Which of the Following Is False with Regard to Contract

question 156

Multiple Choice

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

• A) A counter-offer ends an offer.
• B) A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.
• C) An important criterion for determining the place of the contract is the place where the acceptance is effective.
• D) An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option.
• E) A revocation is effective only when received.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Curvilinear Fashion

Refers to a curve-shaped pattern of growth, progress, or movement in graphs or data analysis.

Variable Costs

Expenses that fluctuate in direct proportion to the amount of production or the volume of sales, including direct labor costs and raw materials.

High-Low Method

A technique in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.