FYLSX Contract Formation Principles 3 — Questions and Answers
Question 1: Lee sends an offer to Ming by email on Tuesday at 9 AM, stating 'this offer expires Friday at noon.' Ming attempts to accept Thursday at 11 PM but accidentally sends the email to the wrong address. Is there a contract?
- Yes, because Ming attempted acceptance before the deadline.
- No, because acceptance must actually be communicated to the offeror. (Correct answer)
- Yes, because the mailbox rule makes acceptance effective upon sending.
- No, because email offers require written signatures.
Correct answer: No, because acceptance must actually be communicated to the offeror.
Acceptance sent to the wrong address is not dispatched properly, so the mailbox rule does not apply and no contract is formed.
Question 2: Nina promises to pay Otto $500 if he paints her fence. This is best described as:
- A bilateral contract offer seeking a promise in return.
- A unilateral contract offer that can only be accepted by completing performance. (Correct answer)
- An illusory promise because Nina can change her mind.
- An option contract because a price term is specified.
Correct answer: A unilateral contract offer that can only be accepted by completing performance.
An offer conditioned on performance ('if you paint') rather than a promise creates a unilateral contract, accepted only by completing the act.
Question 3: Paul and Quinn enter a contract for the sale of Paul's antique clock for $2,000. Unknown to both, the clock had been destroyed in a fire the day before. The contract is:
- Valid because both parties agreed.
- Voidable at Paul's option because he owned the clock.
- Void due to mutual mistake about the existence of the subject matter. (Correct answer)
- Unenforceable because antiques require special contracts.
Correct answer: Void due to mutual mistake about the existence of the subject matter.
When both parties are mistaken about the existence of the contract's subject matter, the contract is void from the outset.
Question 4: Rosa, a 16-year-old, signs a contract to purchase a used car for $3,000. She later wishes to cancel. Under contract law, Rosa's contract is:
- Void because minors cannot contract.
- Voidable at Rosa's option due to her minority status. (Correct answer)
- Voidable only if her parents disapprove.
- Valid because car purchases are necessaries.
Correct answer: Voidable at Rosa's option due to her minority status.
Contracts made by minors are voidable at the minor's election, allowing Rosa to disaffirm the contract.
Question 5: Sam offers to sell his house to Tina for $400,000, and Tina replies, 'I accept, provided you repaint the kitchen first.' This response is:
- A valid acceptance creating a contract with an additional condition.
- A counteroffer that terminates Sam's original offer. (Correct answer)
- An acceptance with a minor modification that courts will ignore.
- A conditional acceptance that ripens into a contract if Sam repaints.
Correct answer: A counteroffer that terminates Sam's original offer.
Under common law, the mirror image rule requires acceptance to match the offer exactly; adding new terms makes Tina's response a counteroffer.
Question 6: Which of the following best describes 'promissory estoppel' in the context of contract formation?
- A doctrine requiring all promises to be in writing to be enforceable.
- A doctrine that enforces a promise when the promisee reasonably relied on it to their detriment. (Correct answer)
- A rule that prevents parties from modifying written contracts orally.
- A principle that bars a promisor from suing for breach if they breached first.
Correct answer: A doctrine that enforces a promise when the promisee reasonably relied on it to their detriment.
Promissory estoppel enforces a promise lacking consideration when the promisee reasonably and detrimentally relied on it and injustice can only be avoided by enforcement.
Question 7: Uma agrees to sell her laptop to Victor for $800. Before Victor accepts, Uma changes her mind. Victor argues the offer was irrevocable because he relied on it to turn down another laptop deal. Which doctrine might protect Victor?
- The parol evidence rule.
- Promissory estoppel based on detrimental reliance. (Correct answer)
- The firm offer rule under the UCC.
- The option contract rule.
Correct answer: Promissory estoppel based on detrimental reliance.
Promissory estoppel may prevent revocation if Victor detrimentally relied on Uma's offer in a foreseeable way.
FYLSX Contract Formation Principles 3
Lee sends an offer to Ming by email on Tuesday at 9 AM, stating 'this offer expires Friday at noon.' Ming attempts to accept Thursday at 11 PM but accidentally sends the email to the wrong address.
Is there a contract?