Law chapter 7 test questions

what are the terms for sale of estates?

1. identify the specific lot 2. price 3. full terms of payment 4. date of delivery of possession 5. date of delivery of deed if one of these is missing it is not a valid offer

Three requirement of an offer

1. intend to create a legal obligation 2. the terms must be definite and complete 3. offer must be communicated to the offeree

what are the three requirements of acceptance?

1. made to the person or persons to whom the offer was made 2. match the terms in the offer (mirror image rule) 3. be communicated to the offeor

what are the six major requirements that must be satisfied before courts will transactions as contracts

1. offer and acceptance offer must be accepted to the party for it was offered 2. Genuine Assent the agreemant must not be based on one party decieving another 3. Legality what the parties agree to must be legal.. so you cannot pay someone to commit a crime 4. Consideration the agreement must involve both sides recieving something of legal value as a result of the transiction 5. Capacity to have a completly enforceable agreement must be able to contract for themselves 6. writing aome agreements must be placed in writing for it to be enforcable in court doesn't have to

what are the three steps to create a valid offer?

1. the offeror must appear to intend to create a legal obligation 2. the terms must be definate and complete 3. the offer must be communicated to the offeree

To put something of value down to hold an offer open is called a/an

A option contract

Which of the following is NOT a requirement of a valid offer

A written form

Which of the following is NOT a requirement for a valid acceptance

Capacity

Every offer, when properly made, is always ended either by acceptance or rejection by the offeree

False

Which of the following is not a requirement for a valid contract

Implied Terms

If the offeree fails to communicate the acceptance to an offer, the offer is ended by

Lapse of time

Firm offers

MERCHANT offeror makes WRITTEN offer to buy or sell GOODS, giving assurances that the offer will be held open

A/An __________________ is used to hold an offer open for a period of time.

Option

How is an offer ended:?

Reasonable length of time insanity or death of offeror or offeree prescribed time, as stated in the offer with indicated date and time Revocked by ther offeror prior to acceptance oferee rejects counteroffer by offeree

Advertisements are considered invitations rather than offers.

True

Even though the offeree has given nothing of value in exchange, a merchant who makes a firm offer may not revoke it.

True

The __?__ makes firm offers binding for the time stated.

UCC

what is the difference between unilateral and bilateral contracts?

Unilateral: (IF you mow my lawn i'll pay u $5) the person has to mow the lawn to receive the $5 Bilateral: Mutual exchange or promises ( do you agree to mow my lawn for $5) I agree

An unaccepted offer may be terminated by

a counteroffer reasonable length of time the rejection of the offeree

A valid offer must be communicated to the offeree and

a. offeror must intend to create a legal obligation b. the terms must be definite and complete both a and b (correct answer)

capacity

abilty to contract for one's self rather than obligated to use parents or legal help

Silence is not

acceptance

acceptance

affirmative response necessary to transform an offer into a contract

contract

agreement that legally effective and enforceable in court

Offers that require the offeree to accept by communicating the requested promise to the offeror are

bilateral contracts

All serious agreements are contracts.

false

An offer made to one person can be accepted by another.

false

An offeror's attempt to word the offer so that silence would appear to be an acceptance is valid.

false

An offer by a merchant for the sale or purchase of goods stating in a signed writing how long it is to stay open is called a __?__.

firm offer

A firm offer is binding

for a stated time for not more that three months even when nothing is paid by the offeree

Death or insanity of the offeror after the acceptance ________________ the offer.

has no effect on

Capacity to contract means that the person

has the ability, according to law, to understand his or her actions and the effect of those actions

In most cases an advertisement is considered to be a/an

invitation to make an offer

capacity to contract

legal and mental ability to understand the nature of an enforceable agreement

When the terms of acceptance must exactly match the terms contained in the offer, it is called

mirror image rules

test of the reasonable person

objective legal test used by jurors or judges to determine whether offeror has shown intent to contract

The person who makes the offer is called

offeor

The person who accepts the offer is called

offeree

revocation

offeror's act that invalidates an offer

When a minor turns 18 and decides to be bound by a contract it is called __________________ •

ratification

mirror image rule

requires that the terms in acceptance exactly match the terms in the offer

option

separate contract arising when the offeree gives offeror something for a promise to leave offer open

consideration

something of legal value given in a contract

capacity to contract

the ability to understand the terms of a contract and to understand also that failure to perform its terms can lead to legal liability

When the price is not specified in contracts between merchants for the sale of goods

the current market price is the basis

Acceptance to an offer is legally communicated when

the offeree attempts to send it

Which of the following is not one of the major requirements for a contract?

time

Contracts are the legal links between the individuals and companies producing and consuming goods and services.

true

The test of the reasonable person is an objective legal test used by jurors or judges.

true

To violate the terms of a contract is to breach a contract.

true

When the offeror communicates an offer to contract, the offeree is not required to accept it, but he or she may choose to do so.

true

Minors usually make ____________________ contracts

voidable

There is no contract

without both offer and acceptance on mutually agreed terms