Law of Contract

Which of the following statements regarding intention to create legal relations is          correct in regards to the law of contract?

• Social arrangements are generally intended to be legally binding 


• Commercial arrangements are generally not intended to be legally binding 


• A contract will be legally binding if both parties intended it to be so

Which of the following statements is NOT a lawful excuse for failing to perform            contractual obligations? 
        

• Actual performance is impossible

• Both parties agreed to non-performance

• Performing the contract will cause the party concerned financial hardship

Which of the following is NOT a remedy for an action of misrepresentation?

• Rescission

• Injunction

• Damages

Which of the following explains what an injunction is in the context of remedies for breach of contract?

 

                      (1)          An order requiring the defendant to refrain from doing something
                      (2)          An order requiring the defendant to do something

                      (3)          An order requiring the defendant to perform their part of the contract

• (1), (2) and (3)

• (1) and (2) only

• (2) and (3) only

• (3) only

Which of the following agreements are valid and enforceable without consideration?

(1)          An agreement to repay a debt barred by limitation
(2)          A scholarship agreement

(3)          An agency agreement

(4) An agreement for past action

• (1) and (3) only

• (1) and (4) only

• (2) and (3) only

• (1), (2) and (3)  

Marriage contract entered into by a minor is

• voidable at the option of the minor

• void

• valid

Which of the following is not a valid method of acceptance?     

• the offeree’s express words

• the offeree’s conduct

• Silence of the promisee

When Leman promised to pay a reward of RM1000 if his Persian cat is found and returned to him

• It is a unilateral contract where acceptance need not be communicated

• Leman’s promise is actually an invitation to treat waiting for the finder to make an offer.

• The consideration of RM1000 is not sufficient for the return of a Leman’s Persian cat because it is not agreed by the finder.

• Leman’s offer is not valid because it is made to the world at large and not to specific people.

Alice entered into a contract with Betty for the purchase of Betty’s house at the price of RM380,000. Last week, Betty

informed Alice that she does not wish to sell the house to Alice.

If Alice sues Betty for breach of contract, which of the following remedies is most appropriate?

• Rescission

• Injunction

• Damages

• Specific performance

In which of the following ways may terms be implied into a contract?

(1) By law

(2) By custom

(3) By the court

(4) By agreement

• (1) and (2) only

• (1) and (3) only

• (1), (2) and (3)

• (4) only