CHAPTER 7 EXAM REVIEW Day 1 WHAT ARE

CHAPTER 7 EXAM REVIEW Day 1

WHAT ARE? • The 6 parts of a contract? • Answer (Offer and acceptance, genuine assent, consideration, capacity, legality and writing)

WHO ARE? • The 2 parties involved in a contract? • Answer (Offeror-Makes offer and offeree- Person offer is made it)

WHAT ARE? • The 3 parts to a valid offer? • Answer (1. Serious Legal, Terms definite and complete and communicated)

WHAT ARE? • The 3 parts to a valid acceptance? • Answer (1. Offeree only accepts, Terms match/ Mirror image rule and communicated)

WHY ARE? • Advertisements not usually offers? • Answer (Ads are invitations to an offer, meaning, the customer makes offers to the store once they accept)

WHAT ARE? • 6 ways an offer Terminates? • Answer (Revocation by Offeror, time stated, reasonable time, rejection death/insanity and counteroffer)

WHO DEALS WITH? • Business laws? • Answer (UCC, or Uniform Commercial Code)

HOW ARE OFFERS KEPT OPEN IN? • Common law based agreements? • Answer (The Offeree must offer to give an “Option”, which is collateral/Money to buy time to decide)

CAN? • An offer be worded so silence can be used as acceptance? • Answer (No, not if you are tricking the person)

IS THIS EXAMPLE UNILATERAL OR BILATERAL ACCEPTANCE? • I go to the store and buy some socks and pay for them • Answer (Bilateral, because both parties promise something to form the agreement)

IS THIS EXAMPLE UNILATERAL OR BILATERAL ACCEPTANCE? • Agreeing to complete work on my home when it needs to be done • Answer (Unilateral, because ONE party accepts based on performance)

WHAT IS MORE COMMON? • Bilateral acceptances or unilateral acceptances • Answer (Bilateral, because its more common to have a promise for a promise)

WHEN ARE? • Contract acceptances effective • Answer (Unless stated otherwise, when sent! Offeror can state when they are received, so they get them by a certain date)

AND? • Questions on CH 7? • Answer (Exam Part I Wednesday)