Contract Formation and Enforcement Flashcards
7 cards from real CLA/CP Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Formation and Enforcement flashcards as text
An offeror states the offer is 'open for 30 days.' Under common law, the offeror revokes after 10 days. What is the result?
Answer: The revocation is effective because offers are generally revocable
Under common law, an offeror may revoke at any time before acceptance even if a time period was promised, unless consideration was paid for an option contract.
Which of the following best describes an illusory promise?
Answer: A promise that leaves performance entirely to the promisor's discretion
An illusory promise imposes no actual obligation because the promisor retains complete discretion over whether to perform, making it insufficient as consideration.
Contracts for the sale of real estate, contracts that cannot be performed within one year, and contracts to pay another's debt are all subject to which requirement?
Answer: The Statute of Frauds
The Statute of Frauds requires these specific categories of contracts to be evidenced by a signed writing to be enforceable.
Party A enters a contract under threat of physical harm. The contract is:
Answer: Voidable at the option of Party A
A contract formed under duress is voidable, meaning the coerced party may elect to affirm or avoid the contract.
Under the mailbox rule, an acceptance sent by mail is effective:
Answer: When it is dispatched (placed in the mail)
The mailbox rule makes acceptance effective upon dispatch, meaning the contract is formed the moment the acceptance is properly mailed.
A minor enters a contract for a luxury sports car. The minor later seeks to disaffirm. The merchant may:
Answer: Recover the reasonable value of necessaries provided to the minor
While minors may disaffirm most contracts, they remain liable for the reasonable value of necessaries, though a luxury car does not qualify as a necessary.
Which of the following scenarios most clearly involves a unilateral contract?
Answer: A company offers a $500 reward to anyone who returns a lost dog
A unilateral contract is formed by a promise exchanged for an act; the reward offer invites acceptance by performance (returning the dog), not a promise.