Which of the Following Is True of Intent to Form

question 44

Multiple Choice

Which of the following is true of intent to form a contract?

• A)Intent is determined based on the specific motivations of the offeror or offeree,including hidden motivations.
• B)An offeror must show intent to be bound by the offeree's acceptance.
• C)Intent is a required element of an offer or acceptance only if a contract is a contract for the sale of goods.
• D)Intent Is not a required element of an offer or acceptance to form a contract.
• E)Intent is assessed by considering proof of an offeree or offeror's internal thought process.

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Definitions:

Market Rate

The prevailing price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Callable Bonds

Obligations that give the issuer the option to redeem them ahead of their final maturity, at a set price.

Bond Indenture

A legal document specifying the terms and conditions under which a bond has been issued, including the interest rate, maturity date, and covenants.