BLAW 341 Exam 2- Maull
BLAW 341 Exam 2- Maull
BLAW 341 Exam 2- Maull
BLAW 341 Exam 2- Maull
Mostly Accurate Tested Relevant Coverage Areas (10 Numbered List):
1. Four Elements of a Valid Contract (Agreement, Consideration, Capacity,
Legality) 2 4
2. Bilateral vs. Unilateral Contracts (Promise for Promise vs. Promise for Act) 2
4
3. Objective Theory of Contracts (Intent judged by outward facts, not hidden
intent) 4 5
4. Offer and Acceptance Rules (Mirror Image Rule, Mailbox Rule, Silence as
Acceptance) 6
5. Defenses to Enforceability (Voluntary Consent, Statute of Frauds/Form) 2 4
6. Quasi Contract / Quantum Meruit (Unjust enrichment prevention) 2 13
7. Contract Interpretation (Plain Meaning Rule, Ambiguity, Extrinsic Evidence) 2
8. Third-Party Rights (Assignment, Delegation, Third-Party Beneficiaries) 3
, 9. Contract Discharge & Breach (Conditions, Material Breach, Anticipatory
Repudiation) 2
10. International Contract Clauses (Choice of Language, Forum Selection, Force
Majeure) 3
BLAW 341 Exam 2- Maull
1. Under the objective theory of contracts, which of the following factors is
primarily used to determine whether a party intended to enter into a binding
agreement?
☐ A. The secret, unexpressed subjective beliefs held by the party at the time of
signing.
☐ B. The outward manifestations of intent as interpreted by a reasonable person.
☐ C. The financial net worth of the party making the offer to determine
seriousness.
☐ D. The verbal statements made only after the contract has been fully
performed.
Correct Answer: ☑ B
Rationale: The objective theory of contracts holds that parties are bound by their
outward expressions and actions, not their hidden subjective intentions, as judged
by a reasonable person standard . 4 5
,2. Which of the following scenarios best describes a unilateral contract that is
formed only upon the completion of a specific performance?
☐ A. Sarah promises to pay Tom $500 if he promises to paint her house next
week.
☐ B. Sarah promises to pay Tom $500 if he actually paints her house by Friday.
☐ C. Sarah and Tom sign a written agreement detailing the paint colors to be
used.
☐ D. Sarah offers to sell Tom her paint brushes for $50, and Tom mails a check.
Correct Answer: ☑ B
Rationale: A unilateral contract is a promise for an act; the contract is not formed
at the moment of promise but rather when the requested performance is
completed . 2 4
3. If a contract is deemed void, which of the following statements accurately
reflects the legal status of the agreement between the parties?
☐ A. The contract is valid but one party has the option to cancel it at any time.
☐ B. The contract is enforceable only if both parties agree to rewrite the terms.
☐ C. No party has any legal obligation because the contract has no legal effect.
☐ D. The contract is valid unless a court specifically declares it unenforceable.
, Correct Answer: ☑ C
Rationale: A void contract is one that has no legal force or binding effect from the
outset, meaning neither party has any legal obligations under it . 2 13
4. In the case of Pan Handle Realty, LLC v. Olins, what was the primary legal
basis for the court holding the defendant liable for breach of contract?
☐ A. The defendant had signed a written lease and stopped making payments
despite intent.
☐ B. The defendant orally promised to rent but never signed any documentation.
☐ C. The defendant was a minor who lacked the capacity to enter into the lease.
☐ D. The defendant proved that the property was uninhabitable due to defects.
Correct Answer: ☑ A
Rationale: The court enforced the signed lease agreement, holding the defendant
liable for rent and fees because his outward act of signing indicated intent,
regardless of later claims of changed intent . 4 5
5. Which of the following is considered a defense to the enforceability of a
contract based on the absence of voluntary consent?
☐ A. The contract was required to be in writing but was only agreed to orally.
☐ B. One party was a minor at the time of entering into the agreement.
☐ C. The contract was formed as a result of fraud, mistake, or duress.
