1. Promissory estoppel is an exception to the consideration requirement.

True

False

2. A mutual mistake exists when both parties to the contract have an erroneous assumption about the same important fact. When both parties are indeed mistaken about the same important fact, the resulting contract can be avoided if:

The mistake relates to a basic assumption upon which the contract was made

The mistake relates to an intrinsic fact that is material to the contract

The party adversely affected by the mistake did not bear the risk of the mistake

All of the choices are correct.

3. A newspaper runs the following add, "Nationally famous suits. Today only $300.00. " Is this an offer?

This is most likely only an invitation to deal since the terms are not certain and definite enough.

This is definitely an offer. All of the terms are specific and nothing is left open to negotiate.

This is a firm offer.

This is a counter-offer.