Formation of Contracts: Essential Elements for Valid Agreements

Question 1

Which of the following is NOT required for a valid contract in the UK?

Accepted Answer

Witness presence

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 2

In contract law, what term refers to the value exchanged between parties?

Accepted Answer

Consideration

Answer

Offer

Answer

Acceptance

Answer

Capacity

Question 3

What is the distinction between unilateral and bilateral contracts?

Accepted Answer

Unilateral contracts involve one promise, while bilateral contracts involve two.

Answer

Bilateral contracts involve one promise, while unilateral contracts involve two.

Answer

There is no significant difference between unilateral and bilateral contracts.

Answer

Unilateral contracts require two promises, while bilateral contracts require only one.

Question 4

What is the key difference between an express and implied contract?

Accepted Answer

Express contracts are formed through spoken or written words, while implied contracts are inferred from conduct.

Answer

Express contracts are written, whereas implied contracts are not.

Answer

Implied contracts are written, whereas express contracts are not.

Answer

There is no difference between express and implied contracts.

Question 5

What is the primary purpose of the Statute of Frauds?

Accepted Answer

To require certain types of contracts to be in writing for legal validity.

Answer

To regulate the formation of all contracts.

Answer

To protect consumers from fraudulent or misleading contracts.

Answer

To govern the sale of goods and services.

Question 6

In contract law, consideration is a crucial element that can take two main forms. Explain the difference between executed and executory consideration, providing clear examples to illustrate each type.

Accepted Answer

Executed consideration is an action that has already been completed, either before or at the time of the contract formation. Executory consideration, on the other hand, is a promise to perform an action in the future.

Answer

Both executed and executory consideration involve promises to perform acts in the future.

Answer

Executed consideration is inherently more valuable than executory consideration.

Answer

Executory consideration is legally enforceable as soon as it is promised.

Question 7

In contract law, estoppel refers to which of the following situations?

Accepted Answer

A party cannot deny a contract's existence, even without a valid offer and acceptance.

Answer

Estoppel is only applicable to written contracts.

Answer

Estoppel is always used to enforce contracts.

Answer

Estoppel is not a valid defense in contract law.

Question 8

Which of the following is not an essential element for a valid contract in English law?

Accepted Answer

Loyalty

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 9

Consideration in contract law refers to:

Accepted Answer

Price paid for goods or services

Answer

Legal obligation to perform a contract

Answer

Intention to create legal relations

Answer

Offer made by one party

Question 10

Which of the following is NOT a ground for invalidating a contract in English law due to lack of intention to create legal relations?

Accepted Answer

Commercial agreements

Answer

Domestic agreements

Answer

Letters of intent

Answer

Social engagements

Question 11

Which of the following is NOT a type of void contract in English law?

Accepted Answer

Contracts lacking consideration

Answer

Illegal contracts

Answer

Contracts made by minors

Answer

Contracts made under duress

Question 12

The principle of privity of contract means that:

Accepted Answer

Only the parties to a contract can enforce it

Answer

Contracts bind all individuals

Answer

Contracts can be assigned to third parties

Answer

Breach of contract can result in criminal penalties

Question 13

Which of the following is NOT an essential element of a legally binding contract?

Accepted Answer

Competence

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 14

An offer can be withdrawn (revoked) before it is accepted.

Accepted Answer

True

Answer

False

Question 15

Which of the following is NOT a type of implied term in a contract?

Accepted Answer

Term that is expressly agreed upon by the parties

Answer

Term implied by law (e.g., a term that goods sold are of satisfactory quality)

Answer

Term implied by custom (e.g., a term that a buyer of a horse can return it if it is 'not a good puller')

Answer

Term implied by the court (e.g., a term that a landlord must keep a rented property in repair)

Question 16

Which element is NOT essential for a legally binding contract?

Accepted Answer

Good Faith

Answer

Offer

Answer

Acceptance

Answer

Intention to create legal relations

Question 17

What is the distinction between void and voidable contracts?

Accepted Answer

Voidable contracts are invalid from the start, while void contracts can be terminated at a party's discretion.

Answer

Void contracts are binding, while voidable contracts are not.

Answer

Void contracts are enforceable, while voidable contracts are not.

Answer

There is no difference between void and voidable contracts.

Question 18

Which of the following is NOT an essential element for a valid contract in the UK?

