Master Contract Law Fundamentals: Introduction to Contract Law Quiz

Question 1

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

Accepted Answer

An express contract is created through explicit words, while an implied contract is created through the conduct of the parties.

Answer

An express contract is created orally, while an implied contract is created in writing.

Answer

An implied contract is more formal than an express contract.

Answer

There is no meaningful difference between an express and an implied contract.

Question 2

In contract law, 'consideration' refers to:

Accepted Answer

The promise or benefit exchanged for the other party's performance

Answer

The written document that embodies the contract

Answer

The parties' intention to create legal relations

Answer

The subject matter of the contract

Question 3

The principle of unconscionability in contract law means that:

Accepted Answer

A contract cannot be enforced if one party has taken unfair advantage of the other's lack of understanding, weakness, or inability to protect their own interests

Answer

A contract is void if it is contrary to public policy

Answer

A contract can be terminated if it becomes impossible to perform

Answer

A contract can be varied by agreement of the parties

Question 4

According to the Frustration of Contracts Act 1943, a contract may be discharged if:

Accepted Answer

Performance of the contract becomes impossible due to an unforeseen event

Answer

One party breaches the contract and the other party accepts the breach

Answer

The contract is terminated by mutual agreement

Answer

The contract is void from the beginning

Question 5

In contract law, when can a court order specific performance as a remedy for breach of contract?

Accepted Answer

Only if monetary damages would not fairly compensate the non-breaching party

Answer

When the contract involves the sale of real estate

Answer

When the breaching party is a minor

Answer

Never

Question 6

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

Accepted Answer

Reasonableness

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 7

The concept of 'privity of contract' means that:

Accepted Answer

Only the parties to a contract can enforce it

Answer

Third parties can always enforce a contract

Answer

Only the person who signed the contract can enforce it

Answer

The contract is only binding on the person who made the offer

Question 8

The term 'consideration' in contract law refers to:

Accepted Answer

The bargained-for exchange of value between the parties

Answer

The promise made by one party to the other

Answer

The legal obligation to perform the contract

Answer

The value of the goods or services being exchanged

Question 9

The Statute of Frauds requires that certain types of contracts must be evidenced in writing to be legally enforceable.

Accepted Answer

True

Answer

False

Question 10

The doctrine of frustration applies when a contract becomes impossible or impracticable to perform due to an unforeseen change in circumstances.

Accepted Answer

True

Answer

False

Question 11

Can an offer be withdrawn before it is accepted?

Accepted Answer

Yes

Answer

No

Question 12

Typically, a minor is legally bound by a contract for:

Accepted Answer

Necessities only

Answer

Non-necessities only

Answer

Both necessities and non-necessities

Answer

Neither necessities nor non-necessities

Question 13

The parol evidence rule generally prohibits the use of:

Accepted Answer

Oral evidence to contradict or vary a written contract

Answer

Written evidence to contradict or vary an oral contract

Answer

Oral evidence to contradict or vary a parol contract

Answer

Written evidence to contradict or vary a parol evidence

Question 14

The doctrine of privity of contract states that:

Accepted Answer

Only parties to a contract can enforce it

Answer

Third parties can enforce a contract even if they are not named

Answer

A contract can be assigned to a third party without the consent of the other party

Answer

A contract can be terminated by a third party

Question 15

Which of the following is NOT a requirement for a contract to be legally valid?

Accepted Answer

Intention to create legal relations

Answer

Offer and acceptance

Answer

Consideration

Question 16

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

Accepted Answer

Legality

Answer

Offer and acceptance

Answer

Consideration

Answer

Capacity

Question 17

An offer can be revoked by the offeror:

Accepted Answer

Before it is accepted

Answer

Only if it is in writing

Answer

After it is accepted

Answer

Only if the offeree has relied on it

Question 18

Consideration is:

Accepted Answer

Something of value given in exchange for a promise

Answer

An obligation to perform

Answer

A promise to do something

Answer

A legal right

Question 19

Which of the following is a type of implied term?

Accepted Answer

Term of fitness for purpose

Answer

Express term

Answer

Condition

Answer

Collateral warranty

Question 20

What is the primary remedy for breach of contract?

Accepted Answer

Damages

Answer

Specific performance

Answer

Rescission

Answer

Injunction

Question 21

What is the key distinction between a condition and a warranty in a contract?

Accepted Answer

A breach of condition gives the innocent party the right to terminate the contract, while a breach of warranty only gives the right to claim damages.

Answer

A condition is more important than a warranty.

Question 22

What is the primary purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud by requiring certain types of contracts to be in writing

Answer

To protect consumers from unfair contracts

Answer

To regulate the sale of goods