Business Law: Valid Contract

This video tutorial covers the essential requirements for a valid contract, including legal capacity, legality, agreement, and consideration. It delves into the components of an agreement, such as the offer and acceptance, and explains the roles of the offeror and offeree. The tutorial also discusses the termination of offers, highlighting reasons like revocation, rejection, and counteroffers. Through examples and analogies, the video provides a comprehensive understanding of contract formation and the factors affecting it.

What are the four main requirements for a valid contract?

• Legal capacity, legality, agreement, and consideration

• Legal capacity, offer, acceptance, and consideration

• Offer, acceptance, legality, and consideration

• Legality, agreement, offer, and acceptance

What is required for a person to have legal capacity in a contract?

• Being at least 18 years old and mentally competent

• Being at least 21 years old

• Having a valid ID

• Being a legal resident

Which of the following is an example of an illegal contract purpose?

• Selling a car

• Hiring a contractor

• Gambling

• Renting an apartment

In contract law, who is the offeree?

• The person who accepts or rejects the offer

• The person who makes the offer

• The person who witnesses the contract

• The person who drafts the contract

What does the mailbox rule state about acceptance?

• Acceptance is effective when the offer is made

• Acceptance is effective when the offeree sends it

• Acceptance is effective when the offeror receives it

• Acceptance is effective when the contract is signed

Which of the following is NOT a reason for the termination of an offer?

• Acceptance

• Lapse of time

• Revocation

• Counteroffer

What happens when an offeree makes a counteroffer?

• The original offer is accepted

• The original offer is ignored

• The original offer is terminated and a new offer is created

• The original offer is modified