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Contract Law Principles and Modifications Quiz

#1

Which of the following is an essential element for the formation of a valid contract?

Offer and acceptance
Explanation

Mutual agreement between parties

#2

What does the term 'consideration' refer to in contract law?

Payment or something of value exchanged
Explanation

Exchange of value between parties

#3

What is the legal age required for a person to enter into a contract in most jurisdictions?

18
Explanation

Age of majority

#4

What is the purpose of the 'statute of frauds' in contract law?

To require certain types of contracts to be in writing to be enforceable
Explanation

Ensures contracts are documented

#5

Which of the following is NOT a requirement for a valid offer in contract law?

Acceptance
Explanation

Offer made without acceptance

#6

What does the term 'consideration' mean in the context of contract law?

The exchange of promises or something of value between parties to a contract
Explanation

Value exchanged in a contract

#7

Which of the following is NOT a valid way to modify a contract?

Performance of a new contract
Explanation

Creating a new contract instead

#8

What is the legal term for ending a contract before the completion of its terms?

Rescission
Explanation

Cancellation of a contract

#9

Which of the following is a type of contract that must be in writing to be enforceable?

Statute of frauds contract
Explanation

Contracts needing written proof

#10

What is the term for a contract in which both parties fulfill their obligations simultaneously?

Bilateral contract
Explanation

Mutual obligations fulfilled

#11

What is the doctrine of 'frustration' in contract law?

When performance of a contract becomes impossible or radically different due to unforeseen circumstances
Explanation

Contract becomes impossible to fulfill

#12

In contract law, what does the term 'impossibility' refer to?

A situation where performance of the contract becomes illegal or impossible
Explanation

Contractual obligations become illegal or unachievable

#13

In contract law, what is the 'parol evidence rule'?

Rule excluding oral evidence of prior or contemporaneous agreements
Explanation

Prevents oral evidence in court

#14

In contract law, what is 'capacity' referring to?

The legal ability to enter into a contract
Explanation

Legal competence to contract

#15

Which of the following is a remedy for breach of contract where the non-breaching party is compensated for losses suffered?

Damages
Explanation

Compensation for losses

#16

What is the effect of a contract being declared 'void'?

The contract is entirely unenforceable and treated as if it never existed
Explanation

Contract is nullified

#17

Under what circumstances might a court order 'specific performance' as a remedy for breach of contract?

When monetary damages would be insufficient to compensate for the breach
Explanation

When monetary compensation is inadequate

#18

What is the legal term for a contract that has been intentionally misrepresented or deceived?

Contractual fraud
Explanation

Contract based on deceit

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