Unit 2: Contract Law

Communication and mutual agreement between two parties with the knowledge that it will create a legally binding relationship?

• Intention to be partners

• Intention to be friends

• Intention to create legal relations

• Intention to create a connection

An essential element of a contract; once it has been made and accepted, it is binding

• Acceptance

• Offer

• Consideration

• Terms

When the offeree accepts the proposal of the person making the offer (offeror)?

• Acknowledgement

• Acceptance

• Gratitude

• Thanksgiving

Store advertising is an example of?

• Propaganda

• Persuasive material

• Offer

• Invitation to treat

Usually exchanged in the form of money to complete a contract

• Consideration

• Gold

• Ducats

• Galleons

What is the postal rule?

• Contracts can only be delivered by carrier pigeon

• All contracts must have a postage stamp

• Acceptance occurs when the letter of acceptance is received

• Acceptance occurs when the letter of acceptance is posted, even if it is not received for several days

What is a representation? Select all that are correct.

• A statement of fact which is relied on by the receiving party and induces them to enter a contract

• The collective noun for a group of lawyers

• Different ways of reading a contract

• Statements made before an offer

Terms in a contract can be?

• Visible and invisible

• Implied and explicit

• Known and unknown

• Red and black

Any provision that forms part of a contract

• Words

• Clauses

• Terms

• Statements

The fundamental terms of a contract? (If not performed, it would make the performance of the rest of the contract totally different from what was agreed)

• Conditions

• Provisions

• Rules

• Guidelines