Formation of Contracts: Master the Essentials of Contract Law

Question 1

Acceptance can be implied through:

Accepted Answer

Options A and C only

Answer

Express words or conduct

Answer

Silence (in certain circumstances)

Answer

Lapse of time (in certain circumstances)

Question 2

Consideration is defined as:

Accepted Answer

Options A and B only

Answer

Something of value given in exchange for a promise

Answer

Must be sufficient, but need not be adequate

Answer

Must be capable of being quantified

Question 3

Intention to create legal relations is:

Accepted Answer

Presumed in commercial agreements

Answer

Required in all contracts

Answer

Never implied

Answer

Dependent on the parties' social status

Question 4

Which of the following is NOT a potential defense to a claim of lack of contractual capacity?

Accepted Answer

Undue influence

Answer

Intoxication

Answer

Minority

Answer

Mental incapacity

Question 5

An invitation to treat is:

Accepted Answer

An expression of willingness to negotiate

Answer

A legally binding offer to contract

Answer

A counter-offer

Answer

A breach of contract

Question 6

Under the postal rule, acceptance of an offer is effective:

Accepted Answer

When the acceptance letter is posted

Answer

When the acceptance letter is received by the offeror

Answer

When the offer letter is posted

Answer

When the offer letter is received by the offeree

Question 7

Which of the following is NOT a recognized type of misrepresentation in contract law?

Accepted Answer

Honest

Answer

Fraudulent

Answer

Negligent

Answer

Innocent

Question 8

The doctrine of part performance is an exception to the general rule of law that governs the formation of contracts and applies to:

Accepted Answer

Contracts for the sale of land

Answer

Written contracts only

Answer

Oral contracts only

Answer

Contracts for the sale of goods

Question 9

Which of the following is NOT a fundamental requirement for a legally binding contract?

Accepted Answer

Statute of Frauds

Answer

Offer and acceptance

Answer

Consideration

Answer

Intention to create legal relations

Question 10

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

Accepted Answer

Mistake

Answer

Offer and Acceptance

Answer

Consideration

Answer

Capacity to Contract

Question 11

Which of the following is a legally enforceable promise under English contract law?

Accepted Answer

A unilateral promise

Answer

An expression of intent to contract

Answer

A request for information

Answer

An invitation to treat

Question 12

The rule of privity of contract means that:

Accepted Answer

Only the parties to a contract can enforce it

Answer

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

Answer

A person who benefits from a contract can sue for its breach

Answer

A person who is not a party to a contract can be held liable for its breach

Question 13

Which of the following is NOT a ground for rendering a contract void?

Accepted Answer

Breach of contract

Answer

Mistake

Answer

Duress

Answer

Undue influence

Question 14

Which type of misrepresentation occurs when a statement of fact is made without verifying its accuracy, as a reasonable person would have done?

Accepted Answer

Negligent misrepresentation

Answer

Fraudulent misrepresentation

Question 15

Which element is NOT essential for a valid contract?

Accepted Answer

Witnesses

Answer

Offer

Answer

Acceptance

Answer

Intention to create legal relations

Question 16

For an offer to be valid, it must be communicated to the offeree. Which method of communication is generally NOT valid?

Accepted Answer

Mind reading

Answer

Verbal communication

Answer

Written communication

Answer

Electronic communication

Question 17

Which of the following is NOT a valid form of consideration?

Accepted Answer

A promise of friendship

Answer

Money

Answer

Goods

Answer

Services

Question 18

In which situation would there be no intention to create legal relations?

Accepted Answer

A handshake agreement between friends to go for a walk

Answer

A contract for the sale of a house

Answer

A contract for the provision of legal services

Answer

A contract for the purchase of a car

Question 19

Which of the following constitutes a valid method of acceptance?

Accepted Answer

Words or conduct indicating agreement

Answer

Silence

Answer

A counter-offer

Answer

Rejection

Question 20

Consideration in a contract refers to:

Accepted Answer

The benefit or detriment exchanged for the promise

Answer

The intention to create legal relations

Answer

The legal capacity of the parties

Answer

The subject matter of the contract

Question 21

Which of the following is NOT a factor that can influence the intention to create legal relations?

Accepted Answer

Legal capacity of the parties

Answer

Social or domestic context

Answer

Use of formal legal language

Answer

Presence of a seal

Question 22

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

Accepted Answer

Written documentation

Answer

Consideration

Answer

Offer

Answer

Acceptance

Question 23

When a contract offer includes conditions, the acceptance must adhere to which of the following requirements?

Accepted Answer

Fulfil all the specified conditions without alteration

Answer

Be communicated to the offeror within a reasonable timeframe

Answer

Be accompanied by a token of appreciation

Answer

Be provided in writing

Question 24

An invitation to treat, in the context of contract law, refers to:

Accepted Answer

An expression of willingness to engage in negotiations

Answer

The acceptance of an offer, creating a legally binding contract

Answer

A counteroffer made in response to an offer

Answer

A legally binding offer that cannot be withdrawn

Question 25

The legal doctrine of frustration of contract comes into effect when:

Accepted Answer

Unforeseen events make it impossible or fundamentally alter the performance of the contract

Answer

The contract is terminated by mutual agreement of both parties

Answer

One party breaches the terms of the contract