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Contractual Agreements Quiz

#1

What is an offer in a contractual agreement?

A proposal made with the intention of creating a legally binding contract
Explanation

Offer: Proposal for a contract.

#2

Which element is essential for the validity of a contract?

Mutual agreement
Explanation

Mutual agreement: Agreement between parties.

#3

What is consideration in a contractual agreement?

A promise or something of value exchanged for the promise of the other party
Explanation

Consideration: Something of value exchanged in a contract.

#4

Which of the following contracts must be in writing to be enforceable?

Sale of goods over $500
Explanation

Contracts over $500 require writing.

#5

What is the statute of frauds in contract law?

A law that requires certain contracts to be in writing to be enforceable
Explanation

Statute of Frauds: Certain contracts require writing.

#6

What is the difference between void and voidable contracts?

Void contracts are valid until revoked, while voidable contracts can be canceled by one party.
Explanation

Void vs. Voidable: Void cannot be enforced; voidable can be canceled.

#7

Which of the following is an example of a unilateral contract?

A reward offer
Explanation

Unilateral Contract: Promise in exchange for performance.

#8

What is the difference between a bilateral and a unilateral contract?

A bilateral contract involves promises from both parties, while a unilateral contract involves a promise from only one party.
Explanation

Bilateral vs. Unilateral: Both promise vs. one promise.

#9

What is the doctrine of frustration in contract law?

A contract becomes impossible to perform due to unforeseen circumstances beyond the control of the parties
Explanation

Frustration: Contract becomes impossible due to unforeseen events.

#10

What is promissory estoppel in contract law?

A doctrine that prevents a party from denying a promise when the other party relies on it to their detriment
Explanation

Promissory Estoppel: Prevents denial of promise if reliance causes harm.

#11

What is the parol evidence rule in contract law?

A rule that prohibits the introduction of oral evidence to contradict the terms of a written contract
Explanation

Parol Evidence Rule: Prevents oral evidence against written contract.

#12

What is the doctrine of impossibility in contract law?

A doctrine that applies when one party's performance becomes objectively impossible due to unforeseen circumstances
Explanation

Impossibility: Performance becomes impossible due to unforeseen events.

#13

What is the doctrine of privity of contract?

A doctrine that prevents third parties from enforcing a contract
Explanation

Privity of Contract: Only parties can enforce contract.

#14

What is specific performance in contract law?

A remedy that requires a party to fulfill their contractual obligations as agreed
Explanation

Specific Performance: Court orders fulfillment of contract terms.

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