MI Bar Contracts and Sales

Question 1

What is the mailbox rule in contract law?

Accepted Answer

An acceptance is effective when dispatched by the offeree, not when received by the offeror

Answer

Contracts must be mailed to be valid

Answer

An offer expires when placed in the mailbox

Answer

All contract communications must be in writing

Question 2

What is consideration in contract formation?

Accepted Answer

A bargained-for exchange of legal value between the parties

Answer

The physical contract document

Answer

The amount of money involved in the deal

Answer

A required waiting period before signing

Question 3

What is promissory estoppel?

Accepted Answer

A doctrine enforcing promises when a party reasonably relied on the promise to their detriment

Answer

A promise that was signed and notarized

Answer

A promise made in a courtroom

Answer

A requirement that all promises must be in writing

Question 4

What is the statute of frauds?

Accepted Answer

Certain contracts must be in writing to be enforceable, including land sales and contracts not performable within one year

Answer

All contracts must be in writing

Answer

Fraud automatically invalidates any contract

Answer

Only oral contracts are subject to fraud claims

Question 5

What is a material breach of contract?

Accepted Answer

A breach so substantial that it excuses the non-breaching party from further performance

Answer

Any minor deviation from the contract terms

Answer

A breach that occurs on a material (physical) object

Answer

A breach by a materials supplier

Question 6

What is specific performance as a contract remedy?

Accepted Answer

A court order requiring the breaching party to perform their contractual obligations

Answer

A monetary payment calculated at a specific rate

Answer

A performance evaluation of contract compliance

Answer

A penalty clause in the contract