Topic 2 - Elements of Contract

A proposal by one party to another intended to create a legally binding agreement is a/an _____________

• acceptance

• agreement

• contract

• offer

Any agreement enforceable by law is a/an_________

• acceptance

• legality

• contract

• offer

What is a contract?

• An agreement between 2 parties

• An agreement between 2 or more parties which is enforceable by law

• An agreement which is unenforceable

• A written agreement between 2 parties

A person making a proposal or an offer is known as:

• offeree

• offeror

• buyer

• seller

What is the meaning of invitation to treat?

• An act of inviting people to pay for consideration

• An act of inviting people to make an offer

• An act of inviting people to make an acceptance

• An act of inviting people to make a donation

What is revocation of an offer?

• Acceptance towards an offer

• Modification towards an offer

• Cancellation of an offer

• Alteration towards an offer

What are the 7 elements of contract

• Offer, acceptance, consideration, intention to create legal relation, certainty, capacity and free consent.

• Offer, certainty, Acceptance, consideration, intention, capacity and consent.

• Offer, certainty, Acceptance, money, intention, capacity and consent.

• Offer, certainty, Acceptance, consideration, intention to create legal relation, capacity and consent.

When an offer can be revoke?

• At any time before an acceptance is made

• After an acceptance is made

• After an offer is accepted

• After an offer is made

A/An ________________ occurs when one party to a contract does not do what he or she agreed to do.

• breach

• fraud

• consideration

• ratification

Consideration in a contract means that:

• A person has the mental capacity to enter into a contract.

• The two parties deal with the contract in a polite manner.

• The contract is legal and fully valid.

• Something of value is being exchanged by the two parties.