If the Formation of a Contract Is Affected by Mistake

question 18

Multiple Choice

If the formation of a contract is affected by mistake, which required element of a contract is not present?

• A) Offer
• B) Acceptance
• C) Consideration
• D) Intent
• E) Legality

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Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or demands.

Market Power

The ability of a company or group of companies to control prices and total market output in an industry or sector.

Elastic Demand

Describes a market scenario where the demand for a product significantly changes in response to changes in the price of that product.

Less Elastic

Less elastic refers to a demand or supply that is relatively unresponsive to changes in price compared to a perfectly elastic curve.