Test 1 Question Bank
Business Law 265
Spring 2008
Exam #1, February 26, 2008
1. Jerry sent a letter containing an offer to sell his mountain bike to Bill for $300. This letter was sent on Oct. 1 and it was received on Oct. 4. On Oct. 5 Bill sent a letter to Jerry accepting the offer. But then Bill changed his mind; on Oct 6 Bill sent a message by personal messenger to Jerry, rejecting Jerry’s offer. The messenger delivered the rejection and it was received by Jerry on Oct. 7. The letter containing Bill’s acceptance was received on Oct. 8. Based on the above, has a contract been formed for the sale of the mountain bike?
No, because the rejection was received before the acceptance was received
2. Under the “golden rule” regarding assignments, which party must not be harmed (made worse off) by the assignment? non assigning party
3. Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian receives the revocation on June 19. Was a contract formed? | Yes, on June 18. | 4. Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 12? Bilateral, express, executed, valid 5. The rejection of an offer:
Is effective when received by the offeror, and prevents the offeree from later accepting that original offer.
6. Kristin offers to sell land to Ian for $5,000. Ian says that he will not pay$5,000 but he will pay $4,000. Kristin says no. Two days later, Ian changes his mind and delivers an acceptance to Kristin’s original offer. Which of the following best describes this situation? Ian made a counteroffer, which
Spring 2008
Exam #1, February 26, 2008
1. Jerry sent a letter containing an offer to sell his mountain bike to Bill for $300. This letter was sent on Oct. 1 and it was received on Oct. 4. On Oct. 5 Bill sent a letter to Jerry accepting the offer. But then Bill changed his mind; on Oct 6 Bill sent a message by personal messenger to Jerry, rejecting Jerry’s offer. The messenger delivered the rejection and it was received by Jerry on Oct. 7. The letter containing Bill’s acceptance was received on Oct. 8. Based on the above, has a contract been formed for the sale of the mountain bike?
No, because the rejection was received before the acceptance was received
2. Under the “golden rule” regarding assignments, which party must not be harmed (made worse off) by the assignment? non assigning party
3. Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian receives the revocation on June 19. Was a contract formed? | Yes, on June 18. | 4. Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 12? Bilateral, express, executed, valid 5. The rejection of an offer:
Is effective when received by the offeror, and prevents the offeree from later accepting that original offer.
6. Kristin offers to sell land to Ian for $5,000. Ian says that he will not pay$5,000 but he will pay $4,000. Kristin says no. Two days later, Ian changes his mind and delivers an acceptance to Kristin’s original offer. Which of the following best describes this situation? Ian made a counteroffer, which