CPCU 410 - CHAPTER 3 EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
Offer
A promise that requires some action by the intended recipient to make an agreement.
Counteroffer
A proposal an offeree makes to an offeror that varies in some material way from the
original offer, resulting in rejection of the original offer and constituting a new offer.
Substantial Performance
The performance of the primary, necessary terms of an agreement.
Acceptance
The assent to an offer that occurs when the party to whom an offer has been made
either agrees to the proposal or does what has been proposed.
Forbearance
The act of giving up or the promise to give up a legal right.
Duress
The use of restraint, violence, threats of violence, or wrongful pressure to compel a
party to act contrary to his or her wishes or interests.
Consideration
Something of value or bargained for and exchanged by the parties to a contract.
Accord and Satisfaction
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
Offer
A promise that requires some action by the intended recipient to make an agreement.
Counteroffer
A proposal an offeree makes to an offeror that varies in some material way from the
original offer, resulting in rejection of the original offer and constituting a new offer.
Substantial Performance
The performance of the primary, necessary terms of an agreement.
Acceptance
The assent to an offer that occurs when the party to whom an offer has been made
either agrees to the proposal or does what has been proposed.
Forbearance
The act of giving up or the promise to give up a legal right.
Duress
The use of restraint, violence, threats of violence, or wrongful pressure to compel a
party to act contrary to his or her wishes or interests.
Consideration
Something of value or bargained for and exchanged by the parties to a contract.
Accord and Satisfaction
