CHAPTER 4 – WHAT IS A CONTRACT? | UPDATED 2025/2026 | QUESTIONS & VERIFIED ANSWERS | 100% CORRECT | GRADE A+

CHAPTER 4 – WHAT IS A CONTRACT? | UPDATED 2025/2026 |
QUESTIONS & VERIFIED ANSWERS | 100% CORRECT | GRADE
A+

A contract requires six elements: -

offer, capacity, legality, acceptance, consideration,
Answer-

genuine agreement

Contracts can be valid, void, voidable, or
unenforceable.
1. A contract is valid if it is legally good. -
2. Answer-2. A contract is void if it lacks one or more of the
elements of a contract.
3. A contract is voidable if either party can cancel the
contract for a legal reason.
4. A contract is unenforceable if it will not hold up in court.

Contracts can be unilateral or bilateral. -

1. A bilateral contract is when both parties promise to
Answer-

do something.
3. A unilateral contract is when one party promises to do
something only if the other party does something.

A contract can be express or implied. -

1. An express contract is a contract stated in words
Answer-

and may be either written or oral.
2. An implied contract comes about from the actions of the
parties.

To be valid, an offer must be: made seriously, definite