CLA/CP Exam Contract Law and Formation 2

Question 1

Under the mailbox rule, an acceptance transmitted by mail is effective at what point?

Accepted Answer

When it is properly dispatched by the offeree

Answer

The mailbox rule makes acceptance effective upon dispatch (dropping in the mailbox), not upon receipt by the offeror.

Question 2

A contract formed under duress is best described as:

Accepted Answer

Voidable at the option of the coerced party

Answer

Duress renders a contract voidable, not void; only the coerced party may elect to affirm or rescind it.

Question 3

Which doctrine prevents a party from using the statute of frauds as a defense when the other party has substantially performed in reliance on an oral contract?

Accepted Answer

Promissory estoppel

Answer

Promissory estoppel can bar the statute of frauds defense when injustice can only be avoided by enforcement of the oral promise.

Question 4

An advertisement in a newspaper is generally treated as:

Accepted Answer

An invitation to make an offer

Answer

Advertisements are generally invitations to make offers, not offers themselves, because they lack specific quantity and addressee.

Question 5

Which of the following is an example of an illusory promise that negates contract formation?

Accepted Answer

'I will buy your car if I feel like it.'

Answer

A promise conditioned solely on the promisor's own whim or desire is illusory because it commits the promisor to nothing.

CLA/CP Exam Practice Test

CLA/CP Exam Practice Test

CLA/CP Exam Contract Law and Formation 2