CLA/CP Exam CLA/CP Contract Law and Formation Questions and Answers 2

Question 1

Which of the following is required for a valid acceptance of an offer under common law?

Accepted Answer

Mirror image of the offer terms

Answer

Substantial similarity to the offer

Answer

A written acknowledgment

Answer

Consideration from a third party

Question 2

Under the mailbox rule, when does an acceptance become effective?

Accepted Answer

When properly dispatched by the offeree

Answer

When received by the offeror

Answer

When the offeror reads it

Answer

When both parties sign the contract

Question 3

What is the primary distinction between a bilateral and a unilateral contract?

Accepted Answer

Bilateral involves exchange of promises; unilateral requires performance to accept

Answer

Bilateral requires writing; unilateral does not

Answer

Bilateral is enforceable; unilateral is not

Answer

Bilateral involves two parties; unilateral involves one

Question 4

Which doctrine prevents a party from retracting a promise when the other party has reasonably relied on it to their detriment?

Accepted Answer

Promissory estoppel

Answer

Laches

Answer

Undue influence

Answer

Mutual mistake

Question 5

An advertisement in a newspaper is generally considered which of the following?

Accepted Answer

An invitation to negotiate, not an offer

Answer

A binding unilateral offer

Answer

A firm offer under the UCC

Answer

An option contract

Question 6

What effect does a counteroffer have on the original offer?

Accepted Answer

It terminates the original offer

Answer

It modifies the original offer

Answer

It extends the original offer's deadline

Answer

It has no effect on the original offer