BLAW 3310 Final Exam with Questions and Answers
Question 1
[12]A bilateral contract is one in which:
a. A promise is given in return for an act.
b. A third party guarantees the promise of one of the parties.
c. Two promises are exchanged.
d. A unilateral contract accompanies an exchange of promises.
e. The contract is between two parties.
Correct Answer
c. Two promises are exchanged.
Question 2
[12]When the offeror dies before an offer has been accepted, the offer:
a. May be rejected by the surviving spouse of the offeror.
b. May be accepted by the surviving spouse of the offeror.
c. May be accepted by the guardian for any minor children of the offeror.
d. Is automatically terminated by the death of the offeror.
e. Is binding on the offeror's estate.
Correct Answer
d. Is automatically terminated by the death of the offeror.
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,Question 3
[12n]Bill prepared and signed a contract providing for the sale of his business with the provision that the closing would
have to occur no later than on December 31. Clay took the contract and signed it but changed the date of closing to on or
before January 1. Bill refused to perform the contract. Decide.
a. Bill wins because a variance in an acceptance constitutes a counter offer.
b. Bill wins because the seller can never be forced to perform.
c. Bill loses because the change of date really helps him.
d. Bill loses because the contract was written instead of oral.
e. Both a. and b. above.
Correct Answer
a. Bill wins because a variance in an acceptance constitutes a counter offer
Question 4
[12]A minor purchases a 2004 Toyota and pays $500 in cash with the balance of $8,000 payable in equal monthly
installments for 4 years. Two weeks later, he drives the car into a brick wall and totally wrecks it. In Texas, what could he
legally do?
a. Stop making payments and keep the car in hopes of getting it fixed later.
b. Return the demolished car to the seller and stop making payments. c. Sell the car to a junk dealer for $500 and stop
paying on the note. d. Any of the above.
e. None of the above.
Correct Answer
b. Return the demolished car to the seller and stop making payments.
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, Question 5
[12]In January Larry hires Moe to work for him for six months beginning the next September. The contract is made in
January. Does the Statute of Frauds apply?
a. Yes, because it is an employment contract.
b. Yes, because it is not performable in a year.
c. No, because it is performable in a year.
d. No, because it is not for the sale of real estate
e. No, because it is not performable in a year.
Correct Answer
b. Yes, because it is not performable in a year.
Question 6
[13]Jane hired Peacock to paint her house for $5,000. Peacock began painting and had partially completed the project
when he stopped work because the project was costing him more than he anticipated. It costs Jane $7,500 in reasonably
necessary expenses to hire another painter to finish her house. As a result, Peacock will:
a. Recover $2,500 for the value of his services.
b. Recover $5,000 for the original contract price.
c. Need to pay $7,500 in damages.
d. Need to pay $2,500 in damages.
e. Not have to pay anything.
Correct Answer
d. Need to pay $2,500 in damages.
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Question 1
[12]A bilateral contract is one in which:
a. A promise is given in return for an act.
b. A third party guarantees the promise of one of the parties.
c. Two promises are exchanged.
d. A unilateral contract accompanies an exchange of promises.
e. The contract is between two parties.
Correct Answer
c. Two promises are exchanged.
Question 2
[12]When the offeror dies before an offer has been accepted, the offer:
a. May be rejected by the surviving spouse of the offeror.
b. May be accepted by the surviving spouse of the offeror.
c. May be accepted by the guardian for any minor children of the offeror.
d. Is automatically terminated by the death of the offeror.
e. Is binding on the offeror's estate.
Correct Answer
d. Is automatically terminated by the death of the offeror.
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,Question 3
[12n]Bill prepared and signed a contract providing for the sale of his business with the provision that the closing would
have to occur no later than on December 31. Clay took the contract and signed it but changed the date of closing to on or
before January 1. Bill refused to perform the contract. Decide.
a. Bill wins because a variance in an acceptance constitutes a counter offer.
b. Bill wins because the seller can never be forced to perform.
c. Bill loses because the change of date really helps him.
d. Bill loses because the contract was written instead of oral.
e. Both a. and b. above.
Correct Answer
a. Bill wins because a variance in an acceptance constitutes a counter offer
Question 4
[12]A minor purchases a 2004 Toyota and pays $500 in cash with the balance of $8,000 payable in equal monthly
installments for 4 years. Two weeks later, he drives the car into a brick wall and totally wrecks it. In Texas, what could he
legally do?
a. Stop making payments and keep the car in hopes of getting it fixed later.
b. Return the demolished car to the seller and stop making payments. c. Sell the car to a junk dealer for $500 and stop
paying on the note. d. Any of the above.
e. None of the above.
Correct Answer
b. Return the demolished car to the seller and stop making payments.
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, Question 5
[12]In January Larry hires Moe to work for him for six months beginning the next September. The contract is made in
January. Does the Statute of Frauds apply?
a. Yes, because it is an employment contract.
b. Yes, because it is not performable in a year.
c. No, because it is performable in a year.
d. No, because it is not for the sale of real estate
e. No, because it is not performable in a year.
Correct Answer
b. Yes, because it is not performable in a year.
Question 6
[13]Jane hired Peacock to paint her house for $5,000. Peacock began painting and had partially completed the project
when he stopped work because the project was costing him more than he anticipated. It costs Jane $7,500 in reasonably
necessary expenses to hire another painter to finish her house. As a result, Peacock will:
a. Recover $2,500 for the value of his services.
b. Recover $5,000 for the original contract price.
c. Need to pay $7,500 in damages.
d. Need to pay $2,500 in damages.
e. Not have to pay anything.
Correct Answer
d. Need to pay $2,500 in damages.
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