Contract Law

Which of the following is an example of a contract that businesses might enter into?

• Employment agreement

• Birthday invitation

• Grocery list

• Personal diary entry

What is the definition of a contract in contract law?

• A legally enforceable agreement

• A written document signed by two parties

• A verbal agreement only

• An agreement that does not require legal enforcement

Which of the following contracts is legally binding and meets all legal requirements?

• Void contract

• Voidable contract

• Valid contract

• Unenforceable contract

What type of contract cannot be enforced by law?

• Valid contract

• Void contract

• Voidable contract

• Written contract

What does 'Capacity' refer to in the context of a valid contract as shown in the image?

• Financial status of the parties

• The legal ability to enter a contract

• The number of parties involved

• The length of the contract

What is an offer in the context of a business agreement?

• A casual conversation about potential terms

• A definite and unequivocal statement of willingness to be bound on specified terms

• A preliminary discussion seeking interest

• A formal written contract signed by both parties

Which of the following is NOT considered an offer?

• A display of goods in a shop

• A written proposal sent to another company

• An advertisement in a newspaper

• A verbal agreement during a meeting

How can an offer be terminated?

• By acceptance of the offer

• By the offeree making a counter-offer

• By the offerer increasing the price

• By mutual agreement to extend the offer period

What happens when the time limit of an offer expires?

• The offer automatically renews

• The offer becomes legally binding

• The offer is terminated

• The offer must be reviewed by legal counsel

What is required for the acceptance of an offer to form a legally binding contract?

• The acceptance must be ambiguous and conditional.

• The acceptance must be firm and unconditional.

• The acceptance must include at least one new term.

• The acceptance must be verbal only.