JD-NEXT PRACTICE EXAM | LAW QUESTIONS, ANSWERS & RATIONALES | PASS
YOUR LAW SCHOOL EXIT EXAM OR BAR READINESS TEST FIRST TRY 300
VERIFIED QUESTIONS WITH DETAILED ANSWERS & RATIONALES
2026 EDITION
SECTION 1: CONTRACTS – FORMATION, OFFER, ACCEPTANCE & CONSIDERATION
(Qs 1-50)
Q1. 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.
Answer: C
Rationale: 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 because no
consideration was given to keep it open, so Seller was free to let it be
terminated by the counteroffer. Seller's silence does not constitute acceptance
of the counteroffer.
Q2. 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.
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,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, such as reward offers. Here, the ad specified limited supply,
indicating it was not an offer to all but an invitation for customers to make
offers.
Q3. A 16-year-old 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 6 months is an unreasonable time.
Answer: B
Rationale: Minors may disaffirm contracts at any time before reaching majority or
within a reasonable time thereafter. Upon disaffirmance, the minor must return
any consideration still in their possession, but is entitled to a full refund of
money paid, even if the goods have depreciated. Many states allow a deduction
for use value, but the traditional default rule is a full refund.
Q4. A company promises an employee a bonus at the end of the year for not
using
any sick days. The employee does not use any sick days but the company refuses
to
pay the bonus. This scenario illustrates:
A) Lack of consideration.
B) Adequate consideration.
C) Illusory promise.
D) Preexisting duty.
Answer: B
Rationale: The employee's action of not using any sick days is a legal detriment,
2
,and the company's promise of a bonus is a legal benefit, constituting adequate
consideration. The employee gave up a legal right, which is sufficient.
Q5. Which of the following is NOT required for a valid contract?
A) Offer
B) Acceptance
C) Consideration
D) Written form
Answer: D
Rationale: While certain contracts must be in writing under the Statute of
Frauds, not all contracts must be written. A valid contract requires offer,
acceptance, and consideration (or a substitute like promissory estoppel). Oral
contracts are generally enforceable unless they fall within specific statutory
exceptions.
Q6. Under the common law, which rule governs the acceptance of an offer?
A) The mirror image rule
B) The battle of the forms rule
C) The substantial performance rule
D) The commercial reasonableness rule
Answer: A
Rationale: Under common law, the mirror image rule requires that acceptance
must
be precisely on the same terms as the offer. Any variation is treated as a
counteroffer and rejection. The UCC has relaxed this rule for the sale of goods.
Q7. Under the UCC, what is the "battle of the forms"?
A) A dispute over which party's form terms control when forms do not match.
B) A dispute over contract formation.
C) A dispute over consideration.
D) A dispute over capacity.
Answer: A
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, Rationale: The "battle of the forms" refers to disputes where merchants exchange
different standard forms with conflicting terms. The UCC provides that additional
or different terms may become part of the contract unless they materially alter
it or are objected to.
Q8. What is the mailbox rule?
A) An acceptance is effective upon dispatch.
B) An acceptance is effective upon receipt.
C) A revocation is effective upon dispatch.
D) An offer is effective upon dispatch.
Answer: A
Rationale: The mailbox rule provides that an acceptance is effective upon
dispatch, not upon receipt, unless the offer provides otherwise. This rule
applies to acceptances, not to revocations or rejections, which are effective
upon receipt.
Q9. An option contract is:
A) A contract where the offeror promises to keep an offer open in exchange for
consideration.
B) A contract where the offeree has a choice to accept or reject.
C) A contract that is optional for both parties.
D) A contract that cannot be enforced.
Answer: A
Rationale: An option contract is created when the offeror gives consideration in
exchange for a promise to keep the offer open for a specified period. Without
consideration, an offer is generally revocable at any time before acceptance.
Q10. A unilateral contract is one that:
A) Is accepted by a return promise.
B) Is accepted by performance.
