Unit 2 - Contracts - Chapter 6

What are the essential elements of a legally binding contract?

• Offer, acceptance, consideration, legality, capacity, mutual consent

• Offer, trust, legality, goodwill

• Agreement, fairness, payment, mutual respect

• Proposal, counteroffer, trust, legality

Which of the following is an example of consideration in a contract?

• A simple discussion about future intentions

• A verbal promise with no expectation of return

• A handshake agreement

• A promise to pay for a service in exchange for work performed

 What is the role of an offer in a contract?

• To guarantee an agreement will be legally enforced

• To make a counteroffer invalid

• To suggest terms that, if accepted, form a contract.

• To ensure both parties have an equal say in negotiations

What does the term "mutual consent" mean in contract law?

• Both parties must verbally agree to the contract

• Both parties must understand and willingly agree to the contract terms

• One party must set the terms, and the other must follow

• A contract must be approved by a court

Which of the following is NOT a type of contract?

• Express contract  

• Implied contract  

• Unilateral contract

• Emotional contract

A business owner hires a marketing agency for an advertising campaign. The agency does the work, but the owner won't pay. What rule applies?

• The contract is not valid because it’s not in writing

• The owner still has to pay because of the contract agreement

• The owner doesn’t have to pay since the work was already done

• The contract automatically renews by law

What is a breach of contract?

• The fulfillment of the terms of the contract.

• The violation of any agreed-upon terms in a binding contract.

• The signing of a contract.

• The process of creating a contract.

Which of the following is not an example of a breach of contract?

• Both parties agree to terminate the contract before completion

• A party fulfills all contract obligations on time.
  

• A party states in advance that they will not fulfill the contract.

• Failing to deliver a promised product on time.

Why is the court system selective in what it will enforce?

• Because of unlimited resources available to the court system

• Because of limited resources, which makes it necessary to prioritize certain cases.

• Because all cases are treated equally regardless of resources.

• Because the court system only enforces criminal laws

Which of the following is NOT a requirement for a legally enforceable contract?

• Offer and Acceptance

• Genuine Assent

• Consideration

• Complexity