#1
Which of the following is essential for the formation of a valid contract?
Offer and acceptance
ExplanationOffer and acceptance are fundamental elements that signify mutual agreement.
#2
What is the legal age required for a person to enter into a contract?
18 years
ExplanationA person must be 18 years old to have the legal capacity to enter into a contract.
#3
In contract law, what does 'consideration' refer to?
Something of value exchanged between the parties to a contract
ExplanationConsideration is the value exchanged, essential for the enforceability of a contract.
#4
What is an 'executed contract'?
A contract that has been fully performed by both parties.
ExplanationAn executed contract is one that has been fully performed by both contracting parties.
#5
What is the legal capacity required for individuals to enter into a contract?
They must be at least 18 years old.
ExplanationLegal capacity for contracting requires individuals to be at least 18 years old.
#6
What happens if one party fails to fulfill their obligations under a contract?
The innocent party may sue for breach of contract
ExplanationNon-performance allows the innocent party to seek legal remedies for breach.
#7
What is the difference between void and voidable contracts?
Void contracts have never been valid, while voidable contracts are initially valid but can be voided by one party.
ExplanationVoid contracts lack validity from the outset, while voidable contracts can be invalidated by one party.
#8
What is the doctrine of promissory estoppel in contract law?
A promise made without reliance cannot be enforced if the promisee relied on it to their detriment.
ExplanationPromissory estoppel prevents enforcing promises without detrimental reliance.
#9
What is the purpose of the Statute of Frauds in contract law?
To prevent fraud and perjury by requiring certain contracts to be in writing
ExplanationThe Statute of Frauds mandates written documentation for specific contracts to avoid fraud and perjury.
#10
Which of the following is an example of a unilateral contract?
Offering a reward for the return of a lost pet
ExplanationA unilateral contract involves a promise in exchange for a specific act, like offering a reward for finding a lost pet.
#11
What is the doctrine of frustration in contract law?
It allows a contract to be terminated if unforeseen events make performance impossible, illegal, or radically different from what was originally agreed upon.
ExplanationThe doctrine of frustration enables contract termination in the face of unforeseen events rendering performance impossible, illegal, or substantially different.
#12
Which of the following is not a requirement for a contract to be valid?
Written agreement
ExplanationA written agreement is not universally required for a contract's validity.
#13
What is the difference between an express contract and an implied contract?
An express contract is clearly stated by the parties, while an implied contract is inferred from the actions of the parties.
ExplanationExpress contracts have clear terms, while implied contracts are inferred from parties' actions.
#14
What is the purpose of the parol evidence rule?
To prevent parties from introducing evidence of oral agreements that contradict the terms of a written contract
ExplanationThe parol evidence rule prohibits introducing oral agreements that contradict written contract terms.
#15
Which of the following is a requirement for a contract to be considered unconscionable?
The contract contains terms that are unreasonably favorable to one party
ExplanationA contract is deemed unconscionable if it contains terms unreasonably favorable to one party.
#16
What is the doctrine of 'caveat emptor'?
It means 'let the buyer beware,' indicating that buyers are responsible for checking the quality and suitability of goods before purchase.
ExplanationCaveat emptor advises buyers to beware and be responsible for assessing the quality and suitability of goods before purchase.