Contracts

An expressed contract

• must be oral and written

• stated in words and may be either oral or written

• can only be stated in words

• can only be written

The thing of value promised to be exchanged by parties is known as....

• Consideration

• Capacity

• Offer

• Acceptance

Not all agreements are contracts, but...

• All contracts ARE agreements

• All agreements are legally binding

• An agreement can be changed after the contract is made

• All offers are invitations to negotiate

If a contract lacks one or more required elements, it is considered....

• Valid

• Void

• Voidable

• Illegal

Jim hires Pam to paint a mural for $200. He gives her $100 up front, she paints the mural and gets the other $100. This is an example of a(n):

• Express contract

• Offer and acceptance

• Bilateral contract

• Unilateral contract

An express contract is one that is:

• Taking place in less than a year

• Quick to perform

• Created by the actions of the parties

• Stated in words or writing

Which of the following is a characteristic of a bilateral contract?

• A) It involves two parties making promises to each other

• B) It involves only one party making a promise

• C) It is always written

• D) It is always oral

In contract law, what is the term for the party who makes an offer?

• A) Offeree

• B) Offeror

• C) Promisor

• D) Promisee

What is the legal term for the cancellation of a contract?

• A) Revocation

• B) Rescission

• C) Rejection

• D) Ratification

Which of the following is NOT a necessary element of a valid contract?

• A) Offer

• B) Acceptance

• C) Consideration

• D) Witness