BUS320 Chapter 10 Quiz

A request to negotiate is an offer.

False

An invitation to submit bids is an offer.

False

To exercise the power of acceptance effectively, an offeree must accept an offer without adding or changing any terms.

True

With respect to consideration, a bargained-for exchange distinguishes a contract from a gift.

True

A minor can ratify a contract and thus make it enforceable.

True

A preliminary agreement can constitute a binding contract if the parties have agreed on all essential terms.

True

Acceptance may consist of words or conduct.

True

An agreement to agree to the material terms of a contract at some future date may be enforceable.

True

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

True

Contests and lotteries are unilateral contracts.

True

In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

True

Painting a garage can constitute "something of legally sufficient value."

True

A contract provision that deprives one party of the benefits of the agreement may seem unfair but a court is not likely to consider it unconscionable.

False

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

False

Ordinarily, one can agree to a bargain without knowing that it exists.

False

The lack of a license in certain occupations bars the enforcement of work-related contracts.

True