When Entering into a Contract, Certain Conditions Must Pertain to the Offer

question 18

Multiple Choice

When entering into a contract, certain conditions must pertain to the offer. Which of the following accurately describes one of these conditions?

• A) It may only relate to the future.
• B) It must be communicated.
• C) It must be made under duress.
• D) It must be clearly understood by at least one of the parties.
• E) Its value must be at least $100.

Comprehend the significance of applied psychological research in solving real-world problems, specifically regarding improving customer experiences.

Understand the complexity of memory and the factors that influence it, including biological, psychological, and environmental aspects.

Acknowledge the multiple goals of psychological research and the importance of designing studies to address specific questions.

Understand the concept of Effective Annual Rate (EAR) and how it is calculated.

---

Definitions:

Maturity Value

The total amount payable to the holder of a financial instrument at its maturity date, including principal and any accrued interest.

360-Day Year

An accounting convention that simplifies interest calculation by assuming all months have 30 days.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Leap Years

Years that include an extra day (February 29) to keep the calendar year synchronized with the astronomical year.