B-P Law Chapter 4: Contract Law (Test Review)

An oral contract is not enforceable by law.

• True

• False

A valid contract must contain at least four of the six elements of a contract.

• True

• False

Consideration is the legal ability to enter a contract.

• True

• False

When a bilateral contract is made, one person makes a promise to do something if and when another person does something.

• True

• False

Contracts for clothing and motor vehicles are examples of exceptions to the mirror image rule.

• True

• False

According to common law, when you send an acceptance over long distances, it is effective three days after it is sent.

• True

• False

A contract that is void has no legal effect.

• True

• False

The Statute of Frauds requires that both parties involved in the contract be honest with each other.

• True

• False

Advertisements in newspapers, price tags, and signs in store windows are treated by the law as invitations to negotiate.

• True

• False

An offer must always be made seriously for it to be legal.

• True

• False