Quiz: Elements of Contracts

There is a legally binding contract in the following situation:

• The terms of an agreement are uncertain.

• A businessman concludes an agreement with his supplier to provide him with one ton of black peppercorns.

• A twelve year old enters a jewellery shop to purchase on credit a RM 150,000 diamond ring.

• A husband promises RM5.000 to his wife if she gives him a hug everyday.

In order to prove that a contract by a minor is binding due to 'necessaries', the following

conditions have to be considered EXCEPT:

• the minor actual needs.

• the minor's interests.

• the minor's condition of life.

• the minor's occupation.

Which of the following will NOT render the contract voidable?

• representation

• coercion

• undue influence

• fraud

Joshveer offered by letter to buy his nephew's car for RM13,000 adding, 'If I hear nothing from you, I shall consider the car is mine at RM13,000.' Although the nephew did not reply to the letter, he told Burnett, a second hand car dealer, with whom he had left the car for sale, to reserve it for Joshveer. Burnett sold the car by mistake. Advise Joshveer whether he has a claim against his nephew.

• Yes, since there is a valid acceptance when his nephew asked Burnett to reserve it for Joshveer

• No. Because his nephew did not reply within a reasonable time

• Yes, because his nephew did not refuse to such offer

• No. Because mere silence is not considered as an acceptance

Ajit agrees to supply fifty packets of self-rising flour to Sonia at RM2 per packet or RM3 per packet. Discuss the legal status of such agreement.

• Valid. Sonia can choose to buy for cheaper price.

• Void. The agreement is not certain.

• Voidable. The agreement is not capable of being made certain.

• Valid. The consideration is sufficient although not adequate.

If a letter of acceptance arrived after the expiry of the date of proposal, can the acceptor claim a valid contract? Explain with relevant authority.

• No, Fisher v Bell

• Yes, Simpkins v Pay

• Yes, Ignatius v Bell

• Yes, Carlill v Carbolic Smoke Ball

Which of the following statements is FALSE?

• A minor does not have the capacity to enter into any type of contract

• An advertisement for a reward of RM800 for the return of a lost dog is a proposal

• There is a presumption that no intention to create a legal relation exists when a husband and a wife deal with one another

• A promise to compensate a past voluntary act is a valid contract

If the sound of an oral acceptance is drowned by a passing aircraft, is there a contract?

• Yes, acceptance may be done orally

• No, acceptance may be revoked

• Yes, silence amounts to acceptance

• No, acceptance must be communicated

Noisy, while semi-conscious because of high fever, agreed to sell a bungalow that is worth of RM 1 million to Michel, her personal nurse, for just RM 100,000.This contract may be avoided later for

• Fraud

• Misrepresentation

• Undue influence

• Coercion

Everybody is competent to make a contract if he is an adult, of... and not being legally...

• stable income ... misrepresented

• sound economic background ... educated

• good behaviour... corrupted

• sound mind ... disqualified