Question

Business Law - Contracts

1.         All agreements made between two consenting adults are legally enforceable.

            a. True

            b. False

2.         The essential elements of contract formation are:

            a. mutual assent, consideration, capacity, and fairness

            b. consideration, legality, capacity, and enforceability

            c. legality, capacity, a written document, signatures by all parties

            d. mutual assent, capacity, consideration, legality

            e. none of the above

3.         Generally speaking, oral contracts are just as legally binding as written contracts.

            a. True

            b. False

4.         Mutual assent will be established as long as at least one party to an agreement manifests a willingness to be bound by his or her promise.

            a. True

            b. False

5.         The contractual theory that requires us to examine whether a reasonable person in the position of an offeree would understand that an offer has been made is called:

            a. The Binding Theory of Contracts

            b. The Unified Theory of Contracts

            c. The Subjective Theory of Contracts

            d. The Objective Theory of Contracts

            e. None of the above

6.         To accept an offer, an offeree’s acceptance can differ from the terms offered as long as the offeror still gets most of what he or she asked for.

            a. True

            b. False

7.         The only responses to an offer that have a legal effect are rejection, acceptance, and counter offers.

            a. True

            b. False

Answer 1

Solution:

1--- All agreements made between two consenting adults are legally enforceable --- FALSE

We need to understand the meaning of agreement and legally enforceable here.

Every promise and every set of promises, forming the consideration for each other is called Agreement.

Agreement = Offer/Proposal + Acceptance

Enforceability by law – An agreement to become a contract must give rise to a legal obligation which means a duty enforceable by law.

Law of contract deals with only such legal obligations which was resulted from agreements. Such obligation must be contractual in nature. However some obligations are outside the purview of the law of contract on which legal enforceability is not applicable.

Hence the statement is FALSE.

2 -- The essential elements of contract formation are: --- The correct option is a. mutual assent, consideration, capacity, and fairness

The essential elements of contract to make a valid contract are:

-- Proper offer and proper acceptance with intention to create legal relationship

-- Lawful Consideration and lawful object

- Capacity to contract

- free concent

- Certainity of meaning (fairness)

Hence option a is correct.

3 – the statement is false.

Written contracts are more suitable to binding legally to the parties of contract.

4 – False

Mutual assent means the parties of the contract must agree upon the same thing in the same sense.

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for remaining parts.