NYLE Contract Law Principles 5

Question 1

Which of the following statements best describes the 'mailbox rule' regarding contract acceptance?

Accepted Answer

Acceptance is effective upon dispatch if the offeree uses an authorized means of communication

Answer

The mailbox rule makes acceptance effective upon proper dispatch (mailing), not upon receipt, as long as the offeree uses an authorized means of communication.

Question 2

An agreement to keep an offer open in exchange for consideration is called:

Accepted Answer

An option contract

Answer

An option contract is a binding promise to keep an offer open, supported by consideration, which prevents the offeror from revoking during the option period.

Question 3

In a contract for the sale of goods, which implied warranty guarantees that goods are fit for the ordinary purposes for which they are used?

Accepted Answer

Implied warranty of merchantability

Answer

UCC §2-314 provides an implied warranty of merchantability—that goods are fit for the ordinary purposes for which such goods are used—arising in every sale by a merchant.

Question 4

Under New York's Statute of Frauds (GOL §5-703), a contract for the sale of real property must be in writing. Which of the following is an exception that may allow enforcement of an oral real estate contract?

Accepted Answer

The buyer has taken possession and made substantial improvements in reliance on the oral contract

Answer

Part performance—such as taking possession and making valuable improvements in reliance on an oral contract—may allow a court of equity to enforce an oral real estate agreement.

Question 5

Which of the following is NOT a required element for a contract to be enforceable?

Accepted Answer

Written form

Answer

Written form is not universally required—most contracts are valid orally unless a specific statute (e.g., the Statute of Frauds) requires writing.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE Contract Law Principles 5