MBE FLASHCARDS EXAM QUESTIONS AND ANSWERS LATEST
UPDATE 2023/2024 ALL ANSWERS CORRECT VERIFIED BEST
GRADED A+ FOR SUCCESS
Whether a party intends to enter into a contract is judged by ________________________. -
CORRECT ANSWERS Outward objective facts, as interpreted by a reasonable person
An offer is ___________________. - CORRECT ANSWERS An objective manifestation of a
willingness by the offeror to enter into an agreement that creates the power of acceptance in the
offeree.
What are the essential terms of a contract at common law? - CORRECT ANSWERS Parties
Subject matter
Price
Quantity
What are the essential terms of a contract under the UCC? - CORRECT ANSWERS Subject matter
and quantity (unless the contract is a requirements or output contract)
What happens if an employment contract does not specify its duration? - CORRECT ANSWERS
There is a rebuttable presumption that the employment is "at will."
What if an ongoing contract doesn't specify its duration? - CORRECT ANSWERS Court will imply that
the contract will last for a reasonable period of time.
What terms are subject to the UCC's gap-filling provisions? - CORRECT ANSWERS Duration
(reasonable)
Place for delivery (the seller's place of business)
,Time of payment (when the buyer is to receive the goods)
Assortment of goods (reasonable choice of the buyer)
Price (reasonable price at time of delivery)
An offer must contain words of _________, not merely words that ___________. - CORRECT
ANSWERS Promise, undertaking, commitment
Indicate an intention to sell or interest in buying
Are advertisements generally considered offers? - CORRECT ANSWERS No, they are considered
invitations to deal unless the ad is sufficiently specific and limiting as to who may accept (e.g., first
come, first served).
In what ways can offers be terminated? - CORRECT ANSWERS Lapse of time
Death or mental incapacity
Destruction of illegality
Revocation (express or constructive)
When is a revocation of an offer effective? - CORRECT ANSWERS When communicated.
When is an offeror's power to revoke limited? - CORRECT ANSWERS Option
UCC firm offer rule
What is the UCC firm offer rule? - CORRECT ANSWERS Under the UCC, an offer to buy goods is
irrevocable if:
The offeror is a merchant
There is an assurance that the offer is to remain open
The assurance is contained in a signed writing from the offeror
*No consideration needed*
,How does the UCC define a "merchant"? - CORRECT ANSWERS A person who regularly deals in the
type of goods involved in the transaction or otherwise by his occupation holds himself out as having
knowledge or skill peculiar to the practices or goods involved
-And-
Any businessperson when the transaction is of a commercial nature
Can a general offer be revoked even if a potential offeree does not learn of the revocation and acts in
reliance on the offer? - CORRECT ANSWERS Yes, so long as the offeror gives notice at the same level
of publicity as the offer.
Does rejection terminate an offer? - CORRECT ANSWERS Yeah boi
What is an acceptance? - CORRECT ANSWERS An objective manifestation by the offeree to be
bound by the terms of the offer.
What is a unilateral contract? - CORRECT ANSWERS A contract in which one party promises to do
something in return for an act of the other party.
How can one accept an offer to enter into a unilateral contract? - CORRECT ANSWERS Only by
complete performance in response to the offer.
Once performance has begun, the offer is irrevocable for a reasonable period of time to allow for
complete performance, but the offeree is not bound to complete performance.
If there is doubt as to whether an offer must be accepted by performance or a return promise, which
forms of acceptance are effective? - CORRECT ANSWERS Either form of acceptance.
When can silence constitute acceptance of an offer? - CORRECT ANSWERS When the offeree has
reason to believe that the offer could be accepted by silence, and he was silent with the intent to
accept the offer by silence
or
, Because of previous dealings of patterns of behavior, it is reasonable to believe that the offeree must
notify the offeror if the offeree intends not to accept
Is a shipment of nonconforming goods an acceptance? - CORRECT ANSWERS You bet! It is both an
acceptance and a breach.
If, however, the seller "seasonably" notifies the buyer that the goods are nonconforming, shipment
of the those goods is not an acceptance, and the accommodation is deemed a counteroffer.
When is a mailed acceptance effective? - CORRECT ANSWERS When sent, unless the offer provides
otherwise.
What happens when an offeree sends an acceptance and then sends a rejection? - CORRECT
ANSWERS The acceptance will generally control even if the offeror receives the rejection first.
Under the UCC firm offer rule, how long is an option held open if the time period is not stated? -
CORRECT ANSWERS A reasonable time. The offer cannot be held open for more than 90 days, unless
the offeree gives consideration to validate it beyond that 90-day period.
In what circumstances is an offer irrevocable? - CORRECT ANSWERS 1) Option (w/ separate
consideration)
2) UCC firm offer rule
3) Promissory Estoppel
4) Partial performance (unilateral contracts)
When is a unilateral contract formed? - CORRECT ANSWERS When performance is complete. The
offeree must have knowledge of the offer before commencing performance.
How does commencement of performance impact a bilateral contract? - CORRECT ANSWERS It
constitutes a promise to render complete performance.
How can an offeror revoke a general offer? - CORRECT ANSWERS By notice that is given at least at
the same level of publicity as the offer, even if the offeree does not have actual notice of the
revocation and acts in reliance on the offer.
