Legality of Contractual Objectives: Test Your Knowledge

Question 1

Which of the following is not a ground for illegality under English contract law?

Accepted Answer

Lack of consideration, as this is not an element of contract formation but rather a requirement for the enforceability of a contract

Answer

Contravention of a statute

Answer

Violation of public policy

Answer

Violation of ethical standards

Question 2

A contract to sell illegal drugs is:

Accepted Answer

Void ab initio, meaning it is considered invalid from the outset due to its inherent illegality

Answer

Valid and enforceable

Answer

Voidable at the option of the innocent party

Answer

Unenforceable but not void, meaning that it is not legally binding but may have some practical consequences

Question 3

What is the primary legal effect of a contract that is void ab initio?

Accepted Answer

It is treated as if it never existed, meaning it has no legal force or effect whatsoever.

Answer

It is valid until it is set aside by a court, allowing for the possibility of rescission or other legal remedies

Answer

It is enforceable by the innocent party, providing them with legal recourse against the guilty party

Answer

It is voidable at the option of the guilty party, giving them the choice to terminate the contract and avoid its consequences

Question 4

What is the key distinction between a void contract and a voidable contract?

Accepted Answer

Void contracts cannot be enforced by either party, while voidable contracts can be enforced by the innocent party until it is set aside

Answer

Void contracts are illegal, while voidable contracts are not.

Answer

Void contracts are created when there is a mistake, while voidable contracts are created when there is duress or undue influence.

Answer

There is no meaningful distinction between void contracts and voidable contracts, as both are considered legally invalid

Question 5

What is the effect of a severability clause in a contract that is found to be partially illegal?

Accepted Answer

It allows the legal parts of the contract to be enforced, while the illegal parts are considered void

Answer

It renders the entire contract void, as the illegal part cannot be separated from the legal parts

Answer

It makes the illegal parts of the contract voidable, giving the parties the option to terminate those parts

Answer

It has no effect on the validity of the contract, meaning the entire contract remains either valid or void

Question 6

In determining whether a contract is contrary to public policy, which factor is paramount?

Accepted Answer

The potential impact of the contract on the public interest

Answer

The characteristics of the parties involved

Answer

The intentions of the parties when entering the contract

Question 7

In contract law, what is the primary legal consequence of an illegal contract under common law?

Accepted Answer

The contract is null and void.

Answer

The contract is valid and enforceable.

Answer

The contract is voidable by the innocent party.

Answer

The contract is enforceable if it is written.

Question 8

What is the most likely consequence of an illegal contractual object?

Accepted Answer

The contract is unenforceable and void.

Answer

The contract remains valid and enforceable.

Answer

The contract is voidable at the discretion of one party.

Answer

The contract is enforceable for specific purposes.

Question 9

Which factor is NOT taken into account when determining the legality of a contractual object?

Accepted Answer

Commercial reasonableness

Answer

Applicable statutes and regulations

Answer

Public policy considerations

Answer

Moral principles

Question 10

Which of the following contractual objects would most likely violate public policy?

Accepted Answer

Sale of a kidney

Answer

Provision of legal services

Answer

Purchase of a residential property

Answer

Investment in stocks

Question 11

Which statement accurately reflects the role of morality in assessing contractual objects?

Accepted Answer

Morality is a subjective concept that varies across cultures.

Answer

Courts consistently uphold contracts that violate morality.

Answer

Morality is irrelevant in determining the legality of an object.

Answer

Contracts violating morality are always void.

Question 12

Identify the consequence that is NOT associated with a contract that contravenes public policy:

Accepted Answer

The contract is legally valid and enforceable

Answer

The contract is rendered void and unenforceable

Answer

The parties may be held accountable for damages

Answer

The contract may be modified by a court to comply with public policy

Question 13

A contractual agreement to distribute illicit substances is considered:

Accepted Answer

Illegal and void.

Answer

Legitimate and enforceable.

Answer

Legal but unenforceable

Answer

Enforceable if documented in writing

Question 14

Identify the exception that is recognized when assessing the legality of contracts that violate statutes:

Accepted Answer

The contract's intent aligns with the purpose of the statute

Answer

The statute's meaning is unclear

Answer

The parties were unaware of the statute's existence

Answer

The contract involves a significant monetary amount

Question 15

A contractual agreement facilitating prostitution is:

Accepted Answer

Illegal and void.

