Contracts Multiple Choice Questions With Complete
Solutions
A brother told his sister that he was bored at his job and wanted
to fund a business venture with her. The sister was thrilled,
because she had been out of work for a long time and wanted to
earn some money. She spent several months looking into
business opportunities in her free time, at which point the
brother told her that he had changed his mind and decided not to
fund any venture with the sister.
If the sister wishes to bring an action against the brother, which
theory of recovery, if any, would be most advisable for the sister
to pursue?
(A) Breach of an enforceable unilateral contract.
(B) Breach of an enforceable bilateral contract.
(C) Promissory estoppel.
(D) No theory of recovery is likely to be successful, because a
promise to make a gift is not enforceable in these circumstances.
Correct Answers (D) No theory of recovery is likely to be
successful, because a promise to make a gift is not enforceable
in these circumstances.
A business signed a contract to purchase a piece of industrial
equipment from a manufacturer for $10,000. The contract
contained a clause stating that the business had the right to
return the equipment for a partial refund but did not specify a
deadline for return. The business was not satisfied with the
equipment and tried to return it for a partial refund on the
thirtieth of the month, but the manufacturer refused to accept it.
,The business sued the manufacturer. The manufacturer sought to
introduce evidence at trial that it had orally agreed with the
business at the time of sale that the deadline for return of the
equipment was the twentieth of the month.
What best describes the nature of the contract between the
business and the manufacturer, and the admissibility of the
manufacturer's evidence?
(A) The contract is partially integrated, and the evidence is
admissible to supplement the terms of the contract.
(B) Correct Answers (A) The contract is partially integrated,
and the evidence is admissible to supplement the terms of the
contract.
A buyer sent a contract in the mail for a seller to sign and return.
On day 1, the seller signed the contract. On day 2, the seller
placed the contract in an envelope and mailed it. The seller
accidentally transposed two numbers in the buyer's address on
the envelope. On day 3, the seller performed her end of the
contract by shipping the goods described in the contract to the
buyer. On day 4, the postal worker who was delivering the letter
saw the buyer's name on the envelope, realized that the address
was in error, and delivered the letter to the correct address.
On which day did the seller accept the buyer's offer?
(A) On day 1, when she signed the contract.
(B) On day 2, when she mailed the contract.
(C) On day 3, when she performed her end of the contract.
,(D) On day 4, when the buyer received the contract. Correct
Answers (B) On day 2, when she mailed the contract.
A client hired an attorney to handle a business dispute. The
signed contract between the client and the attorney stated that
the attorney would earn a flat rate of $5,000 and that the client
would also be responsible for miscellaneous costs such as filing
fees, copying, and postage. After the attorney resolved the case,
he sent the client an invoice for $5,000 in attorney's fees and
$600 for miscellaneous costs. The client disputed the bill. The
client sought to introduce two pieces of evidence: First, when
the client was signing the contract, the attorney orally promised
him that miscellaneous costs would be assessed only if the
matter proceeded to trial, which it did not. Second, after the
attorney had resolved the case, he sent an email telling the client
he was giving a $2,000 discount because the case resolved much
faster than anticipated.
Assuming that the client's contract with the lawyer was a
completely int Correct Answers (C) Only the attorney's promise
of a discount.
A college student wanted to join her friends on a spring break
trip but could not afford it. She told her uncle about the trip, and
he said that he would pay for it as a graduation gift. In reliance
on this promise, the student went on the trip, charging all
expenses on her credit card. Upon her graduation, however, the
uncle refused to give the student any money.
, If the student wishes to bring an action against the uncle, which
theory of recovery, if any, would be most advisable for the
student to pursue?
(A) Breach of an enforceable contract.
(B) Promissory estoppel.
(C) No theory of recovery is likely to be successful, because a
promise to make a gift is not enforceable in these circumstances.
(D) No theory of recovery is likely to be successful, because the
vacation was a benefit, not a detriment, to the student. Correct
Answers (B) Promissory estoppel.
A company offered a woman a job contract. The contract
specified the woman's duties, salary, benefits, holidays, start
date, and other material terms. The woman responded to the
company by saying that she accepted its offer but wanted one
extra week of vacation time per year.
Has the woman accepted the company's offer?
(A) Yes, because the request for an extra week of vacation time
will be treated as a proposal for an addition to the contract, not a
counteroffer.
(B) Yes, because the extra week of vacation time is not an
essential term of the contract.
(C) No, because the extra week of vacation time materially
alters the contract.
