MBE 35 Contracts Questions and
Answers Latest Version Already Passed
A contract is formed when:
A. The offeror accepts the terms
B. Both parties sign the agreement
✔✔C. There is a mutual agreement and consideration
D. One party gives something of value
Which of the following is an example of an enforceable contract?
✔✔A. A promise supported by mutual consideration
B. A promise without any exchange of value
C. A contract entered into under duress
D. An agreement made between family members
An offer can be revoked:
✔✔A. Any time before acceptance, unless an option contract is in place
B. Only after a reasonable period has passed
C. After acceptance but before performance
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,D. After the offeror dies
A contract will not be enforceable if:
A. The contract is written
✔✔B. One of the parties was under duress when agreeing to the contract
C. The terms are ambiguous but agreed upon
D. The contract is for a legal purpose
Which of the following is **not** a requirement for the formation of a contract?
✔✔A. A written agreement
B. Offer
C. Acceptance
D. Consideration
A promise made in exchange for another promise is called:
A. A gift promise
✔✔B. A bilateral contract
C. An option contract
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,D. A unilateral contract
In order for a contract to be enforceable, the consideration must:
A. Be adequate and equal for both parties
✔✔B. Have legal value (something of value exchanged)
C. Be paid in full before performance
D. Be substantial and unreasonable
If one party fails to perform their contractual obligation, this is called:
A. A breach
✔✔B. A material breach
C. A discharge
D. A condition precedent
Which of the following is true regarding an offer?
A. An offer cannot be revoked once made
✔✔B. An offer can be revoked before acceptance unless consideration was given for an option
C. An offer automatically becomes a contract upon being made
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, D. An offer is valid until rejected
A contract is voidable when:
A. It has no consideration
B. The terms are uncertain
✔✔C. One of the parties lacked capacity to contract
D. Both parties are unwilling to perform
If a contract contains a condition precedent, performance is required:
✔✔A. Only if the condition occurs
B. Immediately after the contract is signed
C. Before the contract is signed
D. Regardless of the condition
Which of the following would **not** be considered valid consideration?
✔✔A. A promise to do something the party is already legally obligated to do
B. A promise to deliver goods
C. A promise to pay money
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Answers Latest Version Already Passed
A contract is formed when:
A. The offeror accepts the terms
B. Both parties sign the agreement
✔✔C. There is a mutual agreement and consideration
D. One party gives something of value
Which of the following is an example of an enforceable contract?
✔✔A. A promise supported by mutual consideration
B. A promise without any exchange of value
C. A contract entered into under duress
D. An agreement made between family members
An offer can be revoked:
✔✔A. Any time before acceptance, unless an option contract is in place
B. Only after a reasonable period has passed
C. After acceptance but before performance
1
,D. After the offeror dies
A contract will not be enforceable if:
A. The contract is written
✔✔B. One of the parties was under duress when agreeing to the contract
C. The terms are ambiguous but agreed upon
D. The contract is for a legal purpose
Which of the following is **not** a requirement for the formation of a contract?
✔✔A. A written agreement
B. Offer
C. Acceptance
D. Consideration
A promise made in exchange for another promise is called:
A. A gift promise
✔✔B. A bilateral contract
C. An option contract
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,D. A unilateral contract
In order for a contract to be enforceable, the consideration must:
A. Be adequate and equal for both parties
✔✔B. Have legal value (something of value exchanged)
C. Be paid in full before performance
D. Be substantial and unreasonable
If one party fails to perform their contractual obligation, this is called:
A. A breach
✔✔B. A material breach
C. A discharge
D. A condition precedent
Which of the following is true regarding an offer?
A. An offer cannot be revoked once made
✔✔B. An offer can be revoked before acceptance unless consideration was given for an option
C. An offer automatically becomes a contract upon being made
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, D. An offer is valid until rejected
A contract is voidable when:
A. It has no consideration
B. The terms are uncertain
✔✔C. One of the parties lacked capacity to contract
D. Both parties are unwilling to perform
If a contract contains a condition precedent, performance is required:
✔✔A. Only if the condition occurs
B. Immediately after the contract is signed
C. Before the contract is signed
D. Regardless of the condition
Which of the following would **not** be considered valid consideration?
✔✔A. A promise to do something the party is already legally obligated to do
B. A promise to deliver goods
C. A promise to pay money
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