BLAW Exam 2 – Business Law – 2026 – Study and Practice Guide
The essence of a contract is that it is a legally enforceable promise or set of promises. - correct
answer ✔✔ TRUE
Courts look at parties outward manifestations of intent as a requirement to enforce a contract.
This is called the subjective standard of intent. - correct answer ✔✔ FALSE
Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective
upon dispatch even if it uses means other than those specified in the offer. - correct answer ✔✔
FALSE
John promises to pay Robert $100 per week, in exchange for Robert's promise not to beat John
up. There is no consideration for John's promise. - correct answer ✔✔ TRUE
In order for a unilateral mistake to make a contract voidable, either the nonmistaken party must
have caused or had reason to know of the mistake, or enforcement of the contract must be
unconscionable. - correct answer ✔✔ TRUE
Generally, the age of majority for contracting purposes is 21 years. - correct answer ✔✔ FALSE
An exculpatory clause is a provision in a contract that purports to relieve one of the parties from
tort liability. - correct answer ✔✔ TRUE
In order to satisfy the writing requirement of the statute of frauds, both parties must sign the
writing. - correct answer ✔✔ FALSE
Antiassignment clauses in contracts are not enforceable. - correct answer ✔✔ FALSE
, When the surrounding facts and circumstances indicate that an agreement has in fact been
reached, a(n) _____ has been created. - correct answer ✔✔ implied contract
Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place
in 10 days. The contract between Calvin and Sara is now: - correct answer ✔✔ bilateral,
executory, and express.
When can the offeror effectively revoke his/her offer? - correct answer ✔✔ Only before an
effective acceptance.
A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated
time in exchange for some valuable consideration. - correct answer ✔✔ option
When is the revocation of an offer effective? - correct answer ✔✔ When received by the offeree
Offers that fail to provide a specific time for acceptance - correct answer ✔✔ are valid for a
reasonable period for time.
In general, the mailbox rule is beneficial to: - correct answer ✔✔ offeree
On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond
ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow."
Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is
delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract? -
correct answer ✔✔ Yes, because Trista dispatched the telegram prior to 2:00 p.m.
In order for the consideration requirement in contracts to be met: - correct answer ✔✔ each
party must give consideration.
The essence of a contract is that it is a legally enforceable promise or set of promises. - correct
answer ✔✔ TRUE
Courts look at parties outward manifestations of intent as a requirement to enforce a contract.
This is called the subjective standard of intent. - correct answer ✔✔ FALSE
Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective
upon dispatch even if it uses means other than those specified in the offer. - correct answer ✔✔
FALSE
John promises to pay Robert $100 per week, in exchange for Robert's promise not to beat John
up. There is no consideration for John's promise. - correct answer ✔✔ TRUE
In order for a unilateral mistake to make a contract voidable, either the nonmistaken party must
have caused or had reason to know of the mistake, or enforcement of the contract must be
unconscionable. - correct answer ✔✔ TRUE
Generally, the age of majority for contracting purposes is 21 years. - correct answer ✔✔ FALSE
An exculpatory clause is a provision in a contract that purports to relieve one of the parties from
tort liability. - correct answer ✔✔ TRUE
In order to satisfy the writing requirement of the statute of frauds, both parties must sign the
writing. - correct answer ✔✔ FALSE
Antiassignment clauses in contracts are not enforceable. - correct answer ✔✔ FALSE
, When the surrounding facts and circumstances indicate that an agreement has in fact been
reached, a(n) _____ has been created. - correct answer ✔✔ implied contract
Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place
in 10 days. The contract between Calvin and Sara is now: - correct answer ✔✔ bilateral,
executory, and express.
When can the offeror effectively revoke his/her offer? - correct answer ✔✔ Only before an
effective acceptance.
A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated
time in exchange for some valuable consideration. - correct answer ✔✔ option
When is the revocation of an offer effective? - correct answer ✔✔ When received by the offeree
Offers that fail to provide a specific time for acceptance - correct answer ✔✔ are valid for a
reasonable period for time.
In general, the mailbox rule is beneficial to: - correct answer ✔✔ offeree
On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond
ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow."
Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is
delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract? -
correct answer ✔✔ Yes, because Trista dispatched the telegram prior to 2:00 p.m.
In order for the consideration requirement in contracts to be met: - correct answer ✔✔ each
party must give consideration.
