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WorksheetsChapter 6 Contracts
Total questions: 60
Worksheet time: 5hrs 6mins
Name
Class
Date
1.
The terms of a contract must be accepted by the party to whom it was communicated.
a)
true
b)
false
2.
An agreement to commit a crime can be considered a contract.
a)
true
b)
false
3.
A bilateral contract is one that is formed by a mutual exchange of legally binding promises.
a)
true
b)
false
4.
An offeror must appear to be serious when making an offer.
a)
true
b)
false
5.
Words spoken in anger are not considered an offer.
a)
true
b)
false
6.
Preliminary negotiations are considered to be offers.
a)
true
b)
false
7.
A purported offer that lacks essential information is legally
ineffective.
ineffective.
a)
true
b)
false
8.
An executed contract is a contract that has not been fully performed.
a)
true
b)
false
9.
A person who is not the intended offeree can accept the offer.
a)
true
b)
false
10.
Advertisements that ask the offeree to perform an act as a way of accepting cannot be considered offers.
a)
true
b)
false
11.
An offer made to one person can be accepted by another.
a)
true
b)
false
12.
The mirror image rule requires that the terms in the acceptance must be close to the terms contained in the offer.
a)
true
b)
false
13.
An offer can be made to a particular group or to the public.
a)
true
b)
false
14.
Any variation made to a contract dealing with the sale of goods is a counteroffer if agreed in advance.
a)
true
b)
false
15.
A mental decision to accept an offer is not an acceptance.
a)
true
b)
false
16.
A bilateral acceptance occurs when an offeree indicates acceptance by performing his or her obligations under the contract.
a)
true
b)
false
17.
A unilateral acceptance occurs when an offeree indicates acceptance by giving a promise.
a)
true
b)
false
18.
Contractual communications such as offers and counteroffers can only be communicated in writing.
a)
true
b)
false
19.
An acceptance is the only form of contractual communication that is effective when sent.
a)
true
b)
false
20.
Oral acceptances are effective the moment the words are spoken directly to the offeror.
a)
true
b)
false
21.
A faxed acceptance of a contract becomes effective instantaneously when the transmission lines are open and both sending and receiving equipment work properly.
a)
true
b)
false
22.
Courts in some states apply the mirror image rule only when the term in the offer is material.
a)
true
b)
false
23.
Hall sponsored a boat race in which the first prize was advertised as a 14 foot boat trailer and a 20 horsepower boat. After verifying with Hall that the prizes advertised were correct, Bean entered the race and won. When he went to collect the prizes, he was told that there had been a mistake and was offered a 6 horsepower motor as first prize. Bean sued, alleging that he had a contract for the prizes offered. Does Bean get to have the 20 horsepower boat? Explain. [Hall v. Bean, 582 S.W. 2d 263 (Tex. 1979)]
a)
No, Bean did not perrform his part of a unilateral contract.
b)
Yes, Bean did perform his part of a unilateral contract.
24.
A faxed acceptance of a contract becomes effective instantaneously when the transmission lines are open and both sending and receiving equipment work properly.
a)
true
b)
false
25.
The right of ___ allows an offeror to withdraw an offer before it is accepted.
a)
revocation
b)
termination
c)
coutneroffer
26.
An acceptance to an offer must be received within the ____ stated in the offer
a)
parameters
b)
time
c)
option
27.
When an offeree rejects the offer, the offer is ___ .
a)
original
b)
an option
c)
terminated
28.
A(n) ___ results when the offeree changes the offeror’s terms.
a)
option
b)
firm offer
c)
counteroffer
29.
A(n) ___ is made when an offeree gives the offeror something of value in return for a promise to keep the offer open.
a)
firm offer
b)
option
c)
counteroffer
30.
___ are those who regularly deal in bought or sold goods.
a)
merchants
b)
sailors
c)
distributors
31.
A counteroffer terminates the ___ offer.
a)
implied
b)
mirror
c)
original
32.
