Business Law -- Contracts

An agreement comprised of an offer and an acceptance is one element of a legal contract

• True

• False

Another element of a legal contract is consideration in equal amounts. For instance: If I do $50 worth of work, you must in return give me $50.

• True

• False

Another element of a legal contract is that both parties must have capacity to contract.

• True

• False

Another element of a legal contract is that the contract entered into must be for legal purposes if a court is going to enforce it.

• True

• False

A contact to be enforceable must always be in writing.

• True

• False

While advertisements can be offers to enter into a contact, negotiations in an attempt to get the best price are not considered offers.

• True

• False

A willingness to enter into a bargain in such a way that another person would interpret that they could accept it concluding any negotiation is considered an:

• Offer

• Acceptance

• Consideration

• Capacity

Once a party starts to perform the agreed upon task, it can be said that the part has:

• Accepted the Contract terms

• Rejected the Contract terms

• Made a counter-offer

• Agreed to work while negotiations continue

Until ______________________ begins, the part who accepts the contract can back out at any time.

• Negotiations

• Capacity to contract has been determined

• Performance

• the counter-offer process

The promise within a contract and a return promise within a contract are legally defined as:

• An offer

• An acceptance

• Consideration

• Capacity