CONTRACT LAW FINAL EXAM PAPER
2026 COMPLETE QUESTIONS AND
SOLUTIONS VERIFIED 100% CORRECT
⩥ 3 factors of the predominant purpose test. Answer: (1) language of the
K, (2) the nature of the business of the supplier and (3) the intrinsic
worth of the materials. [language of K is least important factor]
⩥ Mutual Assent. Answer: [did they intend for their agreement to have
legal, binding effect]: for a contract to be formed, the parties must both
intend to contract, and they must agree on at least the main terms of the
deal.
⩥ subjective theory of contracts and mutual assent. Answer: meeting of
the minds that looks at actual intention of the party rather than the
party's conduct
⩥ objective theory of contracts and mutual assent. Answer: a party's
intentions are measured by what a reasonable person in the position of
the other party would have thought the first party intended based on their
conduct and statements.
⩥ Offer. Answer: the manifestation of willingness to enter into a bargain,
which justifies another person in understanding that his assent can
,conclude the bargain. An offer is something that creates the power of
acceptance.
⩥ Preliminary Negotiation. Answer: A party desiring to reach a contract
may make a statement which is not an offer but rather a solicitation of an
offer with the other party
Such statements cannot be accepted
exchanging communications of a more or less detailed nature about the
type of exchange of performances to which each would be willing to
agree
⩥ RST2§26:. Answer: a manifestation of willingness to enter into a
bargain is not an offer if the person to whom it is addressed knows or
has reason to know that the person making the manifestation does not
intend to conclude a bargain until the maker has made a further
manifestation of intent.
⩥ RST2§26(b) on advertisements. Answer: in newspapers, magazines,
etc. are not offers but merely invitations for an offer. To make an offer
by advertisement there must ordinarily be some language of
commitment or some invitation to take action without further
communication.
,⩥ How to make an advertisement an offer. Answer: definite, specified
number/quantity, "first come first serve". Look at variables in pyramid.
⩥ exceptions to advertisement as not an offer. Answer: (1) if there is a
particular number of units to sell or they will be sold in a particular
manner, there may be an offer. Lefkowitz v. Great Minneapolis Surplus
Store: Mink coat case
(2) If an offer is conveyed by the objective reading of an advertisement,
it does not matter that the advertiser may subjectively not intended it to
constitute a binding offer (Izadi)
(3) Unilateral advertisements have been held to constitute offers where
they invite the performance of a specific act without further
communication and leave nothing for negotiation. [Sateriale v.
Reynolds]
⩥ Price Quotes. Answer: It is a frequent business practice for one person
to request a 'quote' from another.
Price Quote is typically an invitation to the buyer to submit an offer
[prelim. negotiation]
, Sometimes, a price quote could be an offer if there is a clear quantity,
addressed to a particular person, and is called the offer. However, if it
reserves to the proposer the power to close the deal, it is not an offer.
⩥ Seller Response to an Inquiry. Answer: If a seller responds to an
inquiry from a customer about whether the seller has a particular
quantity of items for delivery at a particular time, the seller's response
with details of what she has for sale is likely to contain enough to be an
offer.
⩥ Offers Made in Jest. Answer: An offer which the offeree knows or
should know is made in jest is not a valid offer. Thus, even if it is
accepted, no k is created. (Lucy v. Zehmer)
⩥ RST1§45. Answer: provides protection to the offeree against
revocation of an offer to enter into a unilateral contract when the offeree
has relied on the offer by beginning the requested performance [Cook v.
Caldwell banker]
⩥ Baird v. Gimbel Bros. [sub old rule]. Answer: promissory estoppel
could not apply, because there was no binding promise of an irrevocable
offer and there was no consideration for such a promise. Nor was court
willing to treat subs bid as an option
2026 COMPLETE QUESTIONS AND
SOLUTIONS VERIFIED 100% CORRECT
⩥ 3 factors of the predominant purpose test. Answer: (1) language of the
K, (2) the nature of the business of the supplier and (3) the intrinsic
worth of the materials. [language of K is least important factor]
⩥ Mutual Assent. Answer: [did they intend for their agreement to have
legal, binding effect]: for a contract to be formed, the parties must both
intend to contract, and they must agree on at least the main terms of the
deal.
⩥ subjective theory of contracts and mutual assent. Answer: meeting of
the minds that looks at actual intention of the party rather than the
party's conduct
⩥ objective theory of contracts and mutual assent. Answer: a party's
intentions are measured by what a reasonable person in the position of
the other party would have thought the first party intended based on their
conduct and statements.
⩥ Offer. Answer: the manifestation of willingness to enter into a bargain,
which justifies another person in understanding that his assent can
,conclude the bargain. An offer is something that creates the power of
acceptance.
⩥ Preliminary Negotiation. Answer: A party desiring to reach a contract
may make a statement which is not an offer but rather a solicitation of an
offer with the other party
Such statements cannot be accepted
exchanging communications of a more or less detailed nature about the
type of exchange of performances to which each would be willing to
agree
⩥ RST2§26:. Answer: a manifestation of willingness to enter into a
bargain is not an offer if the person to whom it is addressed knows or
has reason to know that the person making the manifestation does not
intend to conclude a bargain until the maker has made a further
manifestation of intent.
⩥ RST2§26(b) on advertisements. Answer: in newspapers, magazines,
etc. are not offers but merely invitations for an offer. To make an offer
by advertisement there must ordinarily be some language of
commitment or some invitation to take action without further
communication.
,⩥ How to make an advertisement an offer. Answer: definite, specified
number/quantity, "first come first serve". Look at variables in pyramid.
⩥ exceptions to advertisement as not an offer. Answer: (1) if there is a
particular number of units to sell or they will be sold in a particular
manner, there may be an offer. Lefkowitz v. Great Minneapolis Surplus
Store: Mink coat case
(2) If an offer is conveyed by the objective reading of an advertisement,
it does not matter that the advertiser may subjectively not intended it to
constitute a binding offer (Izadi)
(3) Unilateral advertisements have been held to constitute offers where
they invite the performance of a specific act without further
communication and leave nothing for negotiation. [Sateriale v.
Reynolds]
⩥ Price Quotes. Answer: It is a frequent business practice for one person
to request a 'quote' from another.
Price Quote is typically an invitation to the buyer to submit an offer
[prelim. negotiation]
, Sometimes, a price quote could be an offer if there is a clear quantity,
addressed to a particular person, and is called the offer. However, if it
reserves to the proposer the power to close the deal, it is not an offer.
⩥ Seller Response to an Inquiry. Answer: If a seller responds to an
inquiry from a customer about whether the seller has a particular
quantity of items for delivery at a particular time, the seller's response
with details of what she has for sale is likely to contain enough to be an
offer.
⩥ Offers Made in Jest. Answer: An offer which the offeree knows or
should know is made in jest is not a valid offer. Thus, even if it is
accepted, no k is created. (Lucy v. Zehmer)
⩥ RST1§45. Answer: provides protection to the offeree against
revocation of an offer to enter into a unilateral contract when the offeree
has relied on the offer by beginning the requested performance [Cook v.
Caldwell banker]
⩥ Baird v. Gimbel Bros. [sub old rule]. Answer: promissory estoppel
could not apply, because there was no binding promise of an irrevocable
offer and there was no consideration for such a promise. Nor was court
willing to treat subs bid as an option
