Which of the Following Is False with Regard to Contract

question 26

Multiple Choice

Which of the following is false with regard to contract law?

• A) An exchange of promises can be consideration adequate to form a contract.
• B) To form a contract, there must be an offer that is accepted unconditionally.
• C) A contract for a $50,000 boat does not have to be evidenced in writing to be a valid contract.
• D) A contract is unenforceable if it is required to be evidenced in writing under the Statute of Frauds and is not.
• E) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate (i.e. fair), even if there is no evidence of fraud, duress, undue influence, or mental incapacity.

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Definitions:

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable that a company does not expect to collect.

Uncollectible Receivables

Amounts due from customers that are considered unattainable and likely to never be collected.

Adjusting Entry

An adjusting entry is a journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period, ensuring the accounts comply with the accrual basis of accounting.