UPDATE 2023/2024 ALL ANSWERS CORRECT VERIFIED BEST
GRADED A+ FOR SUCCESS
Whether a party intends to enter into a contract is judged by ________________________. -
CORRECT ANSWERS Outward objective facts, as interpreted by a reasonable person
An offer is ___________________. - CORRECT ANSWERS An objective manifestation of a
willingness by the offeror to enter into an agreement that creates the power of acceptance in the
offeree.
What are the essential terms of a contract at common law? - CORRECT ANSWERS Parties
Subject matter
Price
Quantity
What are the essential terms of a contract under the UCC? - CORRECT ANSWERS Subject matter
and quantity (unless the contract is a requirements or output contract)
What happens if an employment contract does not specify its duration? - CORRECT ANSWERS
There is a rebuttable presumption that the employment is "at will."
What if an ongoing contract doesn't specify its duration? - CORRECT ANSWERS Court will imply that
the contract will last for a reasonable period of time.
What terms are subject to the UCC's gap-filling provisions? - CORRECT ANSWERS Duration
(reasonable)
Place for delivery (the seller's place of business)
,Time of payment (when the buyer is to receive the goods)
Assortment of goods (reasonable choice of the buyer)
Price (reasonable price at time of delivery)
An offer must contain words of _________, not merely words that ___________. - CORRECT
ANSWERS Promise, undertaking, commitment
Indicate an intention to sell or interest in buying
Are advertisements generally considered offers? - CORRECT ANSWERS No, they are considered
invitations to deal unless the ad is sufficiently specific and limiting as to who may accept (e.g., first
come, first served).
In what ways can offers be terminated? - CORRECT ANSWERS Lapse of time
Death or mental incapacity
Destruction of illegality
Revocation (express or constructive)
When is a revocation of an offer effective? - CORRECT ANSWERS When communicated.
When is an offeror's power to revoke limited? - CORRECT ANSWERS Option
UCC firm offer rule
What is the UCC firm offer rule? - CORRECT ANSWERS Under the UCC, an offer to buy goods is
irrevocable if:
The offeror is a merchant
There is an assurance that the offer is to remain open
The assurance is contained in a signed writing from the offeror
*No consideration needed*
,How does the UCC define a "merchant"? - CORRECT ANSWERS A person who regularly deals in the
type of goods involved in the transaction or otherwise by his occupation holds himself out as having
knowledge or skill peculiar to the practices or goods involved
-And-
Any businessperson when the transaction is of a commercial nature
Can a general offer be revoked even if a potential offeree does not learn of the revocation and acts in
reliance on the offer? - CORRECT ANSWERS Yes, so long as the offeror gives notice at the same level
of publicity as the offer.
Does rejection terminate an offer? - CORRECT ANSWERS Yeah boi
What is an acceptance? - CORRECT ANSWERS An objective manifestation by the offeree to be
bound by the terms of the offer.
What is a unilateral contract? - CORRECT ANSWERS A contract in which one party promises to do
something in return for an act of the other party.
How can one accept an offer to enter into a unilateral contract? - CORRECT ANSWERS Only by
complete performance in response to the offer.
Once performance has begun, the offer is irrevocable for a reasonable period of time to allow for
complete performance, but the offeree is not bound to complete performance.
If there is doubt as to whether an offer must be accepted by performance or a return promise, which
forms of acceptance are effective? - CORRECT ANSWERS Either form of acceptance.
When can silence constitute acceptance of an offer? - CORRECT ANSWERS When the offeree has
reason to believe that the offer could be accepted by silence, and he was silent with the intent to
accept the offer by silence
or
, Because of previous dealings of patterns of behavior, it is reasonable to believe that the offeree must
notify the offeror if the offeree intends not to accept
Is a shipment of nonconforming goods an acceptance? - CORRECT ANSWERS You bet! It is both an
acceptance and a breach.
If, however, the seller "seasonably" notifies the buyer that the goods are nonconforming, shipment
of the those goods is not an acceptance, and the accommodation is deemed a counteroffer.
When is a mailed acceptance effective? - CORRECT ANSWERS When sent, unless the offer provides
otherwise.
What happens when an offeree sends an acceptance and then sends a rejection? - CORRECT
ANSWERS The acceptance will generally control even if the offeror receives the rejection first.
Under the UCC firm offer rule, how long is an option held open if the time period is not stated? -
CORRECT ANSWERS A reasonable time. The offer cannot be held open for more than 90 days, unless
the offeree gives consideration to validate it beyond that 90-day period.
In what circumstances is an offer irrevocable? - CORRECT ANSWERS 1) Option (w/ separate
consideration)
2) UCC firm offer rule
3) Promissory Estoppel
4) Partial performance (unilateral contracts)
When is a unilateral contract formed? - CORRECT ANSWERS When performance is complete. The
offeree must have knowledge of the offer before commencing performance.
How does commencement of performance impact a bilateral contract? - CORRECT ANSWERS It
constitutes a promise to render complete performance.
How can an offeror revoke a general offer? - CORRECT ANSWERS By notice that is given at least at
the same level of publicity as the offer, even if the offeree does not have actual notice of the
revocation and acts in reliance on the offer.
