Introduction to Contract Law: Master the Basics of Contract Formation

Question 1

Which element is NOT essential for a valid contract under English law?

Accepted Answer

Formalities

Answer

Offer and acceptance

Answer

Consideration

Answer

Capacity

Question 2

What type of contract arises when a person makes an offer and promises to perform an act upon the other party's performance?

Accepted Answer

Bilateral contract

Answer

Unilateral contract

Answer

Express contract

Answer

Implied contract

Question 3

What is the consequence of a contract being void?

Accepted Answer

It is not legally binding on either party

Answer

It is legally binding on both parties

Answer

It is legally binding on one party but not the other

Answer

It is only legally binding if it is in writing

Question 4

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

Accepted Answer

Express contracts are created by the parties' words, while implied contracts are created by their conduct

Answer

Express contracts are written, while implied contracts are oral

Answer

Express contracts are more formal than implied contracts

Answer

Implied contracts are only valid if they are in writing

Question 5

Which of the following is NOT a type of unilateral contract?

Accepted Answer

Contracts for the sale of goods

Answer

Reward offers

Answer

Promises to pay for information

Answer

Promises to perform a specific act in exchange for payment

Question 6

What is the legal effect of undue influence on a contract?

Accepted Answer

It makes the contract voidable

Answer

It makes the contract void

Answer

It makes the contract unenforceable

Answer

It has no effect on the contract

Question 7

What is the main purpose of the Statute of Frauds?

Accepted Answer

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

Answer

To make it easier to prove the existence of a contract

Answer

To protect the rights of minors

Answer

To promote certainty in commercial transactions

Question 8

Which type of contract arises from conduct and actions, rather than express or written words?

Accepted Answer

Implied contract

Answer

Bilateral contract

Answer

Unilateral contract

Answer

Express contract

Question 9

What is the primary legal consequence of a breach of contract?

Accepted Answer

Damages

Answer

Specific performance

Answer

Rescission

Answer

Injunction

Question 10

Distinguish between an offer and an invitation to treat in contract law.

Accepted Answer

An offer is a definite proposal that, upon acceptance, creates a binding contract, whereas an invitation to treat merely invites further negotiation or an offer.

Answer

An invitation to treat is a definite proposal that, upon acceptance, creates a binding contract, whereas an offer merely invites further negotiation or an offer.

Question 11

What is the main purpose of consideration in a legally binding contract?

Accepted Answer

To create a legally enforceable agreement between the parties

Answer

To document the parties' intentions and understanding

Answer

To compensate for any losses suffered by either party

Answer

To protect the weaker party from exploitation

Question 12

Which of the following is NOT a legal requirement for a contract to be considered valid and enforceable?

Accepted Answer

A formal written document

Answer

Genuine consent of all parties involved

Answer

A lawful purpose or objective

Answer

Legal capacity to enter into a contract

Question 13

What is the potential legal effect of a misrepresentation made during contract negotiations?

Accepted Answer

It may render the contract voidable at the discretion of the innocent party

Answer

It will have no legal effect on the validity or enforceability of the contract

Answer

It will make the contract illegal and subject to criminal penalties

Answer

It will automatically make the contract void and unenforceable

Question 14

Which of the following is a key principle underlying the formation of contracts?

Accepted Answer

Consensus ad idem

Answer

Utmost good faith

Answer

Estoppel

Answer

Privity of contract

Question 15

Which type of contract is formed by the conduct of the parties, as opposed to express agreement?

Accepted Answer

Implied contract

Answer

Unilateral contract

Answer

Formal contract

Answer

Bilateral contract

Question 16

What is the legal effect of a breach of contract?

Accepted Answer

The innocent party may seek remedies such as damages or specific performance. The contract remains intact

Answer

The contract becomes void ab initio

Answer

The parties are mutually discharged from their obligations

Question 17

What is the difference between a condition and a warranty in contract law?

Accepted Answer

A condition is a fundamental term, while a warranty is a less significant term

Answer

A condition is more serious than a warranty

Answer

A warranty is a type of condition

Question 18

What is the doctrine of privity of contract?

Accepted Answer

Only the parties to a contract can enforce it or be bound by its terms

Answer

Contracts can be assigned to third parties without the consent of the other party

Answer

Third parties can benefit from a contract even if they are not named as parties

Question 19

What is the purpose of the Statute of Frauds?

Accepted Answer

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

Answer

To provide a record of all contracts entered into

Answer

To protect consumers from unfair contractual terms

Question 20

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

Accepted Answer

Past consideration

Answer

Offer

Answer

Intention to create legal relations

Answer

Acceptance

Question 21

A unilateral contract is formed when:

Accepted Answer

One party promises to do something in exchange for the other party performing a specific action.

Answer

Both parties exchange promises simultaneously.

Answer

An agreement is made orally.

Question 22

According to the 'postal rule', acceptance of an offer takes effect when:

Accepted Answer

The letter of acceptance is properly posted.

Answer

The offeror reads the letter of acceptance.

Answer

The letter of acceptance is received by the offeror.

Question 23

Which of the following is an example of an invitation to treat?

Accepted Answer

A newspaper advertisement for a sale on televisions.

Answer

A shop displaying goods with price tags.

Answer

A letter stating that a person is willing to sell their car for £5,000.

Question 24

What is the effect of a counter-offer?

Accepted Answer

It rejects the original offer and creates a new offer.

Answer

It creates a binding contract.

Answer

It accepts the original offer.

Question 25

Which of the following factors is NOT typically considered when determining if parties intended to create legal relations?

Accepted Answer

The age of the parties.

Answer

The relationship between the parties.

Answer

The language used in the agreement.

Answer

The nature of the agreement.

Question 26

An agreement made under duress is:

Accepted Answer

Voidable

Answer

Valid

Answer

Void

Answer

Unenforceable

Question 27

Which of the following is an example of a misrepresentation?

Accepted Answer

A seller stating a car has only had one owner when it has had three.

Answer

A seller making a statement about the future performance of a product that turns out to be false.

Answer

A seller failing to mention a minor scratch on a product.

Question 28

In which scenario is the doctrine of promissory estoppel most likely to apply?

Accepted Answer

A landlord promises to reduce a tenant's rent, and the tenant relies on this promise to make alterations to the property.

Answer

A seller promises to deliver goods on a certain date, but fails to do so.

Question 29

What is the primary purpose of a contract?

Accepted Answer

To create legally binding obligations between parties.

Answer

To record an agreement between parties.

Answer

To prevent disputes between parties.