Contracts Midterm Multiple Choice –
Levit Exam with Complete Solutions
In response to an advertisement that he saw in the newspaper, the
homeowner telephoned the contractor and asked him to come to the
homeowner's home to estimate the cost of providing and installing new
aluminum screens for all the homeowner's windows. After taking
measurements, the contractor returned to his shop and prepared a written
estimate, in which he said that he would do the entire job for $350. When
the homeowner received the contractor's written estimate, he wrote across
it with a red felt-tipped pen, "I'll pay $300, but not a penny more," and
mailed it to the contractor. When the contractor received the estimate with
the homeowner's statement written on it, he wrote on the estimate, "I'll do it
for $325." He sent the estimate back to the homeowner on September 5,
but on September 12, having received no response, he sent the
homeowner a note that said, "All right, you win. I'll do the job for $300.
Unless I - ✔✔(D) No contractual relationship existed between the
homeowner and the contractor.
,Antonio owns several expensive paintings. On August 1, a burglar breaks
into his home and steals his most prized painting. On August 2, Antonio
publicly offers a reward of $10,000 to the person who provides information
that leads to the return of the painting. On August 3, Bruno, a detective,
calls Antonio and says, "I accept your offer. I promise to put all of my efforts
into getting your painting returned." Bruno spent a substantial amount of
time trying to locate the painting, but was unsuccessful. On August 20,
Christina, an art dealer, contacted Antonio and provided information about
someone who tried to sell the painting to her. The police were able to use
the information that Christina provided to capture the criminal and return
the painting to Antonio on August 20.
Which of the following statements is correct?
(A) A bilateral contract formed between Antonio and Bruno
(B) A unilateral contract formed betwee - ✔✔(B) A unilateral contract
formed between Antonio and Christina
Book Club sends three recently published novels to Camila. All three
novels are on the list of "best sellers." The letter accompanying the
packages states that Alison may purchase the books for only $20, which is
30% below the retail price. The letter also states, "If you do not want the
,books, then please return the books within five days and you will not owe
us anything. If we do not receive the books within five days, then we will
consider the books to have been purchased and we will bill you for $20."
Book Club did not include return postage. Camila does not respond to Book
Club within five days. Instead, Camila puts the three novels on her
bookshelf unread, so that she can return the books if Book Club sends
return postage.
Has a contract formed between Book Club and Camila?
(A) Yes, because it was reasonable for Book Club to expect that Camila
would understand that silence is acceptance
(B) Yes, because Cam - ✔✔(D) No, unless Book Club can show that there
are prior dealings with Camila that justify Book Club in thinking that her
silence would be acceptance.
Cleaner ran a cleaning service and ran advertisements in the local media
stating, "I will clean any space that is 2,000 square feet or less for $250 no
matter how dirty it is. Call now to accept this offer." The advertisement
provided contact information for Cleaner. Owner owns an office building,
and each floor measured exactly 2,000 square feet. Owner called Cleaner's
, phone number but got voicemail. Owner left the following message, "I
accept your offer. If you can start cleaning tonight by 9:00pm and finish by
tomorrow morning at 7:00am, I will pay you $300 per floor to clean each of
the floors in my building." Owner provided the necessary details such as
the building address and combination needed to unlock the doors. Owner
then ended the voicemail saying, "You need not call back. Just show up
and start working. I will pay." Cleaner received the voicemail and went to
Owner's building that evening before 9:00pm, u - ✔✔(B) Cleaner, because
Owner's offer provides for acceptance by performance.
