Understanding Contracts Quiz

What is the best definition of a contract?

• A casual promise between friends

• A written agreement between companies

• An oral or written agreement that is legally binding and enforceable by law

• A verbal discussion about business

Who is the offeror in a contract?

• The person accepting the offer

• The person negotiating the terms

• The person making the offer

• The person writing the contract

What role does the offeree play in a contract?

• Makes the counteroffer

• Accepts the offer

• Makes the offer

• Receives the offer

Who becomes the acceptor in a contract?

• The person who drafts the contract

• The offeree after accepting the offer

• The offeror once the offer is accepted

• The person who negotiates

Which scenario best describes a counteroffer?

• A customer asks for a discount

• A seller lowers the price

• A buyer offers a different price than asked

• A buyer agrees to the price listed

What happens when a counteroffer is accepted?

• The contract is cancelled

• The offeree becomes the offeror

• The offeror stays the same

• The original offer stands

What is an invitation to treat?

• A legal agreement to buy something

• A final offer made by a seller

• A willingness to negotiate or invite offers

• A formal business contract

In the taxi role play where the driver says the fare is $8 and the passenger offers $5, what is the passenger's response considered?

• Acceptance

• An invitation to treat

• A counteroffer

• A rejection