exam 2 ch. 10,11,12 Question and
answers correctly solved
What elements are required for an offer to be effective under the common
law? Choose 3 answers.
- The offeror must intend to be bound by the offer.
-The terms of the offer must be reasonably definite so that all parties
understand them.
-The offer must be communicated to the offeree.
What conditions must be met for an offer to be legally accepted? Choose 2
answers.
- Acceptance must be unequivocal with no requests for changes in the offer.
- It may only be accepted by the intended offeree or the offeree’s agent.
What factors are used to judge if consideration is adequate to ensure a fair
bargain? Choose 2 answers.
- Promises must be made with voluntary consent.
- Promises exchanged may not be a preexisting duty.
, What is the term for a contract agreement in which an offeror promises to pay
after the occurrence of a specified act, and the offeree is not required to
respond in words?
unilateral contract
How may a revocable offer effectively be revoked? Choose 2 answers.
- The offeror may take an action that contradicts the offer and make that
known to the offeree.
- The offeror may withdraw the offer with a clear expression.
Under the UETA, if a party does not follow the security procedures and then
fails to detect an error, what happens?
The party who followed the procedures can avoid the effect of the error.
What type of contract exists when at least one party has the option of
canceling it?
voidable
answers correctly solved
What elements are required for an offer to be effective under the common
law? Choose 3 answers.
- The offeror must intend to be bound by the offer.
-The terms of the offer must be reasonably definite so that all parties
understand them.
-The offer must be communicated to the offeree.
What conditions must be met for an offer to be legally accepted? Choose 2
answers.
- Acceptance must be unequivocal with no requests for changes in the offer.
- It may only be accepted by the intended offeree or the offeree’s agent.
What factors are used to judge if consideration is adequate to ensure a fair
bargain? Choose 2 answers.
- Promises must be made with voluntary consent.
- Promises exchanged may not be a preexisting duty.
, What is the term for a contract agreement in which an offeror promises to pay
after the occurrence of a specified act, and the offeree is not required to
respond in words?
unilateral contract
How may a revocable offer effectively be revoked? Choose 2 answers.
- The offeror may take an action that contradicts the offer and make that
known to the offeree.
- The offeror may withdraw the offer with a clear expression.
Under the UETA, if a party does not follow the security procedures and then
fails to detect an error, what happens?
The party who followed the procedures can avoid the effect of the error.
What type of contract exists when at least one party has the option of
canceling it?
voidable