(D) No, because the request for an extra week of vacation time
will be treated as a counteroffer, not an acceptance. Correct
Answers (D) No, because the request for an extra week of
Solutions
A brother told his sister that he was bored at his job and wanted
to fund a business venture with her. The sister was thrilled,
because she had been out of work for a long time and wanted to
earn some money. She spent several months looking into
business opportunities in her free time, at which point the
brother told her that he had changed his mind and decided not to
fund any venture with the sister.
If the sister wishes to bring an action against the brother, which
theory of recovery, if any, would be most advisable for the sister
to pursue?
(A) Breach of an enforceable unilateral contract.
(B) Breach of an enforceable bilateral contract.
(C) Promissory estoppel.
(D) No theory of recovery is likely to be successful, because a
promise to make a gift is not enforceable in these circumstances.
Correct Answers (D) No theory of recovery is likely to be
successful, because a promise to make a gift is not enforceable
in these circumstances.
A business signed a contract to purchase a piece of industrial
equipment from a manufacturer for $10,000. The contract
contained a clause stating that the business had the right to
return the equipment for a partial refund but did not specify a
deadline for return. The business was not satisfied with the
equipment and tried to return it for a partial refund on the
thirtieth of the month, but the manufacturer refused to accept it.
,The business sued the manufacturer. The manufacturer sought to
introduce evidence at trial that it had orally agreed with the
business at the time of sale that the deadline for return of the
equipment was the twentieth of the month.
What best describes the nature of the contract between the
business and the manufacturer, and the admissibility of the
manufacturer's evidence?
(A) The contract is partially integrated, and the evidence is
admissible to supplement the terms of the contract.
(B) Correct Answers (A) The contract is partially integrated,
and the evidence is admissible to supplement the terms of the
contract.
A buyer sent a contract in the mail for a seller to sign and return.
On day 1, the seller signed the contract. On day 2, the seller
placed the contract in an envelope and mailed it. The seller
accidentally transposed two numbers in the buyer's address on
the envelope. On day 3, the seller performed her end of the
contract by shipping the goods described in the contract to the
buyer. On day 4, the postal worker who was delivering the letter
saw the buyer's name on the envelope, realized that the address
was in error, and delivered the letter to the correct address.
On which day did the seller accept the buyer's offer?
(A) On day 1, when she signed the contract.
(B) On day 2, when she mailed the contract.
(C) On day 3, when she performed her end of the contract.
,(D) On day 4, when the buyer received the contract. Correct
Answers (B) On day 2, when she mailed the contract.
A client hired an attorney to handle a business dispute. The
signed contract between the client and the attorney stated that
the attorney would earn a flat rate of $5,000 and that the client
would also be responsible for miscellaneous costs such as filing
fees, copying, and postage. After the attorney resolved the case,
he sent the client an invoice for $5,000 in attorney's fees and
$600 for miscellaneous costs. The client disputed the bill. The
client sought to introduce two pieces of evidence: First, when
the client was signing the contract, the attorney orally promised
him that miscellaneous costs would be assessed only if the
matter proceeded to trial, which it did not. Second, after the
attorney had resolved the case, he sent an email telling the client
he was giving a $2,000 discount because the case resolved much
faster than anticipated.
Assuming that the client's contract with the lawyer was a
completely int Correct Answers (C) Only the attorney's promise
of a discount.
A college student wanted to join her friends on a spring break
trip but could not afford it. She told her uncle about the trip, and
he said that he would pay for it as a graduation gift. In reliance
on this promise, the student went on the trip, charging all
expenses on her credit card. Upon her graduation, however, the
uncle refused to give the student any money.
, If the student wishes to bring an action against the uncle, which
theory of recovery, if any, would be most advisable for the
student to pursue?
(A) Breach of an enforceable contract.
(B) Promissory estoppel.
(C) No theory of recovery is likely to be successful, because a
promise to make a gift is not enforceable in these circumstances.
(D) No theory of recovery is likely to be successful, because the
vacation was a benefit, not a detriment, to the student. Correct
Answers (B) Promissory estoppel.
A company offered a woman a job contract. The contract
specified the woman's duties, salary, benefits, holidays, start
date, and other material terms. The woman responded to the
company by saying that she accepted its offer but wanted one
extra week of vacation time per year.
Has the woman accepted the company's offer?
(A) Yes, because the request for an extra week of vacation time
will be treated as a proposal for an addition to the contract, not a
counteroffer.
(B) Yes, because the extra week of vacation time is not an
essential term of the contract.
(C) No, because the extra week of vacation time materially
alters the contract.
(D) No, because the request for an extra week of vacation time
will be treated as a counteroffer, not an acceptance. Correct
Answers (D) No, because the request for an extra week of
