Law Chapter 5 Exam

An oral contract is not enforceable at law.

• True
• False

Advertisement in newspapers, price tags, and signs in store windows are treated by the law as invitations to negotiate.

• True
• False

An acceptance of an offer to sell goods may not change the terms of the offer if both offeror and offeree are nonmerchants

• True
• False

A valid contract must contain only four of the six elements of a contract.

• True
• False

Consideration is the legal ability to enter a contract.

• True
• False

The taking back of an offer by the offeror is 

• revocation
• rejection
• cancellation
• consideration

A contract that amounts to nothing and has o legal effect is 

• unenforceable
• voidable
• void
• unilateral

A contract is ___________ if it can be canceled by one of the parties.

• void
• voidable
• enforceable
• unenforceable

A contract that contains a promise by bother parties is 

• express
• implied
• bilateral
• unilateral

To be effective, an offer must be communicated to the 

• attorney
• offeree
• lender
• offeror