Darrin paid Kevin $50 for a one-week option to purchase Kevin's guitar for $700. Within the option period, Darrin tried to purchase the guitar but Kevin had already sold it to someone else. Darrin is suing Kevin claiming breach of contract.

1. Kevin offered to sell his guitar to Darrin for $700. Darrin wanted time to think it over but did not
want Kevin to sell to anyone else in the interim. Therefore Derrin gave Kevin $50 in exchange
for Kevin's promise to keep the offer open for one week. Three days later, Darrin learned that the
guitar had been sold to Bret. Nevertheless, before expiration of the one week period, Darrin
tendered payment of the balance and demanded the guitar. Kevin is unable to comply, since Bret
now has the guitar. Which of the following is correct?
Question 5 options:
A)
There was no contract with Darrin because Kevin's offer was effectively revoked prior to
acceptance.
B)
There was no contract with Darrin but under the theory of promissory estoppel the court will
award suitable damages to Darrin.
C)
There was a contract with Darrin for the sale of the guitar, which Kevin has breached, because
Kevin is bound by Darrin's acceptance of his firm offer.
D)
Kevin has breached his option contract with Darrin.
Question 6 (Mandatory) (1 point)
Generally, one who responds to an advertisement for goods:
Question 6 options:

2. A)
B)
C)
D)
Question 7 (Mandatory) (1 point)
Which of the following will not cause termination of an offer to sell a computer?
Question 7 options:
A)
B)
C)
D)
Question 8 (Mandatory) (1 point)

3. Bill has a motorcycle for sale for $500. Alex offers to buy Bill's motorcycle for $425. Which of
the following statements by Bill constitute an acceptance?
Question 8 options:
A)
"I would consider $475, but nothing less."
B)
"Your offer is tempting."
C)
"While I think you are getting a very good deal, yes, I will sell the cycle for $425."
D)
two of the selections
E)
None of the selections
Question 9 (Mandatory) (1 point)
Jud says to Mike, "I'll sell you my computer for $500 if you run through the cafeteria shouting 'I
am the walrus! I am the walrus!'" How can Mike accept the offer?
Question 9 options:

4. A)
B)
C)
D)
Question 10 (Mandatory) (1 point)
On June 1, Fred makes an offer to Barney. Barney says he will think about it and leaves. On June
2, Fred mails a letter to Barney that says, "I revoke my offer." On June 3, Barney mails Fred a
letter that says, "I accept your offer." On June 4, Fred receives Barney's letter, and Barney
receives Fred's letter. Which of the following is true?
Question 10 options:
A)
B)
C)

5. D)
E)
A)
There was no contract with Darrin because Kevin's offer was effectively revoked prior to
acceptance.
B)
There was no contract with Darrin but under the theory of promissory estoppel the court will
award suitable damages to Darrin.
C)
There was a contract with Darrin for the sale of the guitar, which Kevin has breached, because
Kevin is bound by Darrin's acceptance of his firm offer.
D)
Kevin has breached his option contract with Darrin.