#1
Which of the following elements are essential for the formation of a valid contract?
All of the above
ExplanationOffer, acceptance, consideration, intention to create legal relations.
#2
What is the legal effect of an 'illegal contract'?
It is void and unenforceable.
ExplanationContracts involving illegal activities are invalid and cannot be enforced.
#3
What is 'revocation' of an offer in contract law?
The withdrawal of an offer by the offeror
ExplanationOfferor's withdrawal of the offer before acceptance.
#4
What is 'liquidated damages' in contract law?
Damages agreed upon by the parties in the contract, to be paid in case of breach
ExplanationPre-determined damages specified in the contract for a breach.
#5
What is the statute of frauds?
A law that requires certain contracts to be in writing to be enforceable
ExplanationStatute mandating written documentation for specific contracts, e.g., real estate transactions.
#6
Which of the following is NOT a valid way to terminate a contract?
Innocent misrepresentation
ExplanationInvalid method; valid ways include mutual agreement, breach, frustration of purpose.
#7
What is the difference between bilateral and unilateral contracts?
Bilateral contracts involve promises from both parties, while unilateral contracts involve promises from only one party.
ExplanationMutual promises (bilateral) vs. promise for an act (unilateral).
#8
What is the doctrine of 'capacity' in contract law?
The doctrine that parties must have the legal capacity to enter into a contract
ExplanationRequirement that parties must have mental competence to form a contract.
#9
What is the 'parol evidence rule'?
A rule that prohibits parties from presenting extrinsic evidence that contradicts the written terms of a contract
ExplanationRestriction on introducing external evidence to alter written contract terms.
#10
What is the doctrine of 'frustration of purpose'?
A doctrine that excuses performance when the purpose of the contract has become impossible to fulfill
ExplanationRelieves performance if contract purpose becomes impractical or impossible.
#11
What is the doctrine of 'promissory estoppel'?
A doctrine that allows a party to recover damages for reliance on a promise, even if the promise is not supported by consideration
ExplanationEnforcement of a promise due to detrimental reliance, regardless of consideration.
#12
What is 'specific performance' in contract law?
A remedy where the court orders a party to perform its contractual obligations as agreed
ExplanationCourt-ordered fulfillment of contractual obligations.