CONTRACTS

Multiple Choice

Which of the following is NOT typically an objective when studying contracts?

• Explaining the concept of contract

• Identifying the types of contracts

• Describing the process of criminal investigation

• Explaining ways contracts may be terminated

Open Ended

Why is it important to understand the concept of a contract in everyday life and business?

Multiple Choice

What is a contract?

• A formal agreement between family members only.

• A legally binding agreement between two or more parties.

• A verbal promise with no legal implications.

• A written document that is not legally enforceable.

Multiple Choice

What is the main difference between an agreement and a contract?

• A contract is legally enforceable, while an agreement is not.

• An agreement involves only one party, while a contract involves two or more.

• A contract does not require consideration, while an agreement does.

• An agreement is always written, while a contract is always verbal.

Multiple Choice

After talking to the salesman on the phone, Molley agree to buy a set of glassware. What type of contract is this?

• Oral

• Unenforceable

• Valid

• Written

Multiple Choice

Which of the following is NOT a basic element of a contract?

• Agreement

• Intention to create legal relations

• Valuable consideration

• Promise to donate

Open Ended

List and briefly explain the three basic elements required for a contract to be valid.

Fill in the Blanks

Fill in the blank: In a contract, the party who makes the offer is called the

.

Multiple Choice

Jim purchases a rare antique piece for $5,000. The contract was signed by both parties. in this scenario, who is Jim?

• donee

• donor

• offeree

• offeror

Multiple Select

Which of the following are parties to a contract?

• Offerer

• Offeree

• Acceptor

• Mediator

Open Ended

Explain the main differences between a simple contract and a speciality contract.

Multiple Choice

Which of the following statements about an invitation to treat is correct?

• It is a legally binding offer.

• It is an invitation to make an offer.

• It is a contract between two parties.

• It is the acceptance of an offer.

Open Ended

Give two examples of situations that would be considered an invitation to treat.

Multiple Choice

Which of the following is NOT a requirement for a speciality contract?

• Signing by both parties

• Sealing with a raised seal

• Delivery of a copy to both parties

• Implied by conduct

Multiple Choice

What is the key difference between an invitation to treat and an offer?

• An invitation to treat is a legally binding contract, while an offer is not.

• An invitation to treat is an invitation to make an offer, while an offer shows willingness to enter a contract.

• An invitation to treat is always accepted, while an offer is always rejected.

• An invitation to treat requires a signature, while an offer does not.

Open Ended

Define the term 'counter offer.'

Multiple Choice

Which of the following is NOT a principle of a valid contract?

• Offer

• Acceptance

• Negotiation

• Good faith

Multiple Choice

What is the main difference between an offer and a counter offer?

• An offer is a proposal to be legally bound, while a counter offer rejects the original offer and proposes new terms.

• An offer is always accepted, while a counter offer is always rejected.

• A counter offer is made before an offer.

• An offer is made by the seller, while a counter offer is made by the buyer.

Fill in the Blanks

Fill in the blank: Acceptance is when the

willingly agrees to the terms of the offer made by the offerer.

Open Ended

Explain the concept of consideration in a contract and provide an example.

Multiple Select

Which of the following are required for a party to have capacity to enter into a contract?

• Being of sound mind

• Being of legal age

• Not being influenced by drugs or alcohol

• Being a citizen

Multiple Choice

Which of the following best describes the principle of 'good faith' in a contract?

• All parties must engage in the agreement freely and honestly, with genuine intention.

• All parties must agree to the contract without negotiation.

• Only one party needs to act honestly in a contract.

• Contracts must always be written to be valid.

Open Ended

Explain why it is important for the parties to a contract to be in a position to deliver the requirements of the contract.

Multiple Choice

Which of the following would make a contract illegal and void?

• If the contract involves any illegal acts or promotes civil wrongs, crime, or immorality.

• If the contract is not written down.

• If the contract is not signed by a witness.

• If the contract is between two companies.

Fill in the Blanks

Acceptance of an offer must be

for a contract to be valid.

Open Ended

Compare and contrast 'performance' and 'breach of contract' as ways of terminating a contract.

Multiple Select

Select all the correct ways a contract can be discharged or terminated.

• By performance

• By breach of contract

• By lapse of time

• By mutual agreement

Open Ended

After learning about contracts, what is one question you still have or something you would like to know more about?

Multiple Choice

Which of the following is NOT one of the objectives listed for the lesson on contracts?

• Explain the concept of contract.

• Identify the types of contracts.

• Describe the process of contract enforcement in court.

• Apply the principles of a simple contract to cases.