BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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misrepresentation
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genuine agreement
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legality
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capacity
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Detailed explanation-1: -1 Genuine Agreement If the offeror makes a valid offer, and the offeree has made a valid acceptance, then a genuine agreement has been reached. The courts describe this type of agreement as “a meeting of the minds.”
Detailed explanation-2: -An offer does not create any legal obligations, but after the offer is accepted it becomes a promise. And a promise is irrevocable because it creates legal obligations between parties. An offer can be revoked before it is accepted. But once acceptance is communicated it cannot be revoked or withdrawn.
Detailed explanation-3: -➢ genuine agreement (genuine assent or mutual assent)→exists when consent is not clouded by fraud, misrepresentation, duress, undue influence, or mistake. ➢ If genuine agreement is missing, the victim may cancel or disaffirm the contract because the contract is voidable.
Detailed explanation-4: -“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.” 1. Acceptance must be absolute and unqualified. 2.