Business Law: Chapter 6

The person to whom an offer is made is termed the offeror.

• True

• False

All contracts have to be in writing to be enforceable.

• True

• False

A store display of a MP3 player marked $121.00 would be an offer.

• True

• False

The right to withdraw an offer before it is accepted is known as the right of redemption.

• True

• False

A clear rejection terminates an offer.

• True

• False

If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement is itself a binding contract and is called a counteroffer.

• True

• False

The requirement that the acceptance must exactly match the offer for an agreement to be legally effective is known as the reverse image rule.

• True

• False

While an implied-in-fact contract does not have its terms expressly stated the terms can be inferred from the parties' acts or conduct.

• True

• False

A failure to respond at all to an offer can be construed as an acceptance.

• True

• False

Unlike other methods of acceptance, a mailed acceptance is effective only when received by the offeror.

• True

• False