Business Law I Ch. 5 test review

Contract refers to

• a proposal by one party to another.

• a willingness to go along with another party.

• an agreement enforceable by law.

• an invitation to deal or trade.

Acceptance refers to

• a willingness to go along with a proposal.

• a proposal by one party to another.

• an invitation to deal or trade.

• an agreement enforceable by law.

A genuine agreement means that

• a valid acceptance is met by an invalid offer.

• an invalid offer is met by a valid acceptance.

• a valid offer is met by an invalid acceptance.

• a valid offer is met by valid acceptance.

A bilateral contract is one that

• contains a promise by one person only.

• contains two promises.

• comes from the actions of the parties.

• is required to be written.

An invitation to negotiate is

• the same an an offer.

• the same as an acceptance.

• not an offer.

• legally binding.

To counteroffer is to

• reject all the terms of the original offer.

• take back an original offer.

• accept the terms of the original offer.

• change the terms of the original offer.

Revocaition refers to

• the taking back of an offer.

• voiding an offer.

• accepting an offer.

• making another offer.

The mirror image rule states that

• the terms in an offer are void.

• the terms in an acceptance must match the terms in the original offer.

• a counteroffer must reflect the terms of an offer.

• the terms of an acceptance must be unilateral.

There are _____ elements of a contract.

• 3

• 6

• 8

• 12

A _____ contract is stated in words and may be either oral or written.

• implied

• partial

• express

• agreeable