CLA/CP Exam CLA/CP Contract Law and Formation Questions and Answers 2 — Questions and Answers
Question 1: Which of the following is required for a valid acceptance of an offer under common law?
- Mirror image of the offer terms (Correct answer)
- Substantial similarity to the offer
- A written acknowledgment
- Consideration from a third party
Correct answer: Mirror image of the offer terms
Under the common law mirror image rule, acceptance must match the exact terms of the offer without modification.
Question 2: Under the mailbox rule, when does an acceptance become effective?
- When properly dispatched by the offeree (Correct answer)
- When received by the offeror
- When the offeror reads it
- When both parties sign the contract
Correct answer: When properly dispatched by the offeree
The mailbox rule states that acceptance is effective upon proper dispatch, not upon receipt by the offeror.
Question 3: What is the primary distinction between a bilateral and a unilateral contract?
- Bilateral involves exchange of promises; unilateral requires performance to accept (Correct answer)
- Bilateral requires writing; unilateral does not
- Bilateral is enforceable; unilateral is not
- Bilateral involves two parties; unilateral involves one
Correct answer: Bilateral involves exchange of promises; unilateral requires performance to accept
A bilateral contract is formed by mutual promises, while a unilateral contract is accepted only through the offeree's complete performance.
Question 4: Which doctrine prevents a party from retracting a promise when the other party has reasonably relied on it to their detriment?
- Promissory estoppel (Correct answer)
- Laches
- Undue influence
- Mutual mistake
Correct answer: Promissory estoppel
Promissory estoppel enforces a promise without traditional consideration when the promisee has detrimentally relied on it.
Question 5: An advertisement in a newspaper is generally considered which of the following?
- An invitation to negotiate, not an offer (Correct answer)
- A binding unilateral offer
- A firm offer under the UCC
- An option contract
Correct answer: An invitation to negotiate, not an offer
Advertisements are typically treated as invitations to negotiate rather than binding offers because they lack specific terms directed at a particular offeree.
Question 6: What effect does a counteroffer have on the original offer?
- It terminates the original offer (Correct answer)
- It modifies the original offer
- It extends the original offer's deadline
- It has no effect on the original offer
Correct answer: It terminates the original offer
A counteroffer operates as both a rejection and a new offer, thereby terminating the original offer.
CLA/CP Exam CLA/CP Contract Law and Formation Questions and Answers 2
Which of the following is required for a valid acceptance of an offer under common law?