Unit 6 Review

Which of the following is an example of a common contract?

• Rental lease

• Shopping list

• Personal diary

• Birthday invitation

How can contracts affect individuals?

• They can affect financial status and create legal and financial implications.

• They can only affect your social life.

• They have no impact on your finances.

• They are only used for entertainment purposes.

Which of the following is NOT listed as a common contract in the material?

• Employment offer letter

• Credit card agreement

• Insurance policy

• Warranty agreement

What must the purpose of a contract be for it to be legally binding?

• Legal (not illegal)

• Profitable

• Secret

• Complicated

Which action often demonstrates that all parties consent to the terms of a contract?

• Signing the contract

• Reading the contract aloud

• Mailing the contract

• Stamping the contract

What is the term used when the second party accepts the offer in a contract, sometimes called “meeting of the minds”?

• Acceptance

• Consideration

• Terms and Conditions

• Time Requirements

In a contract, what does "consideration" refer to?

• The rules that must be followed

• The exchange of something of value for something of value

• The deadlines included in the contract

• The initial offer made by one party

Why are time requirements important in a contract?

• They specify the value exchanged

• They outline the rules to be followed

• They include deadlines or a time frame for responsibilities

• They describe the acceptance process

If the terms and conditions of a contract are violated, what may happen?

• The contract becomes stronger

• The contract may become void or allow someone to exit the contract

• The value exchanged increases

• The offer is repeated

Which of the following types of contracts usually require a written contract to be legally reliable?

• Insurance contracts

• Oral agreements for dinner plans

• Verbal promises between friends

• Informal handshake deals