Contract Law Quiz

What is a contract?

• A formal agreement enforceable by law between three or more parties

• An enforceable agreement between two parties

• A non-binding arrangement between friends

• A legal document only used in international trade

Why are contracts enforced?

• To ensure that there is no benefit expected from the agreement

• To prevent parties from relying on promises

• To ensure that agreements made between two parties are carried out and benefits are expected

• To make sure that all agreements are performed without any expectations

What is the risk involved for parties in a contract?

• There is no risk as contracts are not enforceable

• Parties risk expenditure or work in reliance on a promise that an agreement will not be carried out

• Parties will risk expenditure or work in reliance on a promise that an agreement will be carried out

• Parties risk nothing as all contracts are guaranteed by the government

Why would it be unfair for one party to escape their obligation in a contract?

• Because contracts are meant to be broken

• Because it would be unfair if one party is ready to perform or has performed, and the other party should escape/avoid their obligation

• Because the party escaping their obligation would benefit more

• Because contracts are not legally binding

What is the term used to describe a person making an offer in a contract?

• Offeree

• Considerator

• Promisor

• Offeror

What must both parties provide in a contract for it to be considered valid under the element of consideration?

Which element of a contract requires the courts to be satisfied that the parties intended to be legally bound?

• Offer

• Acceptance

• Consideration

• Intention to create legal relations

What is required for acceptance in the context of contract elements?

• Conditional agreement to some terms

• Unconditional assent to all the terms of the offer

• A verbal agreement

• A handshake

What is a unilateral contract?

• A contract where both parties agree to perform an act in exchange for the other party's act.

• A contract where one party makes a promise in exchange for the other party's promise to do something.

• A contract where one party, known as the offeror, makes a promise in exchange for an act by another party, known as the offeree.

• A contract that is signed by only one party and is legally binding without the other party's consent.

What is a bilateral contract?

• A contract where one party promises to perform an act without expecting anything in return.

• A contract where one party makes a promise in exchange for the other party's promise to do something.

• A reciprocal arrangement between two parties by which each promises to perform an act in exchange for the other party's act.

• A contract where one party, known as the offeror, makes a promise in exchange for the other party's act of abstention from acting.