SD Bar Contracts

Question 1

Under the common law, which of the following is required for a valid contract?

Accepted Answer

Offer, acceptance, and consideration

Answer

Written agreement signed by both parties

Answer

Notarization and witnesses

Answer

Consideration and a written memorandum

Question 2

Under the mirror image rule, which of the following best describes how an acceptance must be made?

Accepted Answer

The acceptance must match the terms of the offer exactly

Answer

The acceptance may vary minor terms without affecting contract formation

Answer

The acceptance must be in writing to be effective

Answer

The acceptance is valid only if delivered within 24 hours

Question 3

A bilateral contract is formed when:

Accepted Answer

Both parties exchange promises

Answer

One party performs an act in response to an offer

Answer

A written document is signed by one party

Answer

An offeror makes a firm offer that cannot be revoked

Question 4

Under the mailbox rule, when is an acceptance by mail effective?

Accepted Answer

Upon dispatch, when properly mailed

Answer

Upon receipt by the offeror

Answer

Upon the offeror's acknowledgment

Answer

Three business days after mailing

Question 5

Which of the following is NOT valid consideration for a contract?

Accepted Answer

A promise to perform a pre-existing legal duty

Answer

A promise to pay money

Answer

A promise to refrain from a legal right

Answer

A promise to deliver goods at a future date

Question 6

Under UCC Article 2, a merchant's firm offer is irrevocable for up to:

Accepted Answer

Three months

Answer

Six months

Answer

One year

Answer

Thirty days

Question 7

A contract between two parties is voided by mutual mistake when:

Accepted Answer

Both parties were mistaken about a material fact existing at the time of contracting

Answer

One party was mistaken about the value of the subject matter

Answer

Both parties made mathematical errors in calculating the price

Answer

One party misrepresented a fact to the other party