Practice Exam Questions
Under the mirror image rule, an acceptance cannot impose any new terms or conditions that were not contained in the offer.
True
False
True
Timmy, a financial analyst, calls his best friend Allen, a self-employed lawyer, asking to go golfing on Wednesday instead of going to work. Timmy promises to pay for golf so Allen agrees and declines to meet with a prospective client on Wednesday. Just before tee time, however, Timmy cancels due to an emergency involving an important client. Due to Timmy’s cancellation, Allen has missed a day of work and the meeting with the prospective client. Allen then sues Timmy for his lost wages. Who wins?
A. Timmy, because of the unforeseen difficulties rule
B. Timmy, because the social nature of this agreement makes it legally unenforceable
C. Allen, based on promissory estoppel
D. Allen, because he was induced by Timmy’s promise to go golfing which he wasn’t otherwise obligated to do.
B
Mike puts up his car for sale in an auction with reserve and with notice of the seller’s right to reject bids. David bids $5,000, which is the highest bid. The hammer falls, but five minutes later Mike receives a bid from Norman for $6,000. Mike sells his car to Norman for $6,000. Was Mike contractually obligated to sell his car to David for $5,000?
A. Yes, putting up his car constituted as an offer and David’s bid was an acceptance.
B. Yes, Mike cannot reject David’s offer after the hammer falls.
C. No, Norman accepted Mike’s offer with the highest bid of $6,000.
D. No, Mike can reject David’s offer after the hammer falls.
D
Teller was interested in a large antique desk displayed in Penn’s furniture store. Penn orally offered to sell the desk to Teller for $3,000, and said he would take the desk off the showroom floor until Friday. If Teller did not accept by Friday, Penn would put the desk back up for sale. Teller went to the store on Thursday to buy the desk, but was told it had been sold to another customer. Can Teller sue Penn for breach of contract?
A. No, Penn’s promise to keep the offer open until Friday did not unjustly enrich Teller
B. No, Penn’s promise to keep the offer open until Friday was not in a signed writing
C. Yes, because Penn made a firm offer
D. Yes, because Teller detrimentally relied on Penn’s offer
B
8. Eleanor Coal signed a contract with Franklin Energy in which Franklin agreed to buy 100,000 tons of coal delivered in 10 equal shipments as long as Franklin approved of the quality of the coal. Franklin was free to reject any shipment it wished by simply stating it did not approve of the coal. Is the contract enforceable?
A. Yes, because the contract is for a sale of goods.
B. Yes, because the mirror image rule does not apply.
C. No, because the pre-existing duty rule applies.
D. No, because the contract is illusory.
D