FREE CLA/CP Contract Law and Formation Questions and Answers

Question 1

An oral agreement is made between a vineyard owner and a restaurant to supply a specific quantity of grapes each month for the next two years.
Six months into the agreement, the vineyard owner refuses to deliver any more grapes.
Which legal principle will most likely prevent the restaurant from successfully suing for breach of contract?

Accepted Answer

Statute of Frauds

Answer

Parol Evidence Rule

Answer

Doctrine of Promissory Estoppel

Answer

Unconscionability

Question 2

Which of the following lists the essential elements required for the formation of a legally enforceable contract?

Accepted Answer

Offer, acceptance, consideration, and legal purpose

Answer

A written document, a notary seal, and legal capacity

Answer

A formal offer, a counteroffer, and a signature

Answer

A public declaration, mutual assent, and a witness

Question 3

On May 1st, a seller sends a letter to a buyer offering to sell a rare book for $5,000. On May 3rd, the buyer mails a letter accepting the offer. On May 4th, before receiving the buyer's acceptance, the seller calls the buyer and revokes the offer. Under the 'mailbox rule,' is there a valid contract?

Accepted Answer

Yes, because the acceptance was effective when it was mailed on May 3rd.

Answer

No, because the revocation was communicated before the acceptance was received.

Answer

No, because a phone call is a faster method of communication than mail.

Answer

Yes, but only if the buyer's letter was sent via certified mail.

Question 4

In which of the following scenarios is the element of consideration most likely lacking, making the promise unenforceable?

Accepted Answer

A business owner promises an employee a bonus 'for all the great work you did last year.'

Answer

A homeowner promises a roofer $5,000 to replace a roof, and the roofer agrees.

Answer

A student pays a tutor $50 in exchange for one hour of instruction.

Answer

A person agrees to sell their car for a price significantly below its market value.

Question 5

A pet owner posts flyers in a neighborhood offering a $200 reward for the return of their lost cat. A neighbor finds the cat and returns it to the owner. What type of contract has been formed?

Accepted Answer

A unilateral contract, because the offer could only be accepted by performance.

Answer

A bilateral contract, because two parties were involved.

Answer

An executed contract, because the act is complete.

Answer

A voidable contract, because the offer was made to the public at large.

Question 6

A company offers to buy 1,000 widgets from a supplier for $10 per widget. The supplier responds, 'We accept your offer, but the price is $12 per widget.' Which of the following statements is legally correct under common law?

Accepted Answer

The supplier's response is a counteroffer that terminates the original offer.

Answer

A contract is formed for $12 per widget.

Answer

The original offer is still open, and the supplier can accept it later.

Answer

A contract is formed for $10 per widget under the 'last shot' rule.