BLAW 341 Exam 2- Maull
BLAW 341 Exam 2- Maull
BLAW 341 Exam 2- Maull
Mostly Accurate Tested Relevant Coverage Areas (10 Numbered List):
1. Four Elements of a Valid Contract (Agreement, Consideration, Capacity,
Legality) 2 4
2. Bilateral vs. Unilateral Contracts (Promise for Promise vs. Promise for Act) 2
4
3. Objective Theory of Contracts (Intent judged by outward facts, not hidden
intent) 4 5
4. Offer and Acceptance Rules (Mirror Image Rule, Mailbox Rule, Silence as
Acceptance) 6
5. Defenses to Enforceability (Voluntary Consent, Statute of Frauds/Form) 2 4
6. Quasi Contract / Quantum Meruit (Unjust enrichment prevention) 2 13
7. Contract Interpretation (Plain Meaning Rule, Ambiguity, Extrinsic Evidence) 2
8. Third-Party Rights (Assignment, Delegation, Third-Party Beneficiaries) 3
, 9. Contract Discharge & Breach (Conditions, Material Breach, Anticipatory
Repudiation) 2
10. International Contract Clauses (Choice of Language, Forum Selection, Force
Majeure) 3
BLAW 341 Exam 2- Maull
1. Under the objective theory of contracts, which of the following factors is
primarily used to determine whether a party intended to enter into a binding
agreement?
☐ A. The secret, unexpressed subjective beliefs held by the party at the time of
signing.
☐ B. The outward manifestations of intent as interpreted by a reasonable person.
☐ C. The financial net worth of the party making the offer to determine
seriousness.
☐ D. The verbal statements made only after the contract has been fully
performed.
Correct Answer: ☑ B
Rationale: The objective theory of contracts holds that parties are bound by their
outward expressions and actions, not their hidden subjective intentions, as judged
by a reasonable person standard . 4 5
,2. Which of the following scenarios best describes a unilateral contract that is
formed only upon the completion of a specific performance?
☐ A. Sarah promises to pay Tom $500 if he promises to paint her house next
week.
☐ B. Sarah promises to pay Tom $500 if he actually paints her house by Friday.
☐ C. Sarah and Tom sign a written agreement detailing the paint colors to be
used.
☐ D. Sarah offers to sell Tom her paint brushes for $50, and Tom mails a check.
Correct Answer: ☑ B
Rationale: A unilateral contract is a promise for an act; the contract is not formed
at the moment of promise but rather when the requested performance is
completed . 2 4
3. If a contract is deemed void, which of the following statements accurately
reflects the legal status of the agreement between the parties?
☐ A. The contract is valid but one party has the option to cancel it at any time.
☐ B. The contract is enforceable only if both parties agree to rewrite the terms.
☐ C. No party has any legal obligation because the contract has no legal effect.
☐ D. The contract is valid unless a court specifically declares it unenforceable.
, Correct Answer: ☑ C
Rationale: A void contract is one that has no legal force or binding effect from the
outset, meaning neither party has any legal obligations under it . 2 13
4. In the case of Pan Handle Realty, LLC v. Olins, what was the primary legal
basis for the court holding the defendant liable for breach of contract?
☐ A. The defendant had signed a written lease and stopped making payments
despite intent.
☐ B. The defendant orally promised to rent but never signed any documentation.
☐ C. The defendant was a minor who lacked the capacity to enter into the lease.
☐ D. The defendant proved that the property was uninhabitable due to defects.
Correct Answer: ☑ A
Rationale: The court enforced the signed lease agreement, holding the defendant
liable for rent and fees because his outward act of signing indicated intent,
regardless of later claims of changed intent . 4 5
5. Which of the following is considered a defense to the enforceability of a
contract based on the absence of voluntary consent?
☐ A. The contract was required to be in writing but was only agreed to orally.
☐ B. One party was a minor at the time of entering into the agreement.
☐ C. The contract was formed as a result of fraud, mistake, or duress.
