Chapters 5&6

Question 1

any agreement enforceable by law.

Answer 1

contract

Question 2

a proposal by one party to another intended to create a legally binding agreement.

Answer 2

offer

Question 3

the second party’s unqualified willingness to go along with the first party’s proposal.

Answer 3

acceptance

Question 4

a valid offer is met by a valid acceptance.

Answer 4

genuine agreement

Question 5

the legal ability to enter a contract.

Answer 5

capacity

Question 6

the exchange of things of value.

Answer 6

consideration

Question 7

the final element of contract.

Answer 7

leaglity

Question 8

has no legal effect.

Answer 8

void contract

Question 9

when a party to a contract is able to void or cancel a contract for some legal reason.

Answer 9

voidable contract

Question 10

the court will not uphold, generally because some rule of law, such as the statute of limitations.

Answer 10

unenforceable contract

Question 11

stated in words and may be either oral or written.

Answer 11

express conract

Question 12

comes about from the actions of the parties.

Answer 12

implied contract

Question 13

contains a promise by only one person to do something, if and when the other party performs some act.

Answer 13

unilateral contract

Question 14

contains two promises.

Answer 14

bilateral contract

Question 15

advertisements in newspapers, magazines, and catalogs.

Answer 15

invitation to negotiate

Question 16

acceptance must not change the terms of the original offer in any way.

Answer 16

mirror image rule

Question 17

the original offeror not obligated to go along, and no contract results.

Answer 17

counteroffer

Question 18

the taking back of an offer by the offeror.

Answer 18

revocation

Question 19

or refusal, of an offer by the offeree brings the offer to an end.

Answer 19

rejector

Question 20

a deliberate deception intended to secure an unfair or unlawful gain.

Answer 20

fraud

Question 21

cancel, the contract, or you may sue for damages.

Answer 21

rescind

Question 22

the fact that is important; it matters to one of the parties.

Answer 22

material fact

Question 23

passive fraud or nondisclosure, and it may be just as fraudulent as actively deceiving an innocent party.

Answer 23

concealment

Question 24

an untrue statement of facts, and the law gives you the right to rescind the contract.

Answer 24

misrepresentation

Question 25

an error on the part of one of the parties to the contract.

Answer 25

unilateral mistake

Question 26

both parties to a contract are mistaken about an important fact (mutual mistake).

Answer 26

bilateral mistake

Question 27

overcoming a person’s will by use of force or by threat of force or bodily harm.

Answer 27

duress

Question 28

consists of threats to a person’s business or income that cause him or her to enter a contract without real consent.

Answer 28

economic duress

Question 29

occurs when a person uses unfair and improper persuasive pressure to force another person to enter into an agreement

Answer 29

undue influence

Question 30

What is a contract?

Answer 30

A contract is an agreement between two or more parties that legally binds them.

Question 31

What are the elements of a contract?

Answer 31

``` offer acceptance genuine agreement capacity consideration legality ```

Question 32

What are the differences between valid void, voidable, and unenforceable contract?

Answer 32

Valid - Solid, good, legally enforced contract. Void - bad contract, missing elements. Voidable - good legal; valid contract but one party or other can make it a void contract. Unenforceable - a contract that cannot be carried out due to violation of law.

Question 33

What is the difference between an expressed and implied contract?

Answer 33

Expressed - contract clearly stating action. | Implied - carry contract out without saying it, not expressing it in words.

Question 34

Explain the difference between Unilateral and Bilateral Contracts?

Answer 34

Unilateral contains one promise and bilateral contains two promises.

Question 35

What are the requirements of an offer?

Answer 35

serious intent definite and certain communication on the offeree

Question 36

What is the difference between an offer and an invitation to negotiate?

Answer 36

The difference is that an invitation to negotiate asks the other person to make an offer. If you make an offer your taking the first step.

Question 37

What are the requirements of an acceptance?

Answer 37

unconditional | has to follow certain rules

Question 38

What is the difference between an acceptance and a counter offer?

Answer 38

The difference between an acceptance is unconditional and a counter offer is if your changing terms.

Question 39

When is an offer terminated?

Answer 39

revoke change terms timelimit