Which of the Following Is False with Regard to Contract

question 118

Multiple Choice

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

• A) To form a contract, there must be an offer that is accepted unconditionally.
• B) A contract is unenforceable if it is required to be evidenced in writing under the Statute of Frauds and is not.
• C) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate, i.e. fair, even if there is no evidence of fraud, duress, undue influence, or mental incapacity.
• D) A contract for a $50,000 boat does not have to be evidenced in writing to be a valid contract.
• E) An exchange of promises can be consideration adequate to form a contract.

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Definitions:

Annual Rate

Typically refers to the interest rate for a whole year, often applied in terms of loans, investments, or savings.

Invests

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Present Value

The present value of a sum of money or sequence of cash flows expected in the future, calculated using a certain rate of return.

Discounting

A financial process of determining the present value of a payment or a series of payments that will be made in the future.