Contracts and Sales Multistate Bar Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Contracts and Sales Multistate Bar Exam with our comprehensive quiz, featuring flashcards and multiple choice questions. Each question comes with hints and explanations to enhance your learning. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What happens in the case of crossing offers?

A contract is formed as soon as one offer is received
Both parties must modify their offers to agree
No contract is formed due to mutual ignorance
Both parties enter into a binding agreement immediately

The correct answer is: No contract is formed due to mutual ignorance

When crossing offers occur, each party makes an offer to the other without knowledge of the other's offer. This situation leads to a state of mutual ignorance regarding the existence of the opposing offer. In this scenario, although both parties have expressed intent to contract, there is no acceptance of one offer by the other; therefore, a contract is not formed. In contract law, for a valid contract to be created, there must be a clear acceptance of an offer. If both parties are unaware of each other's proposals, they have not effectively communicated acceptance, which is a critical element in the formation of a contract. Thus, the conclusion that no contract arises due to mutual ignorance of the offers accurately reflects the legal principles surrounding offer and acceptance in contract formation.