Under the Common Law, a Contract Cannot Be Formed Until

question 91

Multiple Choice

Under the common law, a contract cannot be formed until an offer is clearly accepted. Under UCC Article 2:

• A) a contract "must be notarized" and must "show sufficient agreement" between the parties
• B) a contract "may be made only in the presence of a judicial official"
• C) a contract "may be made even without sufficient agreement" between the parties
• D) a contract is not formed until an offer is clearly accepted
• E) none of the other choices are correct

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Definitions:

Operating Activities

The section of a business's cash flow statement that accounts for its core business operations' cash inflows and outflows, involving receipts from sales, payments to suppliers, and payroll.

Prepaid Expenses

Costs that have been paid in advance for goods or services to be received in the future, recorded as an asset on the balance sheet.

Net Income

The remaining profit after deducting all operating expenses, taxes, and additional costs from the total revenue.

Indirect Method

The indirect method is a way of calculating cash flows from operating activities by starting with net income and adjusting for non-cash transactions.