Accounting 324 Quiz Answers
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Feb 20, 2024
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CHAPTER 14 QUIZ
Juan, Dwayne, and Sonia are co-workers. Juan overhears Dwayne's offer to sell an antique car to Sonia for $15,000. Under these circumstances, - Juan makes a new offer to Dwayne when he
offers to buy the car for $15,000.
How is an offeror’s intent to be bound by an agreement demonstrated? - The courts determine an offeror’s intent based upon how a reasonable person would interpret the offeror’s words and actions.
A revocation is effective ________ - when the offeree receives it
Which rule says that the terms of an acceptance must reflect the terms of an offer? - Mirror-
image rule
A valid offer includes: - offers communicated by the offeror to the offeree’s agent.
Formation of a contract begins when the party initiating the contract, called the ________ , makes an offer to another party, called the ________ - offeror; offeree
Belinda mails Harold an offer on March 2
nd
. Harold receives the offer on March 4
th
and immediately mails a rejection. On March 5
th
, Harold changes his mind and mails Belinda an acceptance. Belinda receives the acceptance on March 6
th
and the rejection on March 7
th
. Is there a contract? - Yes, the acceptance is effective when mailed on March 5
th
.
Which of the following is not generally considered a material term in an offer? - The time the offer is to remain open
CHAPTER 15 QUIZ
Regarding the enforceability of a present promise, which of the following is an accurate statement regarding past consideration? - Past consideration is no consideration at all.
When there is no dispute over the amount of debt or existence of debt, it is referred to as a:
-
liquidated debt.
The preexisting duty rule means that: - performance of a duty you are obligated to do under the law is not good consideration.
The ________ is the agreement while payment is the ________ in an unliquidated debt. - accord; satisfaction
In a(n) ________ debt, the parties either disagree about whether money is owed or dispute the amount. - unliquidated
Suppose that Brittany agrees to purchase Kathy’s computer for $700. Brittany’s payment of $700 is the ________ that Kathy will receive for her computer.
- Consideration Wanda purchases a motorcycle from her friend, Leslie. She pays Leslie $8,000. Later, Wanda realizes that the motorcycle is worth less than $4,000. If Wanda plans to sue Leslie, which of the
following statements applies? - Wanda cannot sue Leslie because the court seldom considers adequacy of consideration.
If the parties dispute either the existence of a debt or the amount of a debt, that debt is called a(n) ________ debt. - Unliquidated CHAPTER 16 QUIZ
The term ________ refers to the fact that the agreement in question is so unfair that it is void of conscience. - unconscionable
If an agreement is illegal, the contract is ________. - Void
If a person who suffers from a mental illness or defect still understands the nature of the contract and his or her obligations under the contract, which of the following will result?
-
The contract will be considered valid.
When a minor enters into a contract, the minor has which of the following rights? - The minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.
If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person’s ability to enter into a contract? - When someone has been appointed a guardian, that person’s contracts are considered void.
_____ contracts contain multiple parts that can each be performed separately and for which separate consideration is offered. - Severable In which of the following situations does an express ratification by a minor occur? - An express ratification occurs when, after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.
When is a contract voidable? - When the contract is entered into by a minor
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