ACCT 215 Test 3 Questions With Solved
Solutions.
Which of the following is not listed by our textbook as a requirement for a legally enforceable contract? -
Answer Formal contract document
According to the textbook, which of the following was not a requirement under the common law for a
legally binding contractual offer? - Answer A signed writing
According to the textbook, an offer for which of the following types of contracts is accepted by complete
performance and not a return promise? - Answer Unilateral contract
According to the textbook, an offer for which of the following types of contracts is accepted by a return
promise? - Answer Bilateral contract
According to the textbook, which of the following may give rise to a legally binding offer if it limits the
quantity or number of individuals who may accept? - Answer Advertisement
Which of the following is a true statement regarding the difference between options contracts under the
common law and a firm offer under the UCC? - Answer A firm offer requires a merchant
Which of the following generally does not result in the termination of an offer to contract? - Answer
Inquiry
Assume Stanley and Mark negotiate for the sale of a used computer. Mark offers Stanley $500 for his
computer. Stanley says he needs time to think about it. That same night, Stanley sends a letter of
acceptance to Mark through the mail. The letter should be delivered by the next day at 2pm. The same
night Stanley sends a letter of acceptance, Mark sends a letter of revocation through the mail. The letter
of revocation is expected to arrive the next day at 4pm. Which of the following statements is true under
the common law? - Answer The letter of revocation is effective upon delivery to the recipient
Assume a merchant named Quicksell makes an offer to purchase wheel bearings from another merchant
named Fastprod. Quicksell offers Fastprod $25.50 per bearing with shipment to occur no later than
, January 5 with payment to be made by January 10. Fastprod accepts by sending an acknowledgement
letter and a sales invoice. The sales invoice states if payment is not made by January 10, a fee of 3% will
be added to the sales price. Under UCC Section 2-207, the additional term added by Fastprod - Answer
May become part of the agreement as long as it is immaterial
The outcome of which of the following cases depended upon the existence of a unilateral contract? -
Answer Carlill case
Which of the following court cases involved an issue arising because a party to the contract was a minor
at the time of contract formation? - Answer Lempke case
Under the common law, which of the following does not constitute acceptance of a contractual offer? -
Answer Promise to do that which one already has a duty to do
According to the textbook, which of the following requires consideration and good faith as well as a
writing? - Answer A release
According to the textbook, which of the following requires a dispute as to an amount owed? - Answer
Accord and satisfaction
In which of the cases would a contract be considered void?
A.Terrence is suffering from mental illness when entering into a contract
B.Terrence is suffering from mental illness when entering into a contract and was previously adjudicated
mentally incompetent
C.Terrance is intoxicated when he enters into the contract
D. Terrence was a minor when entering into a contract - Answer B.) Terrence is suffering from mental
illness when entering into a contract and was previously adjudicated mentally incompetent
Assume Hallie is a minor for purposes of contract law. She rents an apartment because her parents
cannot provide shelter for her. She pays rent for September, October and November. She decides to
vacate the apartment at the end of the month of September. Under the common law of contracts, which
of the following is true?
Solutions.
Which of the following is not listed by our textbook as a requirement for a legally enforceable contract? -
Answer Formal contract document
According to the textbook, which of the following was not a requirement under the common law for a
legally binding contractual offer? - Answer A signed writing
According to the textbook, an offer for which of the following types of contracts is accepted by complete
performance and not a return promise? - Answer Unilateral contract
According to the textbook, an offer for which of the following types of contracts is accepted by a return
promise? - Answer Bilateral contract
According to the textbook, which of the following may give rise to a legally binding offer if it limits the
quantity or number of individuals who may accept? - Answer Advertisement
Which of the following is a true statement regarding the difference between options contracts under the
common law and a firm offer under the UCC? - Answer A firm offer requires a merchant
Which of the following generally does not result in the termination of an offer to contract? - Answer
Inquiry
Assume Stanley and Mark negotiate for the sale of a used computer. Mark offers Stanley $500 for his
computer. Stanley says he needs time to think about it. That same night, Stanley sends a letter of
acceptance to Mark through the mail. The letter should be delivered by the next day at 2pm. The same
night Stanley sends a letter of acceptance, Mark sends a letter of revocation through the mail. The letter
of revocation is expected to arrive the next day at 4pm. Which of the following statements is true under
the common law? - Answer The letter of revocation is effective upon delivery to the recipient
Assume a merchant named Quicksell makes an offer to purchase wheel bearings from another merchant
named Fastprod. Quicksell offers Fastprod $25.50 per bearing with shipment to occur no later than
, January 5 with payment to be made by January 10. Fastprod accepts by sending an acknowledgement
letter and a sales invoice. The sales invoice states if payment is not made by January 10, a fee of 3% will
be added to the sales price. Under UCC Section 2-207, the additional term added by Fastprod - Answer
May become part of the agreement as long as it is immaterial
The outcome of which of the following cases depended upon the existence of a unilateral contract? -
Answer Carlill case
Which of the following court cases involved an issue arising because a party to the contract was a minor
at the time of contract formation? - Answer Lempke case
Under the common law, which of the following does not constitute acceptance of a contractual offer? -
Answer Promise to do that which one already has a duty to do
According to the textbook, which of the following requires consideration and good faith as well as a
writing? - Answer A release
According to the textbook, which of the following requires a dispute as to an amount owed? - Answer
Accord and satisfaction
In which of the cases would a contract be considered void?
A.Terrence is suffering from mental illness when entering into a contract
B.Terrence is suffering from mental illness when entering into a contract and was previously adjudicated
mentally incompetent
C.Terrance is intoxicated when he enters into the contract
D. Terrence was a minor when entering into a contract - Answer B.) Terrence is suffering from mental
illness when entering into a contract and was previously adjudicated mentally incompetent
Assume Hallie is a minor for purposes of contract law. She rents an apartment because her parents
cannot provide shelter for her. She pays rent for September, October and November. She decides to
vacate the apartment at the end of the month of September. Under the common law of contracts, which
of the following is true?
