Formation of a Contract Quiz

What are the key elements in the formation of a contract?

• Offer & Acceptance, Consideration, Intention to Create Legal Relations, Privity of Contract

• Offer & Acceptance, Negotiation, Legal Advice, Privity of Contract

• Consideration, Legal Advice, Intention to Create Legal Relations, Negotiation

• Offer & Acceptance, Consideration, Legal Advice, Negotiation

What is a contract?

• A casual agreement between friends

• An enforceable agreement between two parties

• A verbal promise with no legal standing

• A non-binding suggestion

Why are agreements made between two parties?

• To create confusion

• To establish a friendship

• To create legitimate expectations and benefits

• To avoid any obligations

What is the risk if one party relies on a promise that an agreement will be carried out?

• There is no risk involved

• The party may gain unexpected benefits

• The party may risk expenditure or work

• The party will always succeed

What is considered unfair in a contract situation?

• Both parties performing their obligations

• One party escaping their obligation while the other performs

• Both parties avoiding their obligations

• Both parties renegotiating the terms

Which of the following is a definite promise to be legally bound in a contract?

• Acceptance

• Offer

• Consideration

• Intention to create legal relations

Who is the person making an offer in a contract?

• Offeree

• Acceptant

• Offeror

• Consideror

What is the term for unconditional assent to all the terms of an offer?

• Consideration

• Offer

• Acceptance

• Intention

In a contract, what is the price one party pays for the other party’s promise?

• Offer

• Acceptance

• Consideration

• Intention

What must the courts be satisfied with to ensure the parties intended to be bound in a contract?

• Offer

• Acceptance

• Consideration

• Intention to create legal relations