Chapter 4 What is a Contract? Review

An oral contract is not enforceable by law.

• True

• False

When a bilateral contract is made, one person makes a promise to do something if and when another person does something

• True

• False

Advertisements in newspapers, price tags, and signs in store windows are treated by the law as invitations to negotiate.

• True

• False

Contracts for clothing and motor vehicles are examples of exceptions to the mirror image rule.

• True

• False

A contract that is void has no legal effect.

• True

• False

The taking back of an offer by the offeror is

• revocation

• cancellation

• rejection

• consideration

To be effective, an offer must be communicated to the

• attorney

• lender

• offeree

• offeror

Your friend has lost her bracelet and offers you a reward of $50 if you find it. This is an example of a(n)

• bilateral contract

• acceptance contract

• unilateral contract

• revocation of a contract

Invitations to deal, trade, or make an offer by the seller are considered invitations

• of legality

• to make a counteroffer

• to negotiate

• for consideration

The Statute of Frauds requires that both parties involved in the contract be honest with each other

• True

• False