Formation of Contracts: Master the Essentials of Contract Law

Question 1

An offer can be revoked:

Accepted Answer

Before acceptance, except in the case of an option contract.

Answer

Only if the offer is made in writing

Answer

Never, once made

Answer

Only by the person who made the offer

Question 2

A contract made under duress is:

Accepted Answer

Voidable at the option of the innocent party

Answer

Void

Answer

Enforceable

Answer

Illegal

Question 3

Which of the following is NOT a way in which an offer can be terminated?

Accepted Answer

Acceptance

Answer

Revocation

Answer

Rejection

Answer

Expiration of the time period specified in the offer

Question 4

A contract is said to be void if it is:

Accepted Answer

Legally unenforceable from the outset

Answer

Valid but voidable

Answer

Valid and enforceable

Answer

Illegal

Question 5

Consideration, in the context of contract law, refers to:

Accepted Answer

The benefit or detriment bargained for

Answer

The price paid for the promise

Answer

The intention to create legal relations

Answer

The promise itself

Question 6

The Statute of Frauds requires certain contracts to be in writing. Which of the following is not a contract that falls under this requirement?

Accepted Answer

Employment contracts

Answer

Sale of goods valued over £20

Answer

Contracts for the sale of land

Answer

Contracts for the provision of services

Question 7

The principle of privity of contract implies that:

Accepted Answer

Only parties directly involved in a contract can sue or be sued on it

Answer

Contracts can be freely assigned to third parties

Answer

Contracts can be enforced by anyone who benefits from them

Answer

Contracts are binding on everyone

Question 8

In contract interpretation, a court's main objective is to establish:

Accepted Answer

The plain meaning of the contract's language

Answer

The specific intentions of each party

Answer

The overall business purpose of the contract

Answer

The conversations and negotiations that came before the contract

Question 9

Which of the following is a recognized exception to the rule that an offer can be revoked before acceptance?

Accepted Answer

Option contract

Answer

Unilateral contract

Answer

Bilateral contract

Answer

Executed contract

Question 10

The process by which a contract is discharged through the performance of its terms is known as:

Accepted Answer

Performance

Answer

Rescission

Answer

Novation

Answer

Accord and satisfaction

Question 11

How does genuine intention influence the validity of a contract?

Accepted Answer

A contract may be voidable if one party lacks genuine intention due to fraud or misrepresentation.

Answer

Genuine intention is irrelevant in determining contract validity.

Answer

Intention can only be expressed explicitly and cannot be inferred from actions.

Answer

A contract is legally binding even if both parties lack the capacity to understand its terms.

Question 12

Acceptance of an offer can be expressed through:

Accepted Answer

Words, conduct, or both

Answer

Silence

Answer

Conduct only

Answer

Words only

Question 13

Intention to create legal relations is:

Accepted Answer

Presumed in commercial agreements

Answer

Presumed only in written agreements

Answer

Presumed in all agreements

Answer

Never presumed

Question 14

Which of the following statements accurately describes an offer?

Accepted Answer

A clear and unequivocal expression of willingness to be bound by certain terms

Answer

A mere invitation to treat

Answer

A hypothetical proposal

Question 15

Acceptance can be expressed through:

Accepted Answer

Words, conduct, or both

Answer

Only an express written statement

Answer

Implied from previous dealings

Answer

Silence or inaction

Question 16

Consideration is defined as:

Accepted Answer

Something of value given in exchange for a promise

Answer

The legal obligation to perform a contract

Answer

The motive for entering into a contract

Answer

The benefit received by the promisor

Question 17

The postal rule states that:

Accepted Answer

Acceptance is effective upon posting of the letter

Answer

Acceptance is effective when the offeror receives the acceptance

Answer

Acceptance is effective upon receipt of the letter

Answer

Acceptance is effective when the acceptor posts the letter

Question 18

Which of the following statements is true regarding unilateral contracts?

Accepted Answer

Only the promisor is bound by the terms of the contract

Answer

The promise is conditional upon the performance of the other party

Answer

Both parties are bound by the terms of the contract

Question 19

The Statute of Frauds:

Accepted Answer

Requires certain types of contracts to be in writing

Answer

Is applicable to all types of contracts

Answer

Only applies to contracts involving the sale of goods

Question 20

The doctrine 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

Third parties can only enforce a contract if they are named as beneficiaries

Answer

Privity of contract is no longer a valid doctrine in the United Kingdom