3_Law of Contract

Which of the following is NOT an essential element of a valid contract?

• Agreement

• Consideration

• Invitation to treat

• Capacity

What happens when a counter-offer is made during contract negotiations?

• The original offer remains valid until the counter-offer is accepted.

• The original offer is automatically terminated.

• Both offers remain valid until one is accepted.

• The contract is formed immediately.

Which of the following would NOT be considered a legally binding contract?

• A written agreement for the sale of land.

• An oral agreement made at an auction.

• A casual promise between friends to go out for dinner.

• A purchase made at a checkout counter.

What is the primary purpose of consideration in a contract?

• It ensures both parties are of legal age.

• It guarantees that the contract is in writing.

• It establishes that something of value is exchanged between parties.

• It confirms that a contract cannot be terminated.

Which of the following is NOT a valid way to terminate a contract?

• Performance

• Frustration

• Intention

• Breach