UNIT 15. Contracts

1. Complete the sentences, using the appropriate words from the box:

Infers; elements; cosign; competent; rati­fied; back out of; valid; remedy; affect; terms; enforceable; agreement.

1. A contract is an … between two or more persons to exchange something of value.

2. If one party to a contract does not carry out the promise, the other party is entitled to a ….

3. To protect yourself as a consumer, it is important to understand how contracts are formed and how they … your rights.

4. A legally binding contract must have certain ….

5. The two parties must agree exactly to the … of the con­tract.

6. The law … agreement from certain actions, such as signing a contract or beginning to carry out the terms of the bargain.

7. In every … contract, there must also be an exchangeof consideration.

8. People entering into a contract must be legally … to make contracts.

9. Agreements to do something illegal or against public policy are not … in court.

10. Be sure you understand and agree with all the terms before you accept; other­wise, it may be too late to … the deal.

11. Many stores require minors to have a parent or other adult … any major contract.

12. In most states, a minor who continues making payments on a con­tract after reaching the age of majority is considered to have… the contract.

2. Are the statements true (+) or false (-)? Correct the false statements.

1. If one party to a contract carries out the promise, the other party is entitled to a remedy.

2. To have mutual agree­ment, it is enough for the parties to say “we agree.”

3. The values of the items being exchanged do not have to be the same.

4. People entering into a contract can be mentally ill or intoxicated.

5. Agreements to do something illegal or against public policy are also enforceable in court.

6. You should be quick to enter into a contract.

7. Minors may not make contracts.

8. The adult cosigner is responsible for making payments if the minor backs out of the deal.

9. Once the contract has been ratified, it can no longer be canceled.