepted Answer

Acceptance

Answer

Intent

Answer

Communication

Answer

Definiteness

Question 38

Which statement best describes the legal significance of an invitation to treat?

Accepted Answer

It is a preliminary step to an offer, inviting potential buyers to make offers.

Answer

It is an unconditional offer that can be immediately accepted.

Answer

It is a binding offer that cannot be revoked.

Answer

It is a counteroffer that modifies the terms of the original offer.

Question 39

Under which circumstances can an offer be effectively revoked?

Accepted Answer

At any time before acceptance, unless the offer is irrevocable.

Answer

Only if it is done in writing.

Answer

Only if it is communicated to the offeree.

Answer

Only after the offer has been accepted.

Question 40

The "mirror image" rule in contract law dictates that:

Accepted Answer

An acceptance must exactly match the terms of the offer.

Answer

An acceptance can add new terms to the offer.

Answer

An acceptance can modify the terms of the offer.

Question 41

Which of the following methods is NOT recognized as a valid means of accepting an offer?

Accepted Answer

Acceptance by silence

Answer

Acceptance by electronic communication

Answer

Acceptance by written communication

Answer

Acceptance by performance

Question 42

Which statement accurately describes the effect of a counteroffer?

Accepted Answer

It rejects the original offer and creates a new, independent offer.

Answer

It can be accepted by the original offeror without the need for further negotiation.

Answer

It constitutes a valid acceptance of the original offer.

Answer

It has no legal effect unless communicated to the original offeror.

Question 43

Who is legally capable of accepting an offer?

Accepted Answer

Any person with knowledge of the offer and the capacity to contract.

Answer

Only the person to whom the offer was made.

Answer

Only the person who made the offer.

Answer

Only a person who is a legal minor.

Question 44

Which of the following is NOT a requirement for a valid acceptance?

Accepted Answer

Consideration

Answer

Communication of the acceptance to the offeror

Answer

Knowledge of the offer

Answer

Unconditional assent to the terms of the offer

Question 45

Which of the following is an essential element of an offer?

Accepted Answer

Definiteness

Answer

Silence

Answer

Acceptance

Answer

Performance

Question 46

An acceptance becomes effective when it is:

Accepted Answer

Communicated to the offeror

Answer

Mailed to the offeror

Answer

Received by the offeror

Answer

Sent by the offeree

Question 47

The "mailbox rule" establishes that a valid acceptance is created when:

Accepted Answer

It is placed in the mail

Answer

It is received by the offeror

Answer

It is sent by the offeror

Answer

It is communicated to the offeror's agent

Question 48

The timeframe during which an offer can be revoked is before:

Accepted Answer

Acceptance

Answer

Counteroffer

Answer

Rejection

Answer

Lapse of time

Question 49

The effect of a counteroffer on the original offer is to:

Accepted Answer

Terminate it

Answer

Extend it

Answer

Accept it

Answer

Modify it

Question 50

Which of the following is NOT a means of accepting an offer?

Accepted Answer

Rejection

Answer

Promise

Answer

Performance

Answer

Shipment of goods

Question 51

An offer that remains unaccepted beyond a reasonable time will:

Accepted Answer

Expire

Answer

Be subject to revocation

Answer

Be extended indefinitely

Answer

Be automatically accepted

Question 52

Identify the type of acceptance that occurs through conduct:

Accepted Answer

Implied acceptance

Answer

Express acceptance

Answer

Unilateral acceptance

Answer

Conditional acceptance

Question 53

A bilateral contract comes into existence when:

Accepted Answer

An offer is accepted by a reciprocal promise

Answer

An offer is revoked

Answer

An offer is accepted by performance

Answer

An acceptance is communicated to the offeror