Contract formation B

Which of the following elements is necessary for a valid contract to be formed?

• Verbal agreement

• Offer, acceptance, and consideration

• Written contract

• Intent to negotiate

When does an acceptance of an offer become effective?

• When it's sent by the offeror

• When it's received by the offeror

• When the offeror responds with approval

• When a witness is present

: An invitation to treat is:

• A binding offer

• An acceptance of an offer

• An intention to revoke an offer

• A preliminary communication

Consideration refers to:

• Something of value exchanged in a contract

• A formal written contract

• A promise made in a social context

• The time frame within which an offer must be accepted

Which of the following circumstances would render a contract voidable?

• Both parties mutually agree to terminate the contract

• One party fails to perform their obligations

• The contract is not in writing

• The contract is not signed by a witness

An offer must be communicated to:

• Any third party

• A close friend

• The offeree or their agent

• The offeror's family

Which of the following situations would NOT satisfy the requirement of a "meeting of the minds" in contract formation?

• Both parties understand the key terms and intend to be bound

• One party intends to deceive the other party

• The parties are from different countries

• The parties disagree on minor details

A unilateral contract is one where:

• Both parties make promises to each other

• Only one party makes a promise that the other can accept by performing

• Both parties perform their obligations simultaneously

• Neither party is obligated to perform

Which of the following statements is true regarding the legal capacity to form a contract?

• Minors have the same capacity as adults to form a contract

• Persons with mental incapacity cannot form contracts

• Corporations cannot enter into contracts

• All contracts require approval from a court of law

Consideration in a contract must be:

• Of equal monetary value exchanged between parties

• A tangible object, such as money or property

• Something of legal value that each party gives to the other

• Provided only by the offeror, not the offeree