Answer

Legitimate and enforceable.

Answer

Legal but unenforceable

Answer

Enforceable if both parties involved provide informed consent

Question 16

When evaluating whether a contract violates public policy, which factor is NOT taken into consideration:

Accepted Answer

The age of the parties involved

Answer

The underlying intent of the statute or regulation

Answer

The interests of the parties directly involved

Answer

The social and economic ramifications of the contract

Question 17

A contractual agreement to sell a human kidney is considered:

Accepted Answer

Illegal and void.

Answer

Legitimate and enforceable.

Answer

Legal but unenforceable

Answer

Enforceable if the donor is fully informed of the risks

Question 18

Identify the statutory provision that is NOT relevant when determining the legality of a contract:

Accepted Answer

The Magna Carta (1215)

Answer

The Sale of Goods Act 1979

Answer

The Consumer Protection Act 1987

Answer

The Bribery Act 2010

Question 19

A contract that is void ab initio is characterized as:

Accepted Answer

Void from its inception

Answer

Valid from its inception

Answer

Voidable by either party

Answer

Enforceable by a third party acting in good faith

Question 20

In the case of a breach of contract involving illegal activities, which remedy is NOT available:

Accepted Answer

Specific performance

Answer

Damages

Answer

Rescission

Answer

Injunction

Question 21

Is a contract to provide false testimony in court considered legal?

Accepted Answer

No, such a contract is illegal and void.

Answer

Yes, such a contract is legal but unenforceable.

Answer

No, such a contract is enforceable if the testimony is not material.

Answer

Yes, such a contract is legal and enforceable.

Question 22

Which of the following contracts is likely to be considered illegal due to its violation of public policy?

Accepted Answer

A contract to engage in insider trading

Answer

A contract to purchase a rare painting

Answer

A contract to provide legal advice

Answer

A contract to sell a car

Question 23

A contract for the sale of dangerous chemicals prohibited by statute is:

Accepted Answer

Illegal

Answer

Legal only if the chemicals are not hazardous

Answer

Legal only if the buyer is a licensed chemical handler

Question 24

Which of the following is NOT a factor that may render a contract illegal due to immorality?

Accepted Answer

The contract promotes the public good

Answer

The contract violates generally accepted social norms

Answer

The contract involves sexual exploitation

Answer

The contract promotes hatred or violence

Question 25

A contract to pay a witness to provide false testimony in court is:

Accepted Answer

Illegal due to its illegality of object

Answer

Illegal only if the witness is a lawyer

Answer

Legal as long as the witness is not an expert

Answer

Legal only if the subject matter of the testimony is not material

Question 26

Which of the following is a potential consequence of an illegal contract?

Accepted Answer

The contract is void

Answer

The contract is enforceable only against the party who is at fault

Answer

The contract is only partially enforceable

Answer

The contract remains valid but damages cannot be claimed

Question 27

A contract to purchase a stolen car is:

Accepted Answer

Illegal due to its illegality of object

Answer

Illegal only if the buyer intends to resell the car

Answer

Legal only if the car is not worth more than a certain amount

Answer

Legal as long as the buyer does not know the car is stolen

Question 28

Which of the following is NOT a potential benefit of declaring a contract illegal?

Accepted Answer

Encouraging harmful conduct

Answer

Maintaining public order

Answer

Protecting vulnerable parties

Question 29

A contract to provide a service that is prohibited by law is:

Accepted Answer

Illegal due to its illegality of object

Answer

Legal only if the service is provided for free

Answer

Illegal only if the service provider is a professional

Answer

Legal as long as the service is not harmful

Question 30

Which of the following is NOT a factor that may affect the legality of a contractual object?

Accepted Answer

The age of the parties involved

Answer

The nature of the contract

Answer

The purpose of the contract

Answer

The consequences of the contract

Question 31

A contract to sell drugs is:

Accepted Answer

Illegal due to its illegality of object

Answer

Legal only if the seller is a licensed pharmacist

Answer

Legal if the drugs are for personal use

Answer

Illegal only if the drugs are sold to minors