Business Law Chapter 6

Genuine assent is one of the major requirements for a contract.

True

An unaccepted offer may be terminated by a:

counteroffer

If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement is called a counteroffer.

False

Which of the following terminates an offer?

offeree's clear rejection

All contracts must be in writing to be enforceable.

False

________ is one of the major requirements for a contract.

Contractual capacity

A contract in which performance alone is acceptance is termed a unilateral contract.

True

What circumstance might render an acceptance invalid?

The acceptance does not match the offer.

An unaccepted offer may be terminated by the rejection of the:

offeree

Firm offers apply to merchants who make offers in writing that contain a term stating how long the offer is to stay open.

True

Offers that require the offeree to accept by communicating the requested promise to the offeror are:

bilateral contracts.

Advertisements in newspapers, radio, television, and direct mailings that include a price for the product are always offers.

False

Reward offers are always based on a:

unilateral contract.

The Uniform Commercial Code makes firm offers binding for the stated period of time in the offer but not to exceed:

three months.

What three things are essential for an offer to contain?

the price, subject matter, and quantity

The current market price is used when the price is:

not specified in contracts between merchants for the sale of goods.

If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement is called a(n):

option

If an offeree alters a term in the original offer and sends it back to the original offeror, the result is a counteroffer.

True

All economic activity is based upon legally enforceable agreements between parties. These agreements are known as:

contracts

When the current market price is not specified in a contract between merchants for the sale of goods, but the current market price is understood to be the basis of the contract, the price term is said to be:

implied