1.Juan thinks he would like to purchase Taras house, but doesn&#

1.Juan thinks he would like to purchase Tara's house, but doesn't know whether he will be able to save enough money for a down payment on a loan. Juan agrees to give Tara $5,000 for the option to purchase her house for $150,000 sometime within the next five years. Juan and Tara reduce their agreement to writing, sign it, and Juan gives Tara $5,000. Two years later, Juan wins the lottery and now is financially able to purchase Tara's house. However, that same day Juan receives a letter from Tara revoking her offer to sell for $50,000. Which of the following is true?

A. Tara's revocation is effective as long as she refunds the $5,000.
B. Juan can't complain because he failed to accept Tara's offer before it was revoked.
C. Tara's revocation isn't effective.
D. Tara's revocation is effective.

3.Manny says to Carmela, "I'll paint your house for $100." Carmela says "I accept, provided you also wash the windows." Under common law, the most likely result in this case is that there's

A. a contract to paint for $100.
B. a contract to paint and wash for an amount yet to be determined.
C. no contract.
D. a contract to paint and wash for $100.

4.Josh runs over Barbara's dog. Barbara promises not to sue Josh if he pays her $200. Josh pays $200. Then Barbara sues, claiming an agreement not to sue doesn't constitute consideration. Which of the following is true?

A. Such contracts violate public policy and therefore are unenforceable.
B. Agreement not to sue is consideration only if it approximates what a court would have awarded.
C. Agreement not to sue is consideration.
D. Agreement not to sue isn't consideration.

5.Finn agrees to pay $100 to anyone who will paint his house. Will hears about the offer and paints. Finn refuses to pay, saying Will never formally accepted Finn's offer. Which of the following is true?

A. This is a bilateral contract, and Will didn't accept.
B. This is a unilateral contract and painting constituted acceptance.
C. Offer and acceptance are irrelevant if one of the parties changes position.
D. Will has to formally accept, but can do so within a reasonable time after painting.

6.Tyler offers to dance naked on Main Street if Corey will mow Tyler's yard. Corey mows Tyler's yard. Which of the following statements is not potential grounds for setting aside the contract?

A. Lack of serious intent to contract
B. Inadequacy of consideration
C. Illegality of consideration
D. All of the above are potential grounds for setting aside the contract

9.Madison enters into a contract with a DVD club to purchase four DVDs during the coming year. The agreement provided that she would receive an advertisement listing the main selections, which would be sent to her automatically, unless she sent a reply to stop the shipment. The DVD club sent the first month's advertisement and Madison did nothing. When Madison later received the main selection for that month she complained that she hadn't accepted it. Must Madison pay for it?

A. Yes, because her silence in this case constituted acceptance.
B. No, because Madison didn't specifically order the goods.
C. No, because her silence in this case didn't constitute acceptance.
D. Yes, because the price is fair.