Question

1. The mailbox rule provides that an acceptance is valid when it is received by the offeror. True or False

2. A(n) ________ contract is, in effect, not a contract at all.

Multiple Choice

• voidable

• executory

• implied

• executed

• void

3. Consideration is defined as ________.

Multiple Choice

• being cordial in the negotiation of contracts

• refraining from unethical behavior in the negotiation of contracts

• being both cordial and refraining from unethical behavior in the negotiation of contracts

• a bargained-for exchange

• a contract negotiated in person rather than by telephone or e-mail

4. A ________ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents.

Multiple Choice

• commercial bond

• letter of credit

• letter of acknowledgement

• negotiated credit instrument

• recognizance

Answer 1

1.The correct answer is :True

According to the mailbox rule,an acceptance is considered to be valid when it is received by the offeror via mail,email etc.

2.The correct answer is :void

A void contract is one that cannot be legally enforced and hence is not a contract at all.

3.The correct answer is :a bargained for exchange

In a contract ,a consideration is a benefit that is agreed upon and bargained between two parties.Generally,in a contract one consideration is exchanged for another consideration by means of bargaining between the two parties.

4.The correct answer is :negotiated credit instrument

A negotiated credit instrument is an agreement where a person agrees to pay the sum of money to the holder of the instrument based on a condition.