LGS 200 ABIGAIL HAMMONDS EXAM 2
PRACTICE QUESTIONS AND ANSWERS 2025
You go out drinking and playing cards with your buddies. After you have consumed a
huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next
morning, after you sober up, your buddy tells you what you did.
Do you think your buddy can legally hold you to the deal to sell him your motorcycle? -
CORRECT ANSWER -No, he can't, if you were so intoxicated that you could not form
the mental capacity to enter into a contract, and your buddy knew you were intoxicated.
Which of the following is a valid offer?
1. Arun distributes flyers at work stating he wants to sell his house, listing the address
and the asking price.
2. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's
lease ends in two months. Arun wants to think about it and six days later has not yet
responded.
3. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for
$300,000." Eric seems to be upset, so Arun says he will sell it for $290,000.
4. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. -
CORRECT ANSWER -2. Eric offers to buy Arun's house for $775,000 with no
contingencies because Eric's lease ends in two months. Arun wants to think about it and
six days later has not yet responded.
Which act or statement is a valid offer? - CORRECT ANSWER -A detailed
advertisement
What type of acceptance requires an affirmative action for the offeree to accept that
offer? - CORRECT ANSWER -Unilateral contracts
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through
automatic charges to her credit card. After taking three months off for winter weather,
Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's
credit card. Lilly protested the charges, stating she did not hire the company to cut grass
for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
- CORRECT ANSWER -1. Lilly's silence is acceptance because of the parties' past
dealings.
2. Lilly's silence is acceptance because the offeree accepted the benefit offered.
, Which situation would be considered sufficient consideration for a contract to exist? -
CORRECT ANSWER -Pam agrees to pay Derek $500 if he does not sit next to her in
class anymore.
(Forbearance)
What are the elements of consideration? Choose 2 answer choices. - CORRECT
ANSWER -1. something of value from each party
2. an exchange to which the parties agree
Which type of lack of capacity is easiest to prove? - CORRECT ANSWER -Minor status
Samuel has mental competency issues. Samuel entered into a contract with Beth, but
now Samuel is petitioning the court to terminate the contract. What options does the
court have in ruling in the case? Choose 2 answer choices. - CORRECT ANSWER -1.
The contract is voidable if Samuel was incompetent at the time the contract was formed.
2. The contract is void if Samuel has been previously determined to be mentally
incompetent.
What is an exception to the statute of frauds? - CORRECT ANSWER -Promissory
Estoppel
Promissory Estoppel - CORRECT ANSWER -Promissory estoppel is an exception to
the statute of frauds writing requirement. If one party makes an oral promise that should
reasonably cause the other party to rely on it, and that party does rely on the promise,
the court may enforce that agreement despite the lack of the required writing.
What is the result if parties agree to a contract orally, but it is a contract that must be in
writing under the statute of frauds? - CORRECT ANSWER -1.The parties can complete
the contract.
2. The contract is voidable.
What is the term for the legal ability to enter into a binding contract? - CORRECT
ANSWER -contractual capacity
What factors may cause a person to lack contractual capacity? - CORRECT ANSWER -
1. severe intoxication
2. mental incompetence
3. being under the age of majority (usually 18)
PRACTICE QUESTIONS AND ANSWERS 2025
You go out drinking and playing cards with your buddies. After you have consumed a
huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next
morning, after you sober up, your buddy tells you what you did.
Do you think your buddy can legally hold you to the deal to sell him your motorcycle? -
CORRECT ANSWER -No, he can't, if you were so intoxicated that you could not form
the mental capacity to enter into a contract, and your buddy knew you were intoxicated.
Which of the following is a valid offer?
1. Arun distributes flyers at work stating he wants to sell his house, listing the address
and the asking price.
2. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's
lease ends in two months. Arun wants to think about it and six days later has not yet
responded.
3. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for
$300,000." Eric seems to be upset, so Arun says he will sell it for $290,000.
4. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. -
CORRECT ANSWER -2. Eric offers to buy Arun's house for $775,000 with no
contingencies because Eric's lease ends in two months. Arun wants to think about it and
six days later has not yet responded.
Which act or statement is a valid offer? - CORRECT ANSWER -A detailed
advertisement
What type of acceptance requires an affirmative action for the offeree to accept that
offer? - CORRECT ANSWER -Unilateral contracts
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through
automatic charges to her credit card. After taking three months off for winter weather,
Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's
credit card. Lilly protested the charges, stating she did not hire the company to cut grass
for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
- CORRECT ANSWER -1. Lilly's silence is acceptance because of the parties' past
dealings.
2. Lilly's silence is acceptance because the offeree accepted the benefit offered.
, Which situation would be considered sufficient consideration for a contract to exist? -
CORRECT ANSWER -Pam agrees to pay Derek $500 if he does not sit next to her in
class anymore.
(Forbearance)
What are the elements of consideration? Choose 2 answer choices. - CORRECT
ANSWER -1. something of value from each party
2. an exchange to which the parties agree
Which type of lack of capacity is easiest to prove? - CORRECT ANSWER -Minor status
Samuel has mental competency issues. Samuel entered into a contract with Beth, but
now Samuel is petitioning the court to terminate the contract. What options does the
court have in ruling in the case? Choose 2 answer choices. - CORRECT ANSWER -1.
The contract is voidable if Samuel was incompetent at the time the contract was formed.
2. The contract is void if Samuel has been previously determined to be mentally
incompetent.
What is an exception to the statute of frauds? - CORRECT ANSWER -Promissory
Estoppel
Promissory Estoppel - CORRECT ANSWER -Promissory estoppel is an exception to
the statute of frauds writing requirement. If one party makes an oral promise that should
reasonably cause the other party to rely on it, and that party does rely on the promise,
the court may enforce that agreement despite the lack of the required writing.
What is the result if parties agree to a contract orally, but it is a contract that must be in
writing under the statute of frauds? - CORRECT ANSWER -1.The parties can complete
the contract.
2. The contract is voidable.
What is the term for the legal ability to enter into a binding contract? - CORRECT
ANSWER -contractual capacity
What factors may cause a person to lack contractual capacity? - CORRECT ANSWER -
1. severe intoxication
2. mental incompetence
3. being under the age of majority (usually 18)
