BUSI 301 QUESTIONS AND ANSWERS LATEST UPDATE ALREADY
GRADED A+
Genuine Assent
The knowing, voluntary, and mutual approval of the terms of a contract by each party; required for a
contract to be enforceable
Statute of Frauds
The law governing which contracts must be in writing in order to be enforceable
Mutual Assent
For the formation of a valid contract, the broad underlying requirement that the parties must reach an
agreement using a combination of offer and acceptance and that that assent must be genuine
Offer
A promise of commitment to do (or refrain from doing) a specified activity
Acceptance
The offeree's expression of agreement to the terms of the offer. The power of acceptance is created by a
valid offer
Objective Intent
For an offer to have legal effect, the the requirement that, generally, the offeror must have a serious
intention to become bound by the offer and that the terms of the offer must be reasonably certain
Revocation
An action terminating an offer whereby the offeror decides to withdraw the offer by expressly
communicating the revocation to the offeree prior to acceptance
Rejection
An action terminating an offer whereby the offeree rejects the offer outright prior to acceptance
Counteroffer
An action terminating an offer whereby the offeree rejects the original offer and proposes a new offer
with different terms
Operation of Law
Termination of an offer by the occurrence of certain happenings or events, which generally include lapse
of time, death or incapacity of the offeror or offeree, destruction of the subject matter of the contract
prior to acceptance, and supervening illegality
Irrevocable Offers
GRADED A+
Genuine Assent
The knowing, voluntary, and mutual approval of the terms of a contract by each party; required for a
contract to be enforceable
Statute of Frauds
The law governing which contracts must be in writing in order to be enforceable
Mutual Assent
For the formation of a valid contract, the broad underlying requirement that the parties must reach an
agreement using a combination of offer and acceptance and that that assent must be genuine
Offer
A promise of commitment to do (or refrain from doing) a specified activity
Acceptance
The offeree's expression of agreement to the terms of the offer. The power of acceptance is created by a
valid offer
Objective Intent
For an offer to have legal effect, the the requirement that, generally, the offeror must have a serious
intention to become bound by the offer and that the terms of the offer must be reasonably certain
Revocation
An action terminating an offer whereby the offeror decides to withdraw the offer by expressly
communicating the revocation to the offeree prior to acceptance
Rejection
An action terminating an offer whereby the offeree rejects the offer outright prior to acceptance
Counteroffer
An action terminating an offer whereby the offeree rejects the original offer and proposes a new offer
with different terms
Operation of Law
Termination of an offer by the occurrence of certain happenings or events, which generally include lapse
of time, death or incapacity of the offeror or offeree, destruction of the subject matter of the contract
prior to acceptance, and supervening illegality
Irrevocable Offers
