Contract Law Questions

What are the differences among valid, void, and voidable contracts?

• Valid contracts are legally binding and enforceable, void contracts are not enforceable by law, and voidable contracts are initially valid but can be annulled by one party.

• Valid contracts are not legally binding, void contracts are enforceable by law, and voidable contracts cannot be annulled by any party.

• Valid contracts can be annulled by either party, void contracts are always enforceable, and voidable contracts are never legally binding.

• Valid contracts are always void, void contracts are always valid, and voidable contracts are neither valid nor void.

What are the differences between express and implied contracts?

• Express contracts are stated in words, while implied contracts are formed by actions.

• Express contracts are formed by actions, while implied contracts are stated in words.

• Express contracts and implied contracts are both formed by actions.

• Express contracts and implied contracts are both stated in words.

What is a unilateral contract?

• A contract where only one party makes a promise or undertakes a performance.

• A contract where both parties make promises to each other.

• A contract that is not legally binding.

• A contract that requires a third-party beneficiary.

You lost your backpack and posted a $20 reward for it. If someone who did not know about the reward returned the backpack, would you be legally obligated to pay the reward?

• Yes, you are legally obligated to pay the reward.

• No, you are not legally obligated to pay the reward.

Which of the following is a characteristic of an offer?

• It must be communicated to the offeree

• It can be vague and indefinite

• It does not require acceptance

• It can be revoked at any time without notice

Which of the following is a requirement of an acceptance?

• It must be communicated to the offeror.

• It must be in writing.

• It must be notarized.

• It must be witnessed by a third party.

When is an offer terminated?

• When the offer is accepted

• When the offer is rejected

• When the offer is revoked

• All of the above

Why is it important to be able to distinguish between an offer and an invitation to negotiate?

• To ensure clarity in legal agreements

• To avoid misunderstandings in casual conversations

• To enhance negotiation skills

• To improve communication in personal relationships