Contract Law Quiz

What is a contract?

• A legally binding agreement between two or more parties

• An informal agreement between friends

• A suggestion for future agreements

• A verbal promise with no legal standing

What does the law of contract set out?

• When a contract exists and when it ends

• The penalties for breaking a contract

• The financial terms of a contract

• The parties involved in a contract

What is an invitation to treat?

• A final offer to enter into a contract

• A rejection of an offer

• An indication that offers are welcomed

• A legally binding agreement

What is an offer in contract law?

• A clear indication of willingness to enter into an agreement

• A suggestion for negotiation

• A demand for payment

• A refusal to negotiate

What is acceptance in contract law?

• The party receiving the offer accepts all terms of the offer

• The party receiving the offer rejects the terms

• The party receiving the offer ignores the terms

• The party receiving the offer makes a counter-offer

What is intention to contract?

• One party intends to deceive the other

• Both parties intend to negotiate further

• Both parties must be aware they are entering a legally binding agreement

• One party intends to withdraw from the agreement

What is consent to contract?

• Being forced into a contract

• Signing a contract under duress

• Entering the contract voluntarily with full knowledge

• Entering a contract without understanding the terms

What is consideration in a contract?

• Each party must give something of value to the other

• One party gives a gift to the other

• A promise made without any exchange

• A verbal agreement with no exchange

What is capacity to contract?

• The willingness to sign a contract

• The financial ability to fulfill a contract

• The ability to negotiate terms

• The legal right to enter into a contract

What is legality of form?

• Certain contracts must be in writing to be valid

• Contracts can be in any form

• Contracts must be signed in front of a witness

• All contracts must be verbal