Contracts

Question 1

What is a Contract?

Answer 1

A legally binding agreement between multiple parties whereby something is promised to be done or given.

Question 2

A contract can be:

Answer 2

• Written
• Verbal
• Implied

Question 3

What is the advantage of a written contract?

Answer 3

Either party cannot dispute the existence of the contract or its content

Question 4

Define what an Offer is

Answer 4

An Offer is an indication or willingness to enter into a contract and the person making the offer is the offer or and the person receiving it is the offeree.

Question 5

Five forms an offer can come in are:

Answer 5

• A letter
• A fax
• An e-mail
• A conversation
• Someone’s behavior

Question 6

Termination can be:

Answer 6

• Rejection by offeree
• Death or insanity by either party
• Counteroffer
• Destruction of a key element

Question 7

Define what Acceptance is

Answer 7

When the offeree agrees to the offer and accepts the specific terms the offer made

Question 8

Acceptance can be communicated by these ways:

Answer 8

• Written
• Verbal
• Conduct

Question 9

What does it mean that acceptance must be unqualified?

Answer 9

The offeree cannot introduce new terms to the contract and there is no room for doubt.

Question 10

Define what Consideration is

Answer 10

The exchange of a promise or action in the form of goods, service or money between the parties.

Question 11

The rules of a Consideration are:

Answer 11

• It must be real
• It must be possible
• It need not be adequate
• It must not be past

Question 12

Intention to Create Legal Relations is…

Answer 12

An intention to enter into a legally binding agreement or contract