Offers & Contracts Test

contract

any agreement that is enforceable by law results from an exchange of promises to do something or to give something of favlue

offeror

The person who makes the offer is the _______

offeree

The person to who the offer is made is the _________

6

Agreements must contain _ elements to be legal and to exist

Offer

proposal made by one party to another intended to create a legally binding agreement.

acceptance

agreement of the offeree to be bound by the terms of the offer

genuine agreement

offer and acceptance go together

capacity

legal ability to enter a contract excuses minors, mentally incompetent, or drugged and intoxicated

consideration

exchange of things of value creating the bond between parties

legality

contract must not contain illegal acts

valid contract

a contract that is legally binding'; all 6 elements

void contract

a contract with no legal effect

voidable contract

a contract can be cancelled or avoided

unenforceable contract

a contract the court will not uphold due to law or rule of laws

expressed contract

a contract statement that may be oral or written

implied contract

a contract that comes about from the actions of the parties

bilateral contract

a contract that contains 2 promises

unilateral contract

a contract that contains a promise by only one person to do something, if and when the other party performs some acts

oral or written

comes into existence by speaking, binding contract

Statute of Frauds

requires certain contracts must be written to be enforceable

1. The offer or must have serious intent

2. The terms of the offer must be definite and certain

3. The offer must be communicated to the offeree

What are the 3 requirements of a valid offer?

Determine what was intended by the parties. State their resulting legal rights and duties.

Why must an offer be definite and certain?

True

True or false? An offer must clearly state all terms

False

True or false? Advertisements are offers

An offer

If an advertisement says “First come, first serve,” is it an offer or an invitation?

Acceptance

___________ occurs when a party to whom an offer has been made agrees to the proposal

Mirror Image Rule

the terms stated in the acceptance must exactly mirror the terms of the offer

False

True or false? Acceptance can be conditional

comes into existence

When acceptance occurs, that is the time the contract ______________

True

For face to face or on the telephone, there are no special problems for acceptance. True or false?

Common Law

What states that acceptance must be sent over long distances is effective when sent?

Delivery

If a faulty address is used, acceptance is not complete until?

Real estate and services

When can an offer or specify the time by which the acceptance must be received to be effective?

sale of goods contracts

acceptance takes place when sent as long as the method of communication is reasonable

True, unless it is a continuing relationship

True or false? An offer cannot have silence as acceptance

False

True or false? An express contract must be written

True

True or false?Contracts are legal links between the individuals and companies producing and consuming goods and services

True

True or false? An offer must be definite and complete to be enforceable

False

True or false? An oral contract is not enforceable by law

False, it is only option offer

True or false? Paying to have an offer held, ends the original offer