JD-NEXT EXAM QUESTIONS & CORRECT
ANSWERS WITH RATIONALES
COMPREHENSIVE PRACTICE EXAMINATION
(100+ QUESTIONS)
SECTION 1: CONTRACT FORMATION &
OFFER/ACCEPTANCE
Question 1
On Monday, Seller offers in writing to sell Buyer a vintage car
for $20,000, stating "this offer will remain open until Friday."
On Tuesday, Buyer calls Seller and says, "I'll give you
$18,000." Seller says nothing. On Wednesday, Buyer changes
his mind and calls Seller saying, "I accept your original offer
of $20,000." Is there a contract?
A) Yes, because the original offer was irrevocable until
Friday.
B) Yes, because Buyer's $18,000 proposal was not a rejection
but a mere inquiry.
**C)** No, because Buyer's $18,000 counteroffer terminated
the original offer.
D) No, because the offer was not in a signed writing.
,Correct Answer: C
Rationale: Under common law, a counteroffer operates as a
rejection of the original offer and terminates it. Buyer's
statement "I'll give you $18,000" is a counteroffer, not a
mere inquiry. The original offer was not an option contract (no
consideration given to keep it open), so Seller was free to
revoke or let it be terminated by counteroffer. Seller's
silence does not constitute acceptance of the counteroffer .
Question 2
A retailer advertises a new laptop for $299 in a newspaper
circular. The ad states "limited supply, first come first
served." A customer arrives at the store at opening time, but
the retailer has sold out. The customer sues for breach of
contract. What is the likely outcome?
A) The customer wins because advertisements are offers.
B) The customer wins because the ad specified "first come
first served."
C) The retailer wins because advertisements are generally
invitations to make an offer, not offers.
D) The retailer wins because the customer did not pay
consideration.
Correct Answer: C
,Rationale: Generally, advertisements are invitations to
bargain, not offers. An exception exists for ads that are
clear, definite, and leave nothing open for negotiation (e.g.,
reward offers). Here, the ad specified limited supply,
indicating it was not an offer to all but an invitation for
customers to make offers .
Question 3
A store publishes an advertisement in the local newspaper
stating that the first three customers on Saturday can buy a
specific model of luxury watch for $100, a significant
discount from its usual price of $1,000. If a customer arrives
as the first on Saturday and tenders $100 for the watch,
what is the legal status of the advertisement?
A) It is a bilateral offer that requires a promise in return.
B) It is a unilateral offer that becomes a contract when the
customer tenders the $100.
C) It is merely an invitation to make an offer.
D) It is not legally enforceable because it lacks consideration.
Correct Answer: B
Rationale: The advertisement specifies a clear action (being
one of the first three customers on Saturday) for a specific
, reward (buying the watch for $100), which constitutes a
unilateral offer that is accepted through performance .
Question 4
Seller offers to sell Buyer 100 shares of stock for
$50/share. Buyer responds, "I accept, but payment will be
made in 60 days." Seller does not respond. Is there a
contract?
A) Yes, because Buyer's response was a definite acceptance.
B) Yes, under the UCC because the additional term is not
material.
C) No, because Buyer's response added a term and thus is a
counteroffer at common law.
D) No, because the offer was not in writing.
Correct Answer: C
Rationale: Under the common law (applicable to stock sale, not
goods under UCC), the mirror image rule requires acceptance
to exactly match the offer. Any additional or different term
makes the response a counteroffer and rejects the original
offer. Here, adding a 60-day payment term is a counteroffer,
and Seller's silence is not acceptance .
ANSWERS WITH RATIONALES
COMPREHENSIVE PRACTICE EXAMINATION
(100+ QUESTIONS)
SECTION 1: CONTRACT FORMATION &
OFFER/ACCEPTANCE
Question 1
On Monday, Seller offers in writing to sell Buyer a vintage car
for $20,000, stating "this offer will remain open until Friday."
On Tuesday, Buyer calls Seller and says, "I'll give you
$18,000." Seller says nothing. On Wednesday, Buyer changes
his mind and calls Seller saying, "I accept your original offer
of $20,000." Is there a contract?
A) Yes, because the original offer was irrevocable until
Friday.
B) Yes, because Buyer's $18,000 proposal was not a rejection
but a mere inquiry.
**C)** No, because Buyer's $18,000 counteroffer terminated
the original offer.
D) No, because the offer was not in a signed writing.
,Correct Answer: C
Rationale: Under common law, a counteroffer operates as a
rejection of the original offer and terminates it. Buyer's
statement "I'll give you $18,000" is a counteroffer, not a
mere inquiry. The original offer was not an option contract (no
consideration given to keep it open), so Seller was free to
revoke or let it be terminated by counteroffer. Seller's
silence does not constitute acceptance of the counteroffer .
Question 2
A retailer advertises a new laptop for $299 in a newspaper
circular. The ad states "limited supply, first come first
served." A customer arrives at the store at opening time, but
the retailer has sold out. The customer sues for breach of
contract. What is the likely outcome?
A) The customer wins because advertisements are offers.
B) The customer wins because the ad specified "first come
first served."
C) The retailer wins because advertisements are generally
invitations to make an offer, not offers.
D) The retailer wins because the customer did not pay
consideration.
Correct Answer: C
,Rationale: Generally, advertisements are invitations to
bargain, not offers. An exception exists for ads that are
clear, definite, and leave nothing open for negotiation (e.g.,
reward offers). Here, the ad specified limited supply,
indicating it was not an offer to all but an invitation for
customers to make offers .
Question 3
A store publishes an advertisement in the local newspaper
stating that the first three customers on Saturday can buy a
specific model of luxury watch for $100, a significant
discount from its usual price of $1,000. If a customer arrives
as the first on Saturday and tenders $100 for the watch,
what is the legal status of the advertisement?
A) It is a bilateral offer that requires a promise in return.
B) It is a unilateral offer that becomes a contract when the
customer tenders the $100.
C) It is merely an invitation to make an offer.
D) It is not legally enforceable because it lacks consideration.
Correct Answer: B
Rationale: The advertisement specifies a clear action (being
one of the first three customers on Saturday) for a specific
, reward (buying the watch for $100), which constitutes a
unilateral offer that is accepted through performance .
Question 4
Seller offers to sell Buyer 100 shares of stock for
$50/share. Buyer responds, "I accept, but payment will be
made in 60 days." Seller does not respond. Is there a
contract?
A) Yes, because Buyer's response was a definite acceptance.
B) Yes, under the UCC because the additional term is not
material.
C) No, because Buyer's response added a term and thus is a
counteroffer at common law.
D) No, because the offer was not in writing.
Correct Answer: C
Rationale: Under the common law (applicable to stock sale, not
goods under UCC), the mirror image rule requires acceptance
to exactly match the offer. Any additional or different term
makes the response a counteroffer and rejects the original
offer. Here, adding a 60-day payment term is a counteroffer,
and Seller's silence is not acceptance .
