1. is the ability of a party to understand that a contract is being made and to understand its general nature. A. Agreement B. Consideration C. Legality of Purpose D. Capacity 2. is the consent by the parties to a contract's terms that manifests their mutual assent to the same bargain. This is evidenced by an offer and an acceptance of that offer. A. Agreement B. Consideration C. Legality of Purpose D. Capacity 3. is the value given in return for a promise in a bilateral contract or the value given in return for performance in a unilateral contract. A. Agreement B. Consideration C. Legality of purpose D. Capacity 4. A valid offer must do which of the following? A. Identify the parties B. Identify the subject matter of the contract C. Identify the time of payment, delivery or performance D. All of the above 5. Which of the following is the most common form of remedies courts award in suits for breach of contract? A. Expectation Damages B. Liquidated Damages C. Specific Performance D. Rescission