Business Law Chapter 6-7 Review Questions
In order for there to be a contract - Offer, Acceptance, Consideration
1) Yes. The contract is void (there was never a contract). When a contract is void, the remedy is
putting the parties back at a position they were at before. Mary has to return the watches.
2) No. A voidable contract is a contract. Mary has possession and ownership of the watches, so she
has a valid contract with Steve. Therefore, Steve doesn’t have to return the watches to Mike.
3) The Statute of Fraud is a piece of legislation – certain types of contracts that have to be in
writing. No, they can’t use the Statute of Fraud to get out of it, because a written contract is
needed. The Statute of Fraud doesn’t say that the contract is void, it just says don’t look for the
courts to help you out if there is no written contract.
4) In a unilateral contract, the offer is offering something, and acceptance is the moment the
conduct is completed/ the contract is executed (not the moment you start looking for it).
5) No. Unless there was undue influences, etc, because you are deemed to understand the terms
of the contract before you sign it.
6) No, because they only discussed the possibility. They never finish discussing the terms of the
contract (no considerations) and no agreement was reached. It is still in negotiation.
7) Yes, provided Chris hasn’t accepted the offer yet.
8) The revocation is not effective until it is communicated (the other person know