Distributor is a food wholesaler whose customers are dining
establishments. Restaurant sends a signed email to Distributor requesting
a price quote for wild caught Alaskan salmon. Distributor is limiting the
amount it sells to any individual customer, due to a recent shortage of
salmon, and it replies to Restaurant that Distributor would sell up to 500
pounds of wild caught Alaskan salmon to Restaurant at the price of $10 a
pound. The email listed various payment and delivery terms. Distributor's
email ends with the statement: "This offer will be held open for 45 days
after which it expires." Distributor signed the email. Twenty days later
Restaurant emailed Distributor a signed purchase order for 1,000 pounds
of wild caught Alaskan salmon at $10 a pound. The purchase order
Levit Exam with Complete Solutions
In response to an advertisement that he saw in the newspaper, the
homeowner telephoned the contractor and asked him to come to the
homeowner's home to estimate the cost of providing and installing new
aluminum screens for all the homeowner's windows. After taking
measurements, the contractor returned to his shop and prepared a written
estimate, in which he said that he would do the entire job for $350. When
the homeowner received the contractor's written estimate, he wrote across
it with a red felt-tipped pen, "I'll pay $300, but not a penny more," and
mailed it to the contractor. When the contractor received the estimate with
the homeowner's statement written on it, he wrote on the estimate, "I'll do it
for $325." He sent the estimate back to the homeowner on September 5,
but on September 12, having received no response, he sent the
homeowner a note that said, "All right, you win. I'll do the job for $300.
Unless I - ✔✔(D) No contractual relationship existed between the
homeowner and the contractor.
,Antonio owns several expensive paintings. On August 1, a burglar breaks
into his home and steals his most prized painting. On August 2, Antonio
publicly offers a reward of $10,000 to the person who provides information
that leads to the return of the painting. On August 3, Bruno, a detective,
calls Antonio and says, "I accept your offer. I promise to put all of my efforts
into getting your painting returned." Bruno spent a substantial amount of
time trying to locate the painting, but was unsuccessful. On August 20,
Christina, an art dealer, contacted Antonio and provided information about
someone who tried to sell the painting to her. The police were able to use
the information that Christina provided to capture the criminal and return
the painting to Antonio on August 20.
Which of the following statements is correct?
(A) A bilateral contract formed between Antonio and Bruno
(B) A unilateral contract formed betwee - ✔✔(B) A unilateral contract
formed between Antonio and Christina
Book Club sends three recently published novels to Camila. All three
novels are on the list of "best sellers." The letter accompanying the
packages states that Alison may purchase the books for only $20, which is
30% below the retail price. The letter also states, "If you do not want the
,books, then please return the books within five days and you will not owe
us anything. If we do not receive the books within five days, then we will
consider the books to have been purchased and we will bill you for $20."
Book Club did not include return postage. Camila does not respond to Book
Club within five days. Instead, Camila puts the three novels on her
bookshelf unread, so that she can return the books if Book Club sends
return postage.
Has a contract formed between Book Club and Camila?
(A) Yes, because it was reasonable for Book Club to expect that Camila
would understand that silence is acceptance
(B) Yes, because Cam - ✔✔(D) No, unless Book Club can show that there
are prior dealings with Camila that justify Book Club in thinking that her
silence would be acceptance.
Cleaner ran a cleaning service and ran advertisements in the local media
stating, "I will clean any space that is 2,000 square feet or less for $250 no
matter how dirty it is. Call now to accept this offer." The advertisement
provided contact information for Cleaner. Owner owns an office building,
and each floor measured exactly 2,000 square feet. Owner called Cleaner's
, phone number but got voicemail. Owner left the following message, "I
accept your offer. If you can start cleaning tonight by 9:00pm and finish by
tomorrow morning at 7:00am, I will pay you $300 per floor to clean each of
the floors in my building." Owner provided the necessary details such as
the building address and combination needed to unlock the doors. Owner
then ended the voicemail saying, "You need not call back. Just show up
and start working. I will pay." Cleaner received the voicemail and went to
Owner's building that evening before 9:00pm, u - ✔✔(B) Cleaner, because
Owner's offer provides for acceptance by performance.
Distributor is a food wholesaler whose customers are dining
establishments. Restaurant sends a signed email to Distributor requesting
a price quote for wild caught Alaskan salmon. Distributor is limiting the
amount it sells to any individual customer, due to a recent shortage of
salmon, and it replies to Restaurant that Distributor would sell up to 500
pounds of wild caught Alaskan salmon to Restaurant at the price of $10 a
pound. The email listed various payment and delivery terms. Distributor's
email ends with the statement: "This offer will be held open for 45 days
after which it expires." Distributor signed the email. Twenty days later
Restaurant emailed Distributor a signed purchase order for 1,000 pounds
of wild caught Alaskan salmon at $10 a pound. The purchase order
