Contracts must contain five basic elements to be enforceable by law: offer, acceptance, competent parties, consideration, and lawful purpose.

Question 1 Contracts must contain five basic elements to be enforceable by law: offer, acceptance, competent parties, consideration, and lawful purpose.

Question options:

                True

                False

Question 2 Partnerships require at least four or more people that agree to carry on a business.

Question options:

                True

                False

Question 3 The revocation of an offer means that the offeror has withdrawn the offer before it has been accepted.

Question options:

                True

                False

Question 4 A contract induced by fraud is a voidable contract.

Question options:

                True

                False

Question 5 A third-party beneficiary is one of the original parties to a contract.

Question options:

                True

                False

Question 6  The statute that requires certain types of contracts to be in writing is called:

Question options:

Statute of frauds

Adhesion contract

Due process statute

Restitution clause

Question 7

A realtor shows a house to a prospective buyer. When asked about the water ring on the ceiling, the realtor lies and says it was just some artwork the owners drew. This is an example of:

Question options:

Misrepresentation

Unilateral contract

Merger clause

Third party beneficiary

Question 8 A contract not in writing is:

Question options:

Oral

Unenforceable

Void

Incomplete

Question 9 The right of rescission restores the parties to the status quo existing before the contract was entered into.

Question options:

                True

                False

Question 10 In most states, the Uniform Commercial Code (UCC) governs most aspects of commercial transactions.

Question options:

                True

                False