Contract Law CH 6 TEST REVIEW

Which of the following is not one of the major requirements for a contract? (a) time, (b) genuine assent, (c) capacity, (d) consideration

• time

• genuine assent

• capacity

• consideration

A valid offer must be communicated to the offeree and (a) the offeror must intend to create a legal obligation, (b) the terms must be definite and complete, (c) both a and b, (d) none of these

• the offeror must intend to create a legal obligation

• the terms must be definite and complete

• both a and b

• none of these

An unaccepted offer may be terminated by (a) a counteroffer, (b) a reasonable length of time, (c) the rejection of the offeree, (d) all of these

• a counteroffer

• a reasonable length of time

• the rejection of the offeree

• all of these

A firm offer is binding (a) for a stated time, (b) for not more than three months, (c) even when nothing is paid by the offeree, (d) all of these

• for a stated time

• for not more than three months

• even when nothing is paid by the offeree

• all of these

There is no contract (a) without the exchange of money, (b) without both offer and acceptance on mutually agreed terms, (c) both a and b, (d) none of these

• without the exchange of money

• without both offer and acceptance on mutually agreed terms

• both a and b

• none of these

Social arrangements (a) are not legal obligations, (b) are legal contracts, (c) are subject to breach of contract, (d) none of these

• are not legal obligations

• are legal contracts

• are subject to breach of contract

• none of these

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

• has a genuine need for the goods or services purchased

• has ample room to store goods that are purchased

• has the ability, according to law, to understand his or her actions and the effect of those actions

• all of these

When the price is not specified in contracts between individuals who regularly deal in such goods, (a) the current market price is used as the basis, (b) the highest market price is the basis, (c) the lowest market price is the basis, (d) the contract is null and void

• the current market price is used as the basis

• the highest market price is the basis

• the lowest market price is the basis

• the contract is null and void

Offers that require the offeree to accept by communicating the requested promise to the offeror are (a) unilateral contracts, (b) bilateral contracts, (c) matching offer contracts, (d) mirror image rules

• unilateral contracts

• bilateral contracts

• matching offer contracts

• mirror image rules

When the terms of acceptance must exactly match the terms contained in the offer, it is called (a) a unilateral contract, (b) a bilateral contract, (c) a matching offer contract, (d) a mirror image rule

• a unilateral contract

• a bilateral contract

• a matching offer contract

• a mirror image rule