Clemson – Schulze 2026 Exam
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Key Elements of a Contract - ANSWER ✔✔Offer, Acceptance,
Consideration, Contractual (Mental), Capacity, Legality, Genuine
Consent
Promise to do something or refrain from doing something. - ANSWER
✔✔Offer
an offer must show _______ by the offeror to enter in a contract -
ANSWER ✔✔intent
person making the offer - ANSWER ✔✔offeror
,an offer must express clear & specific ______ of the agreement (not too
vague) - ANSWER ✔✔terms
an offer must show proper __________ of the offer to the offeree -
ANSWER ✔✔communication
party to whom the offer is made - ANSWER ✔✔offeree
Is an offer to "conduct a business for as long as it is profitable" valid? -
ANSWER ✔✔no
Is an offer to "conduct a business so long as its books and records show
a 10% increase in company equity over company debt over the course
of 365 days" valid? - ANSWER ✔✔yes
advertisements are generally not offers, but instead, are invitations to
________
Ex: Ad reads: "Come in this weekend to our grand opening! We have
lots of cars for sale under $10K!" If a potential buyer goes to the car lot
and finds no car under $10K, the dealership is not obligated to sell a car
for that price. - ANSWER ✔✔negotiate
However, the more _________ an advertisement is, the more likely it is
not an advertisement, but an actual offer. - ANSWER ✔✔specific
,Ex: Advertisement that reads: Come in this Saturday to Furs and Purrs!
We will sell three mink coats (valued at $1,000) for $500 each. Doors
open at 9AM. First come, first served.
Martha, a customer, stands outside the door of Furs and Purrs that
Saturday at 6AM and is the first customer when the doors open.
However, when she asks about the sale minks she is told that it was just
an advertisement and there aren't any sale minks available. She files a
lawsuit against Furs and Purrs for breach of contract when they won't
sell her a mink for $500. Will she likely win? - ANSWER ✔✔Yes
because the offer was very specific.
Withdrawal (revoke the offer): Offer can be revoked ________ accepted.
Revocation must be communicated to the offeree. - ANSWER
✔✔before
Offer open for a specified period of time. During that time period, the
offer cannot be withdrawn. - ANSWER ✔✔option contract
Ex: Offer put on a house for $225,000. Offer states that it is good for 24
hours. Buyer must keep the offer available for 24 hours. - ANSWER
✔✔option contract
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
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, Offeree rejects the offer when she ignores the original offer and presents
a different offer. - ANSWER ✔✔counteroffer
When an offer states it is open until a particular time or date, the offer
terminates on that time or date if it has not yet been accepted. Any offer
presented after the expired time has *no effect* and gives no rise to a
contract. - ANSWER ✔✔lapse of time
Ex: A lists his house for $150,000. B offers $140,000. Instead of A
accepting her offer, he ______________s with $145,000. B must now
decide to accept, reject or offer another ____________. (all same blank)
- ANSWER ✔✔counteroffer
Ex: A lists his house for $150,000. B offers $140,000 with a stipulation
that the offer is only good for 24 hours. If A does not accept her offer
within that time frame, B's offer terminates after 24 hours passes. Now it
is too late for A to accept. - ANSWER ✔✔lapse of time
If either the offeror or offeree dies or becomes mentally incompetent
before the offer is accepted, the offer terminates. - ANSWER
✔✔death/disability of party
If performance of the contract illegal after offer is made, the offer
terminates - ANSWER ✔✔subsequent illegality