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1. A business owner tells a web developer, "Create a website for my business,
and if it generates more traffic, I might sign a maintenance contract with
you." The developer creates the website, but the business owner decides
not to sign a maintenance contract. Is the developer entitled to the
maintenance contract?
a) The developer is entitled because they created the website as requested.
b) The developer is not entitled because the business owner's promise was
illusory.
c) The developer is entitled because the website generated more traffic.
d) The developer is not entitled because traffic is too vague a word. -
Correct Answer: The developer is not entitled because the business owner's
promise was illusory.
2. A tenant signs a lease agreement that includes a clause allowing the landlord to increase
rent with a 30-day notice. The landlord raises the rent without providing the required
notice. What is the most likely legal conclusion?
a) The rent increase is valid without notice.
b) The tenant must pay the increased rent immediately.
c) The rent increase is not enforceable without the notice.
d) The tenant can terminate the lease immediately. - Correct Answer: The
rent increase is not enforceable without the notice.
,3. A business contracts with a web designer to create a new website by a
specific date. The web designer fails to deliver the website on time,
resulting in lost sales for the business. What are the business's entitlements
under expectation damages?
a) A refund of any payments made to the web designer.
b) The cost of hiring another web designer to complete the work.
c) Damages for the lost sales directly resulting from the delay.
d) An apology from the web designer, posted to the website. - Correct
Answer: Damages for the lost sales directly resulting from the delay.
4. A wealthy community member promises to donate a piece of land to the
local school but later suffers business setbacks and wants to sell the land to
a farmer. Is the promise enforceable?
a) No, because the promise was a gratuitous promise.
b) Yes, because such a contract "runs with the land."
c) No, because farming is a valuable and pro-social use of the land.
d) No, because the business setbacks were unforeseeable. - Correct
Answer: No, because the promise was a gratuitous promise.
5. A homeowner promises a local artist that he will sponsor the artist's next
art exhibit if she dedicates it to the theme of community unity. The artist
creates the exhibit with the specified theme, but the homeowner
withdraws his sponsorship. Can the artist enforce the homeowner's
promise?
a) Yes, because the artist fulfilled the specified condition.
b) No, because the promise was a gratuitous promise.
c) Yes, because community unity is a universal theme.
d) No, because the homeowner received no legal benefit. - Correct
Answer: Yes, because the artist fulfilled the specified condition.
,6. A client tells a freelance designer, "I will pay you for any designs I feel like
buying, at rates I deem fair." The designer agrees. Is the designer's promise
enforceable?
a) Yes, because the client has promised to pay for the designs they like.
b) Yes, because the designer has agreed to work under these conditions.
c) No, because the client's promise is illusory
d) No, because the designer's agreement is based on an uncertain condition. -
Correct Answer: No, because the client's promise is illusory
7. A company executive tells a supplier, "We might order 100 units from you
next quarter if the market conditions are favorable." The supplier agrees to
this arrangement. Is this an enforceable contract?
a) Yes, because the executive expressed a clear intent to purchase.
b) No, because the executive's statement is not a definite promise.
c) Yes, because the supplier agreed to the terms.
d) No, because the market conditions are not specified. - Correct Answer:
No, because the executive's statement is not a definite promise.
8. A company sends an email to a supplier stating, "We intend to order 100
units of your product at the listed price, pending final approval from our
finance department." The supplier immediately starts production. The
company later decides not to proceed with the order. Based on the
objective theory of contracts, which of the following best describes the
situation?
a) A contract was formed because the supplier started production.
b) A contract was formed because the company expressed a clear intention to
order.
c) No contract was formed because the company's email was an invitation to
negotiate, not an offer.
, d) No contract was formed because there was no explicit acceptance from the
supplier. - Correct Answer: No contract was formed because the
company's email was an invitation to negotiate, not an offer.
9. A restaurant owner tells a local farmer that the restaurant wants to support
local and organic produce. The farmer obtains a special organic certification
at significant expense, but the restaurant owner purchases produce from a
different supplier. In this scenario, which key element for a promissory
estoppel claim is missing?
a) Unilateral.
b) Objective.
c) Reliance.
d) Promise. - Correct Answer: Promise.
10.A seller agrees to deliver goods to a buyer by a certain date. The seller
delivers the goods on time, but they are faulty, and the buyer has to
purchase replacement goods at a higher price from another supplier. What
can the buyer claim under expectation damages?
11.The difference in price between the original goods and the replacement
goods, plus compensation for the time spent finding another supplier.
a) A full refund from the seller.
b) Punitive damages for the inconvenience caused.
c) The seller must fix the goods so that they function properly. - Correct
Answer: The difference in price between the original goods and the
replacement goods, plus compensation for the time spent finding another
supplier.