Contracts & Warranties

Front

A contract is

Back

an agreement between two or more persons to exchange something of value.

Front

What is a consideration?

Back

something of value

Front

Which of the following is a characteristic of an offer? Options: The offer is made to a specific person., The seller accepts the price asked for by the buyer., The offer is not directed at anyone in particular., The offer establishes a legally binding contract.

Back

The offer is made to a specific person.

Front

Which of the following is an example of consideration? Options: money, the agreement to have another birthday, a worthless piece of trash, for a lifeguard to promise a swimmer to rescue him if he gets in trouble;

Back

money

Front

If Gene was intoxicated when he signed a contract, the contract is

Back

not enforceable.

Front

What is a valid acceptance to a contract? Options: The person orally agrees to pay the offered price., The person says that she will think about it overnight., The person asks for a lower price., The person states that she is able to pay the offered price.

Back

The person orally agrees to pay the offered price.

Front

Minors: can legally make contracts., cannot legally make contracts., can force sellers to enter into contracts with them., can only enter into legal contracts with an adult cosigner.

Back

can legally make contracts.

Front

Jane runs away from home and stays at a motel for three nights. Since she is a minor, does she have to pay for the motel?

Back

does have to pay for the motel since shelter is a necessity.

Front

A contract for _____ must be in writing to be enforceable.

Back

the sale of land

Front

Aidan sells some stolen CDs for Roger. Aiden knows the CDs are stolen. Aiden refuses to give the money to Roger. Roger can:

Back

cannot enforce the contract because the contract is illegal.