Formation of Contracts: Essential Concepts for Law and Public Services

Question 1

Which of the following is NOT a requirement for consideration in a contract?

Accepted Answer

It must be in writing

Answer

It must be of value to both parties

Answer

It must be bargained for

Answer

It must be capable of being performed

Question 2

Intention to create legal relations is:

Accepted Answer

Presumed in all contracts unless expressly stated otherwise

Answer

Automatic in commercial contracts

Answer

Unnecessary in social agreements

Answer

Required only in written contracts

Question 3

A legally enforceable contract can be formed even if:

Accepted Answer

There is no written agreement

Answer

One party does not fully understand the terms

Answer

The contract involves illegal or immoral activities

Answer

Both parties are intoxicated

Question 4

Which of the following is NOT a type of implied term that can be incorporated into a contract?

Accepted Answer

Term of mutual trust and confidence

Answer

Term of merchantability

Answer

Term of fitness for purpose

Answer

Term of reasonable notice

Question 5

When a contract is formed with the clear intention of creating legal obligations, it is referred to as a/an:

Accepted Answer

Formal contract

Answer

Informal contract

Answer

Quasi-contract

Answer

Social contract

Question 6

An express contract is one that:

Accepted Answer

Is formed through spoken or written words

Answer

Is written and signed by both parties

Answer

Is implied by the conduct of the parties

Answer

Is legally binding even if one party is a minor

Question 7

In accordance with statutory regulations, which of the following is NOT a requirement for a contract involving the sale of goods exceeding £25?

Accepted Answer

Witness attestation

Answer

Written form

Answer

Signatures from both parties

Answer

Specification of quantity and price of goods

Question 8

In unilateral contracts, acceptance is typically expressed through:

Accepted Answer

An act or performance

Answer

A written agreement

Answer

An oral promise

Answer

A payment

Question 9

When an offer is made to the general public, it can be accepted by:

Accepted Answer

Anyone who meets the conditions of the offer

Answer

Only those who are specifically named in the offer

Answer

Only those who have a pre-existing relationship with the offeror

Answer

Only those who have paid consideration for the offer

Question 10

Consideration can be best defined as:

Accepted Answer

The benefit or detriment bargained for that induces a party to enter into a contract

Answer

The promise made by one party to another

Answer

The legal obligation created by a contract

Answer

The damages awarded for breach of contract

Question 11

An offer can be revoked:

Accepted Answer

At any time before acceptance

Answer

Only before the offeree has begun to perform

Answer

Only if the offer is made in writing

Answer

Never, once made

Question 12

When an offer is made to the public at large, it is classified as an:

Accepted Answer

Invitation to treat

Answer

Unilateral offer

Answer

Bilateral offer

Answer

Counteroffer

Question 13

Which type of consideration involves a promise to perform an act in exchange for something of value?

Accepted Answer

Executory consideration

Answer

Past consideration

Answer

Executed consideration

Answer

Illegal consideration

Question 14

What legal concept refers to a person's eligibility to enter into a legally binding contract?

Accepted Answer

Capacity to contract

Answer

Majority

Answer

Legal status

Answer

Authorization

Question 15

What is the legal effect of a counteroffer?

Accepted Answer

It terminates the original offer

Answer

It modifies the original offer

Answer

It accepts the original offer

Answer

It has no impact on the original offer

Question 16

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

Accepted Answer

Inadequate consideration

Answer

Fraud

Answer

Mistake

Answer

Undue influence

Question 17

What term describes a contract that is formed without any written or spoken words?

Accepted Answer

Implied contract

Answer

Verbal contract

Answer

Written contract

Answer

Express contract

Question 18

A minor (person under the age of 18) enters into a contract to purchase a car. The contract is later challenged on the grounds of the minor's age. Which element of contract formation is being questioned?

Accepted Answer

Capacity to contract

Answer

Offer

Answer

Consideration

Answer

Acceptance

Question 19

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

Accepted Answer

The offer must be in writing.

Answer

The offer must be clear and definite.

Answer

The offer must be communicated to the offeree.

Question 20

A city council makes an offer to a construction company to build a new park. The construction company accepts the offer, but later discovers an error in the council's calculations, resulting in a significantly lower price than intended. Which legal principle may apply in this situation?

Accepted Answer

Mistake

Answer

Duress

Answer

Misrepresentation

Answer

Undue influence

Question 21

A charity organization asks for donations through a public appeal. A potential donor verbally promises to donate a substantial amount, but later changes their mind. Is the charity legally entitled to the promised donation?

Accepted Answer

No, as there is no consideration.

Answer

Yes, as there is a clear promise.

Answer

It depends on the terms of the appeal.

Answer

Yes, as charitable donations are legally binding.

Question 22

A company promises a bonus to its employees if they achieve a certain sales target. The employees achieve the target, but the company subsequently refuses to pay the bonus. Which legal principle may be relevant in this case?

Accepted Answer

Promissory estoppel

Answer

Undue influence

Answer

Duress

Answer

Misrepresentation

Question 23

A homeowner agrees to sell their house to a buyer. Before the closing date, the buyer experiences a sudden illness that prevents them from completing the purchase. Which legal principle might apply in this situation?

Accepted Answer

Frustration

Answer

Misrepresentation

Answer

Duress

Answer

Undue influence