Business Law Review

Capacity to contract means that the person

• a. has a genuine need for the goods or services purchased.
• b. has ample room to store goods that are purchased.
• c. has the ability, according to law, to understand his or her actions and the effect of those actions.
• d. all of these.

A legal term meaning the exchange of things of value

• genuine assent

• acceptance

• consideration

• proper form

For a contract to be legally binding, there are three requirements. These include all except

• What each party exchanges must have legal value (something of worth)

• Each party must make a promise or perform an act

• Each party’s promise or act must be in exchange for a returned promise or act

• Each party must have the contract signed by a lawyer

All of the following contracts fall under the Statute of Fraud and must be written, except

• contracts that take less than a year to fulfill

• goods over $500

• land purchases

• marriage

Jim purchases a rare antique piece for $5,000. The contract was signed by both parties. in this scenario, who is Jim?

• donee

• donor

• offeree

• offeror

Agreeing to give false testimony violates which element?

• capacity

• consideration

• legality

• offer

Jake negotiates with Herman over the purchase of his car. Eventually Herman accepts Jake's new offer. How is this contract accepted?

• novation

• refusal

• counteroffer

• mirror image rule

A contract to charge a set price with competitors violates which element?

• capacity

• consideration

• legality

• offer