BUSINESS LAW- CHAPTER 2

Promisor also know as_______________.

• offeree

• offeror

• proposal

• promisee

A contract may be discharged by ________________.

• coercion

• intention

• damages

• agreement

Which of the following statement is TRUE regarding offer?

• An invitation to treat is an offer

• An offer must be communicated

• Definition of offer can be found in Section 2(b) of the Contracts 1950

• An offer made in words (oral or written) is said to be expressed

Which of the following is NOT the element of contract?

• Intention to create legal action

• Capacity to enter into contract

• Offer and acceptance

• Formalities of a contract

Based on the law of the contract, a contract made under fraud is a _____________________.

• voidable contract

• void contract

• valid contract

• breach of contract

All the followings agreements are void EXCEPT:

• An agreement made with inadequate considerations

• An agreement in restraint of trade

• An agreement by wager

• An agreement with uncertain term which is not capable of being made certain

The general rules state that contracts made by minors are void EXCEPT:

• Contracts of buying product

• Contracts of partnership

• Contracts of scholarship

• Contracts of sales of goods

Section 14 of the Contract Act 1950 states that the consent is said to be free when it is not caused by______

• Coercion

• Undue influence

• Capacity

• Misreprentation

Any modification of the offer is called as ______________and it is a rejection of the original offer.

• Acceptance

• Invitation to treat

• Counter offer

• Counter acceptance

Below are basic elements of a valid contract EXCEPT

• Offer

• Mistake

• Consideration

• Certainty