Accepted Answer

Agreement

Answer

Consideration

Answer

Intention to Create Legal Relations

Answer

Capacity

Question 19

An offer is best defined as:

Accepted Answer

A proposal to enter into a legally binding agreement

Answer

The acceptance of a proposal

Answer

A promise to perform a specific action

Answer

A counter-proposal

Question 20

In contract law, consideration refers to:

Accepted Answer

Something of value given in exchange for a promise

Answer

The specific terms of the agreement

Answer

The legal obligation to fulfill the contract

Answer

The intention of the parties involved

Question 21

Which of the following is NOT a requirement for a valid acceptance of an offer?

Accepted Answer

It must be made in writing

Answer

It must be communicated to the offeror

Answer

It must be unconditional

Answer

It must be made within a reasonable timeframe

Question 22

When a contract is breached, the innocent party may be entitled to:

Accepted Answer

Any or all of the above

Answer

Damages

Answer

Specific performance

Answer

Rescission

Question 23

When a contract is formed under duress or undue influence, which legal consequence arises?

Accepted Answer

The innocent party can cancel the contract and claim damages.

Answer

The contract is automatically void.

Answer

The party responsible for the duress or undue influence faces criminal charges.

Answer

The contract remains legally binding on both parties.

Question 24

In the context of contract formation, which of the following is NOT a potential legal consequence of misrepresentation?

Accepted Answer

Specific performance

Answer

Damages

Answer

Rescission

Question 25

Which of the following is NOT considered an essential element for the formation of a valid contract in the UK?

Accepted Answer

Written form

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 26

For an acceptance to be valid, it must be:

Accepted Answer

Unconditional and communicated to the offeror

Answer

Conditional and communicated to the offeror

Answer

Unconditional but not communicated to the offeror

Answer

Conditional and not communicated to the offeror

Question 27

Consideration in a contract refers to:

Accepted Answer

The value exchanged between the parties

Answer

The price paid for goods or services

Answer

The intention to create legal relations

Answer

The capacity to enter into a contract

Question 28

Which of the following is NOT a method of terminating an offer?

Accepted Answer

Performance

Answer

Rejection

Answer

Revocation

Answer

Counteroffer

Question 29

A voidable contract is one that:

Accepted Answer

Is legally binding unless one party chooses to set it aside

Answer

Is legally binding from the outset

Answer

Is not legally binding on either party

Answer

Is only legally binding if it is in writing

Question 30

An offer becomes legally binding upon:

Accepted Answer

Acceptance by the offeree

Answer

Communication to the offeree

Answer

Rejection by the offeree

Answer

Consideration by the offeree

Question 31

What is the difference between an invitation to treat and an offer?

Accepted Answer

An invitation to treat is not intended to be legally binding, while an offer is.

Answer

An offer is not intended to be legally binding, while an invitation to treat is.

Answer

They are both legally binding.

Answer

There is no difference.

Question 32

What is the effect of a counter-offer?

Accepted Answer

It terminates the original offer.

Answer

It modifies the original offer.

Answer

It creates a new offer.

Answer

It has no effect on the original offer.

Question 33

Which of the following is NOT a defence to a breach of contract?

Accepted Answer

Misrepresentation

Answer

Frustration

Answer

Impossibility

Answer

Duress

Question 34

Which of the following is NOT an essential element for a valid contract in the UK?

Accepted Answer

Verbal acceptance

Answer

Consideration

Answer

Offer

Answer

Intention to create legal relations

Question 35

To be valid, an offer must be:

Accepted Answer

Clear, definite, and communicated to the offeree

Answer

Revocable at any time

Answer

Conditional

Answer

Accepted in writing

Question 36

What is the legal principle that states that a contract is only binding if both parties intend to create legal relations?

Accepted Answer

Intention to Create Legal Relations

Answer

Capacity

Answer

Consideration

Answer

Offer and Acceptance

Question 37

Which of the following is NOT a type of consideration?

Accepted Answer

Moral obligation

Answer

Nominal consideration

Answer

Executory consideration

Answer

Executed consideration

Question 38

What is the difference between an express and an implied contract?

Accepted Answer

An express contract is explicitly stated, while an implied contract is inferred from the parties' conduct or circumstances

Answer

An express contract is only valid if it is in writing

Question 39

Which of the following is NOT a remedy for breach of contract?

Accepted Answer

Criminal prosecution

Answer

Specific performance

Answer

Injunction

Answer

Damages

Question 40

What is the Statute of Frauds?

