An Enforceable Contract Requires (1) That the Parties Be Legally

question 3

Multiple Choice

An enforceable contract requires (1) that the parties be legally competent to enter into a contract; (2) a valid offer and acceptance which results in a meeting of the parties' minds concerning the subject of their contract; (3) the exchange of legal consideration, plus:

• A) that the contract be in writing.
• B) that the parties were not intoxicated when the contract was made.
• C) that money be given to bind the promisor.
• D) that the acceptance of the offer must be qualified.
• E) none of the above.

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Definitions:

Economic Profits

The surplus remaining after deducting both explicit and implicit costs from total revenues, often indicating the profitability beyond normal returns.

Competitive Market

A market structure characterized by numerous buyers and sellers, such that no single market participant has the power to significantly influence prices.

Market Price

The current price at which a good or service can be bought or sold.

Total Revenue

The total income generated by the sale of goods or services by a company.