CLA/CP Exam CLA/CP Contract Law and Formation 1

Question 1

Which of the following best describes an 'illusory promise' in contract law?

Accepted Answer

A promise that appears binding but leaves performance entirely to the promisor's discretion

Answer

A promise that is enforceable only if the other party performs first

Answer

A promise made under duress that cannot be enforced

Answer

A promise supported by nominal consideration

Question 2

Under the common law mirror image rule, what happens when an offeree responds to an offer with modified terms?

Accepted Answer

The response operates as a counteroffer and rejects the original offer

Answer

The original offer is accepted and the modifications become part of the contract

Answer

The modifications are void but the original acceptance stands

Answer

The offeror must explicitly reject the modified terms in writing

Question 3

Which of the following transactions is governed by Article 2 of the Uniform Commercial Code rather than the common law of contracts?

Accepted Answer

A contract for the sale of 500 widgets

Answer

A lease of commercial office space for two years

Answer

A contract for an attorney to draft a will

Answer

A partnership agreement between two business owners

Question 4

A contractor offers to build a deck for $8,000. Before the homeowner accepts, the contractor calls to revoke the offer. The homeowner argues the offer was irrevocable. Under common law, which fact would make the offer irrevocable?

Accepted Answer

The homeowner paid the contractor $50 to keep the offer open for 30 days

Answer

The offer was made in writing and signed by the contractor

Answer

The homeowner had already begun clearing the yard in preparation

Answer

The offer specified a 30-day acceptance window

Question 5

What is the legal effect of a contract formed under economic duress?

Accepted Answer

The contract is voidable at the election of the party who was coerced

Answer

The contract is void ab initio and has no legal effect

Answer

The contract is enforceable but damages are limited to restitution

Answer

The contract is unenforceable only if the duress was physical in nature

Question 6

Which of the following scenarios best illustrates the concept of 'past consideration'?

Accepted Answer

Eve promises to pay Frank $200 for rescuing her dog last month

Answer

Alice promises to pay Bob $500 if he paints her fence next week

Answer

Carlos gives Diana $100 in exchange for her promise to deliver goods

Answer

Grace and Henry exchange mutual promises to perform services