lesson 6 - contracts

Question 1

contract

Answer 1

a legally binding agreement between 2 or more parties

Question 2

3 essential elements of a simple contract

Answer 2

1. offer
2. acceptance
3. consideration

Question 3

what does offer refer to in a simple contract?

Answer 3

• proposal made by one party

Question 4

what does acceptance refer to in a simple contract?

Answer 4

• agreement made by the other party

Question 5

what does consideration refer to in a simple contract?

Answer 5

• each party gives something of value (eg. money or service)

Question 6

what are legal scenarios of contracts?

Answer 6

• contracts can be accepted verbally or through actions
• written agreements and deposits strengthen a contract
• mistaken pricing does not obligate the seller to accept