CONTRACT

A contract is a ______ binding agreement between 2 or more persons, intended to create ______ ______ and is enforceable by law.

• legally, legal obligation

• verbal, simple obligation

• invitation, legal obligation

• offering, legal obligation

There must be _______ and ______ for a contract to be binding.

• lapse, time

• offer, acceptance

• offer, invitation

• conditions, terms

Offer is a _______ in exchange for performance by another party.

• consideration

• promise

• capacity

A contract is considered to be executed when

• both parties have fulfilled their obligations

• the contract still has to be completed

• there is offer and acceptance

• it is lawful

A contract is said to be executory when

• both parties have fulfilled their obligations

• the contract still has to be completed

• it is lawful

• there is a lapse of time

Which of the following is not a characteristics of a contract?

• Capacity to contract

• Invitation to Treat

• Consideration

• Legality

All are examples of a simple contract except

• Rent or lease under 3 years

• sale of land

• hire purchase agreement

• mortgage or leases over 3 years

A contract may be terminated by all of the following except

• lapse of time

• performance

• the death of one party

• theft

An invitation to treat is an ______ to ____ or bargain for an item.

• offer, consideration

• consideration

• invitation, bid

• order, build

An example of a simple contract is /an

• transfer of company shares

• implied contract

• sale of land

• contracts of insurance