C) Is accepted by silence.
D) Is accepted by a counteroffer.
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YOUR LAW SCHOOL EXIT EXAM OR BAR READINESS TEST FIRST TRY 300
VERIFIED QUESTIONS WITH DETAILED ANSWERS & RATIONALES
2026 EDITION
SECTION 1: CONTRACTS – FORMATION, OFFER, ACCEPTANCE & CONSIDERATION
(Qs 1-50)
Q1. 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.
Answer: C
Rationale: 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 because no
consideration was given to keep it open, so Seller was free to let it be
terminated by the counteroffer. Seller's silence does not constitute acceptance
of the counteroffer.
Q2. 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.
1
,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, such as reward offers. Here, the ad specified limited supply,
indicating it was not an offer to all but an invitation for customers to make
offers.
Q3. A 16-year-old 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 6 months is an unreasonable time.
Answer: B
Rationale: Minors may disaffirm contracts at any time before reaching majority or
within a reasonable time thereafter. Upon disaffirmance, the minor must return
any consideration still in their possession, but is entitled to a full refund of
money paid, even if the goods have depreciated. Many states allow a deduction
for use value, but the traditional default rule is a full refund.
Q4. A company promises an employee a bonus at the end of the year for not
using
any sick days. The employee does not use any sick days but the company refuses
to
pay the bonus. This scenario illustrates:
A) Lack of consideration.
B) Adequate consideration.
C) Illusory promise.
D) Preexisting duty.
Answer: B
Rationale: The employee's action of not using any sick days is a legal detriment,
2
,and the company's promise of a bonus is a legal benefit, constituting adequate
consideration. The employee gave up a legal right, which is sufficient.
Q5. Which of the following is NOT required for a valid contract?
A) Offer
B) Acceptance
C) Consideration
D) Written form
Answer: D
Rationale: While certain contracts must be in writing under the Statute of
Frauds, not all contracts must be written. A valid contract requires offer,
acceptance, and consideration (or a substitute like promissory estoppel). Oral
contracts are generally enforceable unless they fall within specific statutory
exceptions.
Q6. Under the common law, which rule governs the acceptance of an offer?
A) The mirror image rule
B) The battle of the forms rule
C) The substantial performance rule
D) The commercial reasonableness rule
Answer: A
Rationale: Under common law, the mirror image rule requires that acceptance
must
be precisely on the same terms as the offer. Any variation is treated as a
counteroffer and rejection. The UCC has relaxed this rule for the sale of goods.
Q7. Under the UCC, what is the "battle of the forms"?
A) A dispute over which party's form terms control when forms do not match.
B) A dispute over contract formation.
C) A dispute over consideration.
D) A dispute over capacity.
Answer: A
3
, Rationale: The "battle of the forms" refers to disputes where merchants exchange
different standard forms with conflicting terms. The UCC provides that additional
or different terms may become part of the contract unless they materially alter
it or are objected to.
Q8. What is the mailbox rule?
A) An acceptance is effective upon dispatch.
B) An acceptance is effective upon receipt.
C) A revocation is effective upon dispatch.
D) An offer is effective upon dispatch.
Answer: A
Rationale: The mailbox rule provides that an acceptance is effective upon
dispatch, not upon receipt, unless the offer provides otherwise. This rule
applies to acceptances, not to revocations or rejections, which are effective
upon receipt.
Q9. An option contract is:
A) A contract where the offeror promises to keep an offer open in exchange for
consideration.
B) A contract where the offeree has a choice to accept or reject.
C) A contract that is optional for both parties.
D) A contract that cannot be enforced.
Answer: A
Rationale: An option contract is created when the offeror gives consideration in
exchange for a promise to keep the offer open for a specified period. Without
consideration, an offer is generally revocable at any time before acceptance.
Q10. A unilateral contract is one that:
A) Is accepted by a return promise.
B) Is accepted by performance.
C) Is accepted by silence.
D) Is accepted by a counteroffer.
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