Business and Personal Law

Chapter 4: What Is a Contract?

Self Check Answers

Section 4.1
1. A valid contract is one that is legally binding. One that is void has no legal effect. A voidable contract is one that may be voided by one or more parties if the party so chooses.
2. An express contract involves words while an implied contract does not.
3. A unilateral contract is a one-sided contract in which one party makes a promise in exchange for an act.

Section 4.2
1. serious intent, clear and definite terms, and communication to the offeree
2. unconditional and must follow the rules regarding the method of acceptance
3. upon revocation by the offeror, on rejection by the offeree, when a counter-offer is made, after the expiration of a set period of time, and/or the death or insanity of the offeror