7-1 Elements of a Contract

What is required for a contract to be legally enforceable?

• Offer, acceptance, consideration, capacity, intention, and lawful purpose

• Offer, acceptance, consideration, and a witness

• Offer, acceptance, and a handshake

• Offer, acceptance, and a written document

What is an offer in contract law?

• A promise to perform a specific act in the future

• A written document outlining the terms of a contract

• A verbal agreement between two parties

• A proposal made by one party to another to enter a contract based on specified terms

Which of the following is NOT a form of an offer?

• Verbal offer

• Offer by silence

• Written offer

• Offer by action

What is a counteroffer?

• An acceptance of the original offer

• A rejection of the original offer

• A response to an offer that proposes alternative terms

• A verbal agreement to the original offer

What does consideration in a contract refer to?

• The lawful purpose of the contract

• The intention to create a binding agreement

• Something of value exchanged between parties

• The legal ability to enter into a contract

Who generally lacks the capacity to enter into a contract?

• Minors under 18

• Individuals over 18

• Mentally competent adults

• Corporations

What demonstrates the intention to enter into a contract?

• Refusing to negotiate

• Signing the contract

• Ignoring the contract terms

• Discussing the contract terms casually

What is express intent?

• A casual conversation about a potential agreement

• A clearly stated desire to create a binding agreement

• An implied desire to create a binding agreement

• An unspoken understanding between parties

What is required for a contract to have a lawful purpose?

• The contract must be signed by a witness

• The contract terms must not violate any laws or public policy

• The contract must involve a monetary exchange

• The contract must be in writing

What happens if a party fails to meet their contractual obligations?

• The contract is automatically void

• The contract is renegotiated

• The party can be subject to legal action

• The contract is considered null and void