a proposal by one party to another intended to create a legally binding agreement is called an _________.
offer
100
When a contract is missing one of the six elements, it would be considered _________.
Void
100
Offers must be made with _______________, meaning that they must be made with the intention of entering into a legal obligation.
Serious intent
100
When do contracts come into existence and become considered legally binding?
At the time the acceptance takes place.
100
any agreement enforceable by law is called a ___________.
contract
200
A ______________________ means that an agreement is true and genuine: a valid offer is met by a valid acceptance.
genuine agreement
200
Why might a contract between two minors be voidable?
This contract could be voidable by either of them because minors have the right to get out of contracts.
200
__________ are invitations to deal, trade, or make an offer. Store fliers and advertisements are considered this rather than a binding contract.
Invitations to negotiate
200
______________ is the taking back of an offer by the offeror.
Revocation
200
______________ is the thing of value promised to one party in a contract in exchange for something else of value promised by the other party.
consideration
300
________ is the second party's unqualified willingness to go along with the first party's proposal.
acceptance
300
If a contract considers any agreement to do something illegal, it would be considered __________.
void or voidable.
Contracts cannot supersede terms of existing state or federal laws.
300
The ____________________ means that the terms stated in the acceptance must exactly mirror or match the terms of the offer.
mirror image rule
300
True or False.
The death of one party in a contract terminates the contract.
False.
Death can terminate an offer, however, death does not end a contract, except for contracts related to personal services.
300
Parties are not allowed to enforce contracts that involve illegal acts. Some illegal contracts involve agreements to commit a crime or a tort. Others involve activities made illegal by statutory law.
This description represents what element of a contract?
Legality
400
______________ means one's legal ability to enter a contract.
capacity
400
A _______________________ is a contract statement that may be oral or written.
An express contract
400
What are the three requirements of an offer?
1. Made seriously, 2. Definite and Certain, 3. Communicated to the offeree
400
True or False.
An offer can be revoked any time before it is accepted.
True.
The offeror can rescind their offer any time before the second party responds to the offer with an acceptance.
Revocation becomes effective when it is received by or communicated to the offeree.
400
An _____________________ is a contract that comes about from the actions of the parties. They are often entered into without exchanging a single word.