11.Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it
accepts before 10 A.M. Monday. A contract is formed if Shopping Stores' acceptance is
A. any time on Monday.
B. before 10 A.M. Monday.
C. before 11 A.M. Monday.
D. within twenty-four hours of 10 A.M. Monday.
12. Quality Steel Corporation files a suit against Rite Tool Company, claiming that the
consideration for their contract is inadequate. The court will most likely not examine the
adequacy of the consideration if
A. it is obvious that the consideration is adequate.
B. Rite Tool asserts that there is adequate consideration.
C. something of value passed between the parties.
D. the consideration is worth more than $100
13. Quix Fix-It, Inc., offers Polly a job as a plumber. No time for acceptance is specified
in the offer. The offer will terminate
A. after a reasonable period of time.
B. after a typical work week (five business days).
C. after a usual month (thirty calendar days).
14. On Tad's 18th birthday, he decides that he no longer wants to keep a car he bought
from U-Pick Autos, Inc., when he was 17. His right to disaffirm the deal will depend on
A. the car's condition when Tad bought it.
B. the car's current condition.
C. whether Tad acts within a reasonable period of time.
D. whether U-Pick has the right to disaffirm.
15. National Insurance Company violates a statute when selling an insurance policy to
Opal. The policy may be enforced by
A. National Insurance only.
B. National Insurance or Opal.
C. no one.
D. Opal only.
16. While a minor, Jason buys a car that he continues to use and keep in repair after
reaching the age of majority. Jason has
A. disaffirmed the contract.
B. ratified the contract.
C. rejected the contract.
D. rescinded the contract.
17.Joy induces Kelly to enter into a contract for the purchase of a condominium about
which Joy knowingly misrepresents a number of material features. When Kelly discovers
the truth, Kelly can
A. enforce the contract and seek damages.
B. enforce the contract but not seek damages.
C. neither enforce the contract nor seek damages.
D. seek damages but not enforce the contract.
18. Musical Production Company and Nora enter into a contract that calls for Nora to
write six songs for which Musical agrees to pay her. Nora transfers her right to payment
under the contract to Omni Entertainment Agency. Nora is
A. a delegator.
B. an assignor.
C. a payor
D. a righter
19.Rural Development Corporation (RDC) and Sid enter into a contract for the clear-
cutting of RDC’s 50-acre tract for which RDC agrees to pay Sid. Sid transfers his duty to
log the tract under the contract to Timber Logging Company. Timber is
A. a delegatee.
B. an assignee.
C. an obligee.
D. a prohibitee.
20. A zoning law that affects the lease will cause its termination. Union City's zoning
board adopts a new zoning classification that affects the lease. This adoption satisfies
A. no condition.
B. the condition precedent.
C. the concurrent condition.
D. the condition subsequent.