Law Ch. 2/Contracts

Which of the following is not one of the major requirements for a contract?

• a. time
• b. genuine assent
• c. capacity
• d. consideration

An unaccepted offer may be terminated by

• a. a counteroffer.
• b. a reasonable length of time.
• c. the rejection of the offeree.
• d. all of these.

There is no contract

• a. without the exchange of money.
• b. without both offer and acceptance on mutually agreed terms.
• c. both a and b.
• d. none of these.

Capacity to contract means that the person

• a. has a genuine need for the goods or services purchased.
• b. has ample room to store goods that are purchased.
• c. has the ability, according to law, to understand his or her actions and the effect of those actions.
• d. all of these.

Offers that require the offeree to accept by communicating the requested promise to the offeror are

• a. unilateral contracts.
• b. bilateral contracts.
• c. matching offer contracts.
• d. mirror image rules.

The Uniform Commercial Code makes firm offers binding for a stated period of time not to exceed

• a. six months.
• b. one month.
• c. three months.
• d. none of these.

If the party to whom an offer has been made agrees to the proposal, which of the following occurs?

• a. bilateral acceptance
• b. acceptance
• c. unilateral acceptance
• d. enforceable contract

All economic activity is based upon an enforceable agreement between parties. This agreement is known as a(n)

• a. contract.
• b. offer.
• c. invitation.
• d. warranty.

A genuine agreement may be lacking due to

• a. duress.
• b. fraud.
• c. undue influence.
• d. all of these.

In the case of fraud, what remedies are available to the injured party?

• a. rescission only
• b. rescission, compensatory damages, and punitive damages
• c. rescission and punitive damages
• d. none of these