The ___ makes firm offers binding for the time stated.
a)
UCC
b)
merchants
c)
IRS
33.
A contractual proposal by a merchant for the sale or purchase of goods stating in a signed writing how long it is to stay open is called a ___ .
a)
flimsy offer
b)
firm offer
c)
counteroffer
34.
Death or ___ on the part of the offeror or the offeree terminates their offer.
a)
marriage
b)
insanity
c)
capacity
35.
Proposal to do something
a)
engagement
b)
offer
c)
implied
36.
Judges use the test of the ____________________ person to determine whether an offer was made.
a)
angry
b)
reasonable
c)
insane
37.
Contracts are the agreements between two or more parties that create obligations.
a)
true
b)
false
38.
All serious agreements are contracts.
a)
true
b)
false
39.
If you make an offer in jest, but a reasonable person would interpret your conduct otherwise, you have made an offer.
a)
true
b)
false
40.
When the offeror communicates an offer to contract, the offeree is not required to accept it, but he or she may choose to do so.
a)
true
b)
false
41.
Consideration is the legal ability to contract.
a)
true
b)
false
42.
Advertisements are considered invitations rather than offers.
a)
true
b)
false
43.
Every offer, when properly made, is always ended either by acceptance or rejection by the offeree.
a)
true
b)
false
44.
Even though the offeree has given nothing of value in exchange, a merchant who makes a firm offer may not revoke it.
a)
true
b)
false
45.
An offer made to one person can be accepted by another.
a)
true
b)
false
46.
An offeror’s attempt to word the offer so that silence would appear to be an acceptance is valid.
a)
true
b)
false
47.
Which of the following is not one of the major requirements for a contract?
a)
time
b)
genuine assent
c)
capacity
d)
consideration
48.
A valid offer must be communicated to the offeree and
a)
the offeror must intend to create a legal obligation
b)
the terms must be definite and complete
c)
both a and b
d)
none of these
49.
An unaccepted offer may be terminated by
a)
a counteroffer
b)
a reasonable length of time
c)
the rejection of the offeree
d)
all of these
50.
A firm offer is binding
a)
for a stated time
b)
for not more than three months
c)
even when nothing is paid by the offeree
d)
all of these
51.
There is no contract
a)
without the exchange of money
b)
without both offer and acceptance on mutually agreed terms
c)
both a and b
d)
none of these
52.
Social arrangements
a)
are not legal obligations
b)
are legal contracts
c)
are subject to breach of contract
d)
none of these
53.
Capacity to contract means that the person
a)
has a genuine need for the goods or services purchased
b)
has ample room to store goods that are purchased
c)
has the ability, according to law, to understand his or her actions and the effect of those actions
d)
all of these
54.
When the price is not specified in contracts between individuals who regularly deal in such goods,
a)
the current market price is used as the basis
b)
the highest market price is the basis
c)
the lowest market price is the basis
d)
the contract is null and void
55.
Offers that require the offeree to accept by communicating the requested promise to the offeror are
a)
unilateral contracts
b)
bilateral contracts
matching offer contracts
matching offer contracts
c)
bilateral contracts
d)
mirror image rules
56.
When the terms of acceptance must exactly match the terms contained in the offer, it is called
a)
a unilateral contract
b)
a bilateral contract
c)
a matching offer contract
d)
a mirror image rule
57.
Cheya asks her college roommate how much money she would give her for a scientific graphing calculator that she no longer needs. The roommate replies, “I’d probably give you around $50 for it.” Has Cheya made a legal offer?
a)
yes
b)
no
58.
Price, subject matter, and quantity are considered ____________________ terms of an offer.
a)
implied
b)
essential
c)
reasonable
59.
Words spoken in ____________________ or terror are not considered contracts.
a)
anger
b)
haste
c)
Spanish
60.
Person who makes an offer
a)
offeree
b)
offeror
c)
boss
d)
-
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