Final Exam Vocabulary: Business & Employment Law ACTUAL QUESTIONS AND CORRECT ANSWERS

Final Exam Vocabulary: Business &
Employment Law ACTUAL QUESTIONS
AND CORRECT ANSWERS
Offer - CORRECT ANSWERS✅✅A definite promise to be bound on specific terms, made
by the offeror to the offeree.


Acceptance - CORRECT ANSWERS✅✅An unqualified agreement to the exact terms of the
offer.


Consideration - CORRECT ANSWERS✅✅The value exchanged between parties in a
contract. Must be sufficient but not necessarily adequate.


Invitation to Treat - CORRECT ANSWERS✅✅An invitation for others to make an offer,
not an offer itself (e.g. shop displays, advertisements).


Counter-Offer - CORRECT ANSWERS✅✅A response to an offer which introduces new
terms and thereby rejects the original offer.


Misrepresentation - CORRECT ANSWERS✅✅A false statement of fact that induces a party
to enter into a contract.


Void Contract - CORRECT ANSWERS✅✅A contract that has no legal effect from the
beginning.


Voidable Contract - CORRECT ANSWERS✅✅A valid contract that may be legally avoided
or rescinded by one party.


Frustration - CORRECT ANSWERS✅✅When an unforeseen event renders contractual
obligations impossible or radically different.


Breach of Contract - CORRECT ANSWERS✅✅Failure to perform as specified in the
contract without lawful excuse.