Formation of Contracts: Master the Essentials of Contract Law

Question 1

Which statement correctly defines consideration in contract formation?

Accepted Answer

Consideration can be provided before, during, or after the promise is made.

Answer

Consideration must be of equal value to the promise.

Answer

Consideration only benefits the person making the promise.

Answer

Consideration is not required for a contract to be legally binding.

Question 2

Which of the following is not considered an essential element for a legally valid contract?

Accepted Answer

Legality

Answer

Offer

Answer

Acceptance

Answer

Valuable Consideration

Question 3

An offer is essentially made when a party:

Accepted Answer

Demonstrates a willingness to be legally bound by specific terms

Answer

Makes a promise to do something

Answer

Asks another person to fulfill a specific request

Answer

Accepts the conditions of another person's offer

Question 4

When considering acceptance of an offer, which of the following is not a crucial requirement?

Accepted Answer

Acceptance in writing

Answer

Communication of acceptance to the offeror

Answer

Acceptance without附加条件

Answer

Acceptance within a reasonable timeframe

Question 5

An invitation to treat is best defined as:

Accepted Answer

A request for potential buyers to make offers

Answer

A binding offer that cannot be withdrawn

Answer

An acceptance of an offer

Answer

A counter-offer

Question 6

Duress in the context of contract law occurs when:

Accepted Answer

One party applies pressure to another party to enter into a contract

Answer

One party misrepresents the terms of a contract

Answer

One party fails to disclose important information

Answer

One party breaches a contract

Question 7

Which of the following is NOT a necessary component of a valid offer?

Accepted Answer

Consideration

Answer

Clear and specific terms

Answer

Communication to the offeree

Answer

Intention to create legal relations

Question 8

In contract law, what is a primary purpose of a signature?

Accepted Answer

Providing proof of the parties' agreement

Answer

Making an offer

Answer

Indicating acceptance

Question 9

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

Accepted Answer

Damages

Answer

Offer

Answer

Acceptance

Answer

Intention to create legal relations

Question 10

Consideration in a contract is:

Accepted Answer

Any benefit or detriment bargained for

Answer

The price paid for goods or services

Answer

The intention of the parties to be legally bound

Answer

The capacity of the parties to enter into a contract

Question 11

Which of the following is NOT a necessary element for the formation of a legally binding contract?

Accepted Answer

Witness

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 12

An offer can be retracted:

Accepted Answer

Before it has been accepted

Answer

Only if it was made in writing

Answer

Only if the offeree has already started to perform the contract

Answer

After it has been communicated to the offeree

Question 13

Which of the following cannot constitute valid consideration?

Accepted Answer

A promise to fulfill an existing legal obligation

Answer

Transferring goods

Answer

Providing services

Answer

Providing money

Question 14

A unilateral contract is one in which:

Accepted Answer

The offeror promises something in exchange for an act

Answer

The offeree promises something in exchange for a promise

Answer

Both parties exchange promises

Answer

There is no exchange of promises

Question 15

What is the primary distinction between unilateral and bilateral contracts?

Accepted Answer

Unilateral contracts involve one party, while bilateral contracts involve multiple parties.

Answer

Unilateral contracts are written, while bilateral contracts can be oral or written.

Answer

Unilateral contracts can be terminated by either party, while bilateral contracts cannot.

Answer

Unilateral contracts are common in business, while bilateral contracts are common in personal matters.

Question 16

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

Accepted Answer

Witness signature

Answer

Acceptance

Answer

Consideration

Answer

Offer

Question 17

An __________ is a proposal to enter into a legally binding agreement.

Accepted Answer

Offer

Answer

Invitation to treat

Answer

Counter-offer

Answer

Acceptance

Question 18

Which of the following is a valid form of acceptance?

Accepted Answer

Verbal communication

Answer

Silence

Answer

Lapse of time

Answer

Counter-offer

Question 19

Consideration can be best described as:

Accepted Answer

Something of value exchanged for a promise

Answer

The capacity of the parties

Answer

The subject matter of the contract

Answer

The intention to create legal relations

Question 20

A contract is said to be __________ when both parties intend to create a legally enforceable agreement.

Accepted Answer

Intention to create legal relations

Answer

Implied

Answer

Express

Answer

Written

Question 21

An offer can be revoked before acceptance:

Accepted Answer

True

Answer

Only if it is in writing

Answer

Only if the offeror provides reasonable notice

Answer

False

Question 22

A counter-offer is:

Accepted Answer

A rejection of the original offer and a new proposal

Answer

A request for clarification of the original offer

Answer

An acceptance of the original offer with additional terms