Understanding Contracts and Bargains

What is the primary basis of a contract?

• Mutual promises

• A written document

• A verbal agreement

• A handshake

Which type of promise is more likely to lead to a contract?

• A private promise

• A public promise

• A gift promise

• A joke promise

Why is it important for the promise to be part of a bargain?

• To increase the value of the promise

• To involve more parties

• To make it legally binding

• To ensure the promise is serious

In a contract, what must be exchanged between parties?

• Only promises

• Only goods

• Something of value from each side

• Only services

What role does the person who initiates an exchange play in a contract?

• Contractor

• Promisee

• Offeree

• Offeror

How can an offeree accept an offer in a contract?

• By accepting the exact terms or performing

• By making a counteroffer

• By delaying the response

• By ignoring it

What is the role of the offeror in a contract?

• To negotiate the terms

• To enforce the contract

• To propose the terms of the exchange

• To accept offers

What is a bilateral contract?

• A contract that is not legally binding

• A contract with only one promise

• A contract where both parties make promises

• A contract involving more than two parties

What happens if the offeree accepts different terms than those offered?

• The original offer is accepted

• A new contract is formed

• No contract is formed

• The offeror must accept the new terms

What does the phrase 'the offeror is the master of the bargain' imply?

• The offeror has no control over the terms

• The offeror must accept any counteroffer

• The offeror sets the terms of the offer

• The offeror can change the terms anytime