JD NEXT EXAM | Latest Update 2026/2027 | 200 Practice
Questions & Detailed Answers | Law School Admissions Test
Prep | A+ Graded
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." Selle r 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
Answer: C
Explanation: 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.
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 serve d"
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
,Answer: C
Explanation: 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.
3. A 16yearold enters into a contract to buy a car from a dealer for $10,000. The minor pays $2,000
down and drives the car for 6 months. The minor then seeks to disaffirm the contract. What is the likely
outcome?
A) The minor cannot disaffirm because the car is a necessity
B) The minor can disaffirm but must return the car and is entitled to a full refund of the $2,000
C) The minor can disaffirm but may be subject to a deduction for depreciation
D) The minor cannot disaffirm because they used the car for 6 months
Answer: C
Explanation: Minors may disaffirm contracts. However, upon disaffirmance, many jurisdictions require
the minor to return any consideration still in their possession and may require the minor to pay for
depreciation or compensate the other party for the minor's use of the item.
4. 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 becomes a contract upon the customer's promise to pay
B) It is a unilateral offer that becomes a contract when the customer tenders the $100
C) It is an invitation to negotiate, not an offer
D) It is a void offer because the price is too low
Answer: B
Explanation: A unilateral offer is accepted by performance. Here, the advertisement promises to sell the
watch to the first three customers who perform by showing up and tendering the money. The
customer's tender of $100 constitutes acceptance by performance.
5. A homeowner offers a landscaping company a job to redesign their garden. The offer states, "This job
offer is accepted only if you promise to complete the work within 30 days." The landscaping company
responds, "We promise to complete the work within the specified time." This scenario exemplifies:
A) Acceptance by performance
B) Acceptance by promise
C) Acceptance by silence
D) Acceptance by conduct
Answer: B
Explanation: Acceptance by promise occurs when the offeree agrees to an offer by stating acceptance
through a verbal or written promise. Here, the landscaping company explicitly promised to complete the
work within 30 days, which constitutes acceptance by promise.
6. Which of the following best illustrates the objective theory of contracts?
, A) A party's secret intention to not be bound is considered
B) The parties' outward expressions of intent determine enforceability
C) Only written agreements are enforceable
D) Consideration is irrelevant if the parties agree
Answer: B
Explanation: The objective theory looks at external manifestations (words, conduct) rather than internal,
uncommunicated intentions. A party's secret, unexpressed intent is irrelevant.
7. A unilateral offer is distinguished from a bilateral offer because the unilateral offer:
A) Requires a promise in exchange for performance
B) Is revocable at any time, even after acceptance
C) Is accepted by performance, not a promise
D) Creates an immediate contractual duty upon receipt
Answer: C
Explanation: Unilateral offers are accepted by the offeree's actual performance, whereas bilateral offers
are accepted by a promise.
8. A company promises an employee a bonus at the end of the year for achieving certain performance
targets. The employee meets these targets, but the company refuses to pay the bonus. This situation
likely represents:
Questions & Detailed Answers | Law School Admissions Test
Prep | A+ Graded
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." Selle r 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
Answer: C
Explanation: 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.
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 serve d"
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
,Answer: C
Explanation: 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.
3. A 16yearold enters into a contract to buy a car from a dealer for $10,000. The minor pays $2,000
down and drives the car for 6 months. The minor then seeks to disaffirm the contract. What is the likely
outcome?
A) The minor cannot disaffirm because the car is a necessity
B) The minor can disaffirm but must return the car and is entitled to a full refund of the $2,000
C) The minor can disaffirm but may be subject to a deduction for depreciation
D) The minor cannot disaffirm because they used the car for 6 months
Answer: C
Explanation: Minors may disaffirm contracts. However, upon disaffirmance, many jurisdictions require
the minor to return any consideration still in their possession and may require the minor to pay for
depreciation or compensate the other party for the minor's use of the item.
4. 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 becomes a contract upon the customer's promise to pay
B) It is a unilateral offer that becomes a contract when the customer tenders the $100
C) It is an invitation to negotiate, not an offer
D) It is a void offer because the price is too low
Answer: B
Explanation: A unilateral offer is accepted by performance. Here, the advertisement promises to sell the
watch to the first three customers who perform by showing up and tendering the money. The
customer's tender of $100 constitutes acceptance by performance.
5. A homeowner offers a landscaping company a job to redesign their garden. The offer states, "This job
offer is accepted only if you promise to complete the work within 30 days." The landscaping company
responds, "We promise to complete the work within the specified time." This scenario exemplifies:
A) Acceptance by performance
B) Acceptance by promise
C) Acceptance by silence
D) Acceptance by conduct
Answer: B
Explanation: Acceptance by promise occurs when the offeree agrees to an offer by stating acceptance
through a verbal or written promise. Here, the landscaping company explicitly promised to complete the
work within 30 days, which constitutes acceptance by promise.
6. Which of the following best illustrates the objective theory of contracts?
, A) A party's secret intention to not be bound is considered
B) The parties' outward expressions of intent determine enforceability
C) Only written agreements are enforceable
D) Consideration is irrelevant if the parties agree
Answer: B
Explanation: The objective theory looks at external manifestations (words, conduct) rather than internal,
uncommunicated intentions. A party's secret, unexpressed intent is irrelevant.
7. A unilateral offer is distinguished from a bilateral offer because the unilateral offer:
A) Requires a promise in exchange for performance
B) Is revocable at any time, even after acceptance
C) Is accepted by performance, not a promise
D) Creates an immediate contractual duty upon receipt
Answer: C
Explanation: Unilateral offers are accepted by the offeree's actual performance, whereas bilateral offers
are accepted by a promise.
8. A company promises an employee a bonus at the end of the year for achieving certain performance
targets. The employee meets these targets, but the company refuses to pay the bonus. This situation
likely represents:
