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.

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling similar but not identical products, with some control over prices.

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit in the market.

Herfindahl Index

A measure of the size of companies in relation to the industry and an indicator of the amount of competition among them.

Market Shares

The proportion of total sales or revenue in a market accounted for by a particular company, indicating its dominance in the market.