Business Contract Quiz

What are four elements of a business contract?

• offer, acceptance, consideration, intention to create illegal relations

• offer, acceptance, consideration, legality

• offer, acceptance, consideration, intention to create social relations

• offer, acceptance, consideration, intention to create personal relations

Which type of contract is formed when both parties exchange promises?

• void contract

• unilateral contract

• bilateral contract

• executed contract

What is the term for the act of one party making an offer to another party?

• Proposal

• Negotiation

• Offer

• Agreement

What is consideration in a business contract?

• Consideration is a legal term for the termination of a contract.

• Consideration is a type of penalty imposed on a party who breaches a contract.

• Consideration is something of value that is exchanged between parties in a contract.

• Consideration is a clause in a contract that allows one party to change the terms without notice.

Which type of contract is formed when one party makes a promise in exchange for an act from the other party?

• bilateral contract

• void contract

• executed contract

• unilateral contract

What is the legal term for the ability of a person to enter into a contract (sound mind)?

• competence

• capacity

• incapacity

• liability

What is the term for the act of accepting an offer in a business contract?

• agreement

• rejection

• negotiation

• acceptance

Which type of contract is formed when one party makes a promise in exchange for a promise from the other party?

• Executed contract

• Void contract

• Bilateral contract

• Unilateral contract

What is the term for the exchange of something of value in a business contract?

• consideration

• transaction

• compensation

• payment

What is the legal term for the mental ability of a person to understand the terms of a contract?

• competence

• intelligence

• capacity

• capability