Accepted Answer

A law that requires certain types of contracts to be in writing to be legally enforceable

Answer

A law that governs the formation of partnerships

Answer

A law that prevents minors from entering into contracts

Question 41

Which of the following is NOT a benefit of using a written contract?

Accepted Answer

It is difficult to prove the terms of the contract

Answer

It provides a clear record of the parties' agreement

Answer

It can help to prevent disputes

Answer

It can be used as evidence in court

Question 42

Which of the following is NOT an essential element for the formation of a valid contract in the UK?

Accepted Answer

Witness signature

Answer

Acceptance

Answer

Consideration

Answer

Offer

Question 43

An offer is a clear and definite proposal made by one party to another, with the intention of creating a legally binding agreement. Which of the following is NOT a feature of an offer?

Accepted Answer

Invitation to treat

Answer

Communication

Answer

Certainty

Answer

Revocability

Question 44

Acceptance is the unconditional agreement to the terms of an offer. Which of the following is NOT a valid method of acceptance?

Accepted Answer

Silence

Answer

Communication

Answer

Conduct

Answer

Implied acceptance

Question 45

Intention to create legal relations refers to the parties' subjective intent to enter into a legally enforceable contract. Which of the following is NOT an indication of such intent?

Accepted Answer

Social agreement

Answer

Formal language

Answer

Written contract

Answer

Business context

Question 46

Capacity refers to the legal ability of a party to enter into a contract. Which of the following individuals may lack the capacity to contract?

Accepted Answer

Minors

Answer

Adults

Answer

Mentally competent individuals

Question 47

Which of the following is a potential common law defence to the enforcement of a contract?

Accepted Answer

Duress

Answer

Statute of Limitations

Answer

Breach of contract

Question 48

Which of the following is NOT a type of express term in a contract?

Accepted Answer

Implied term

Answer

Oral term

Answer

Written term

Answer

Incorporated term

Question 49

Which of the following is a type of implied term in a contract?

Accepted Answer

Term of fitness for purpose

Answer

Condition

Answer

Collateral contract

Answer

Express warranty

Question 50

Which of the following is NOT a required element for a legally binding contract in the UK?

Accepted Answer

A written agreement

Answer

Acceptance of the offer

Answer

Consideration (something of value exchanged)

Answer

An offer

Question 51

Sarah offers to sell her car to John for £5,000. John replies, "I'll buy it, but only for £4,500."  What is the legal situation?

Accepted Answer

There's no contract. John's reply is a counter-offer, which Sarah can choose to accept or reject.

Answer

A contract exists for £5,000.

Answer

A contract exists for £4,500.

Question 52

A promise to donate £10,000 to a charity is generally NOT considered legally binding. What is the most likely reason for this?

Accepted Answer

The law presumes there's usually NO intention to create legal relations in social or domestic agreements, unless proven otherwise.

Answer

There is always a presumption of intention to create legal relations in charitable agreements.

Answer

A donation is always considered a binding contract.

Question 53

Which example demonstrates valid 'consideration' in a contract?

Accepted Answer

Agreeing to pay £100 in exchange for someone cleaning your car.

Answer

Promising to do something you're already legally required to do.

Answer

Promising to give someone a birthday gift.

Question 54

A 15-year-old signs a contract to buy an expensive laptop.  What is generally true about this situation?

Accepted Answer

The contract is likely voidable, meaning the 15-year-old can choose to cancel it.

Answer

The contract is automatically void (completely invalid) from the start.

Answer

The contract is fully valid and binding.

Question 55

John agrees to paint Mary's house, but then doesn't show up. What is Mary's most likely legal recourse?

Accepted Answer

Mary can sue John for breach of contract.

Answer

Mary cannot sue John because there was no written contract.

Answer

Mary has to wait and see if John eventually paints the house.

Answer

John can sue Mary for not providing him with paint.

Question 56

What is a statement made during negotiations to convince someone to enter a contract called?

Accepted Answer

A representation

Answer

A warranty

Answer

A condition

Answer

A term

Question 57

Which situation best explains the idea of 'privity of contract'?

Accepted Answer

Only the people or companies who signed a contract can enforce its terms.

Answer

People in a contract can agree to change it later on.

Question 58

What do we call a contract that's formed through actions and conduct, not written or spoken words?

Accepted Answer

An implied contract

Answer

A voidable contract

Answer

A void contract

Answer

An express contract