CLA/CP Exam Contract Formation and Enforcement 3

Question 1

An offeror states the offer is 'open for 30 days.' Under common law, the offeror revokes after 10 days. What is the result?

Accepted Answer

The revocation is effective because offers are generally revocable

Answer

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.

Question 2

Which of the following best describes an illusory promise?

Accepted Answer

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

Answer

An illusory promise imposes no actual obligation because the promisor retains complete discretion over whether to perform, making it insufficient as consideration.

Question 3

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?

Accepted Answer

The Statute of Frauds

Answer

The Statute of Frauds requires these specific categories of contracts to be evidenced by a signed writing to be enforceable.

Question 4

Party A enters a contract under threat of physical harm. The contract is:

Accepted Answer

Voidable at the option of Party A

Answer

A contract formed under duress is voidable, meaning the coerced party may elect to affirm or avoid the contract.

Question 5

Under the mailbox rule, an acceptance sent by mail is effective:

Accepted Answer

When it is dispatched (placed in the mail)

Answer

The mailbox rule makes acceptance effective upon dispatch, meaning the contract is formed the moment the acceptance is properly mailed.

CLA/CP Exam Practice Test

CLA/CP Exam Practice Test

CLA/CP Exam Contract Formation and Enforcement 3