Crucial Exams

Multistate Bar Examination Practice Question

An advertising agency invited a talented graphic designer to participate in a design competition to obtain a new logo for one of its clients. The invitation stated that, if the designer submitted a design by March 1, the company would evaluate all entries and award $5,000 to the creator of the selected design. The designer submitted his design on February 25. On February 28, the advertising agency decided to cancel the competition due to budget constraints. The designer learned of the cancellation on March 1 and demanded payment. Is the advertising agency obligated to pay the designer?

  • No, the agency is not obligated to pay because it canceled the competition before selecting a winner.

  • Yes, the designer had already accepted the agency’s offer by beginning performance before the cancellation.

  • Yes, the agency is obligated to pay because the designer submitted his design by the stated deadline.

  • No, the agency is not obligated to pay because there was no written agreement guaranteeing payment.

Multistate Bar Examination
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