Master Contract Formation: A Comprehensive Guide for Law Students

Question 1

Which legal principle states that an agreement is not legally enforceable unless both parties exchange something of value?

Accepted Answer

Consideration

Answer

Promissory Estoppel

Answer

Privity of Contract

Answer

Unconscionability

Question 2

Intention to create legal relations is:

Accepted Answer

Essential for a valid contract

Answer

Presumed in all contracts unless explicitly stated otherwise.

Answer

Only relevant in commercial contracts

Answer

Irrelevant in family agreements

Question 3

Which of the following statements about counteroffers is accurate?

Accepted Answer

They constitute a rejection of the original offer

Answer

They cannot be accepted

Answer

They are always valid offers themselves

Answer

They can be withdrawn at any time

Question 4

Which of the following is **not** a type of implied term in a contract?

Accepted Answer

Terms implied by the parties

Answer

Terms implied by custom

Answer

Terms implied by statute

Answer

Terms implied by the courts

Question 5

Which of the following is NOT a method of accepting an offer?

Accepted Answer

Rejection

Answer

Express acceptance

Answer

Implied acceptance

Answer

Counter-offer

Question 6

A void contract is a contract that is:

Accepted Answer

Not legally binding

Answer

Legally binding but unenforceable

Answer

Legally binding and enforceable

Answer

Capable of being ratified

Question 7

The purpose of an intention to create legal relations is to:

Accepted Answer

Establish the binding nature of the agreement

Answer

Indicate the parties' seriousness

Answer

Determine the scope of the contract

Answer

Specify the performance obligations

Question 8

An invitation to treat is:

Accepted Answer

A mere expression of willingness to negotiate

Answer

A binding offer that can lead to a contract

Answer

A unilateral offer that can be accepted by any party

Answer

A type of contract that does not require consideration

Question 9

Which of the following is NOT a way to terminate an offer?

Accepted Answer

Performance of the contract by the offeree

Answer

Rejection by the recipient

Answer

Counteroffer made by the recipient

Answer

Withdrawal by the offeror

Question 10

Which of the following is NOT a recognized method of discharging a contractual obligation?

Accepted Answer

Unilateral cancellation

Answer

Performance

Answer

Mutual agreement

Answer

Frustration of purpose

Question 11

Which of the following is NOT considered a fundamental element essential to the formation of a binding contract?

Accepted Answer

Signature

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 12

Which of the following is NOT a requirement for an acceptance to be considered legally effective and binding?

Accepted Answer

Expressed in writing

Answer

Unconditional and unequivocal

Answer

Communicated to the offeror in a timely manner

Answer

Exactly matching the terms of the offer without any modifications

Question 13

Intention to create legal relations:

Accepted Answer

May be implied in certain types of agreements, such as social or domestic arrangements

Answer

Is automatically presumed in all commercial agreements

Answer

Is irrelevant to the validity and enforceability of a contract

Answer

Requires an explicit statement to that effect

Question 14

The Statute of Frauds, a legal provision in many jurisdictions:

Accepted Answer

Requires certain types of contracts to be in writing to be legally enforceable

Answer

Applies to all contracts, regardless of their subject matter or value

Answer

Is primarily concerned with protecting consumers from fraudulent or misleading agreements

Answer

Has been abolished in most modern legal systems

Question 15

Which factors can influence an individual's ability to enter into a legally binding contract?

Accepted Answer

Age

Accepted Answer

Mental capacity

Accepted Answer

Intoxication

Answer

Political affiliation

Question 16

Which of the following is NOT a method of acceptance under English law?

Accepted Answer

Silence

Answer

Express acceptance

Answer

Implied acceptance

Answer

Unilateral acceptance

Question 17

Consideration is best defined as:

Accepted Answer

The benefit or detriment bargained for

Answer

The price paid for goods or services

Answer

The intention to create legal relations

Answer

The subject matter of the contract

Question 18

Intention to create legal relations is presumed in which type of contract?

Accepted Answer

Commercial contracts

Answer

Domestic contracts

Answer

Social agreements

Answer

Agreements made under duress

Question 19

A unilateral contract is formed when:

Accepted Answer

An offer is made to the public and someone performs the requested act.

Answer

One party makes an offer and the other party accepts it orally.

Answer

Both parties sign a written agreement.

Question 20

Which of the following is NOT a valid form of consideration in English contract law?

Accepted Answer

A promise to do something that you are already legally obligated to do.

Answer

The transfer of goods

Answer

The payment of money

Question 21

An offer can be revoked:

Accepted Answer

Any time before it is accepted.

Answer

Only if the offeree has relied on it.

Answer

Only if it is in writing.

Question 22

Which of the following is NOT a way to accept an offer under English contract law?

Accepted Answer

By silence

Answer

By conduct

Answer

By spoken words

Answer

By electronic communication

Question 23

Which of the following is NOT a remedy for breach of contract under English law?

Accepted Answer

Punitive damages

Answer

Specific performance

Answer

Rescission

Answer

Compensatory damages

Question 24

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

Accepted Answer

Past consideration

Answer

Intention to create legal relations

Answer

Acceptance

Answer

Offer

Question 25

A company sends a letter to a potential client outlining the terms of a potential agreement. This letter is best described as a(n):

Accepted Answer

Invitation to treat

Answer

Acceptance

Answer

Counter-offer

Answer

Offer

Question 26

Which of the following is a valid form of consideration?

Accepted Answer

A promise to perform a service

Answer

A promise to refrain from doing something you are not legally entitled to do

Answer

A past benefit received

Answer

A promise to do something you are already legally obligated to do

Question 27

A friend promises to give you a car as a gift, but later changes their mind. This scenario is likely to be unenforceable due to the lack of:

Accepted Answer

Intention to create legal relations

Answer

Offer

Answer

Consideration

Answer

Acceptance

Question 28

Which of the following is NOT a general rule regarding the postal acceptance rule?

Accepted Answer

The acceptance is effective when the letter is sent, even if it is lost or delayed.

Answer

The rule only applies if the parties expressly agree to it.

Answer

The rule only applies to acceptances, not other communications.

Question 29

A contract is made for the sale of a valuable antique. The seller later discovers that the antique is a fake. In this scenario, the contract is likely to be:

Accepted Answer

Voidable

Answer

Void

Answer

Valid

Question 30

A person agrees to buy a house under duress. Which statement is TRUE regarding the contract?

Accepted Answer

The contract is voidable at the option of the person who was pressured.

Answer

The contract is automatically void.

Answer

The contract is valid and enforceable.

Question 31

Two parties agree on the terms of a contract but do not put it in writing. This contract is:

Accepted Answer

Valid but potentially difficult to prove.

Answer

Only valid if it involves a small amount of money.

Answer

Only valid if it can be proven that both parties intended to be legally bound.

Answer

Invalid and unenforceable.

Question 32

A company promises to pay a bonus to its employees if they achieve a certain sales target. This promise is considered a(n):

Accepted Answer

Unilateral contract

Answer

Bilateral contract

Answer

Implied contract