Contract Law

Which of the following is not an element of a valid contract?

• Offer & Acceptance

• Certainty

• Consideration

• Invitation to Treat

Anthony agrees to sell a house worth RM500,000 to Ben for RM100.

• The agreement is valid even though consideration is inadequate.

• The agreement is not valid because consideration is inadequate.

• The agreement is valid only if Ben is willing to pay more.

• The agreement is voidable because consideration is inadequate.

A void contract is an agreement not enforceable by law.

• True

• False

The contracts made by infants / minors are void.

• True

• False

Terms may be implied by:

• statutory provisions

• custom and usage

• the courts

• all listed here

A breach of a ____ entitles the innocent party to terminate the agreement and sue for damages.

• Warranty

• Condition

• Express term

• Exclusion Clause

Which of the following is NOT TRUE?

• Express terms must be made in writing.

• Implied terms are those which the law says are in the contract even if the parties did not include them themselves

• Terms may be implied by statutory provisions or common law

• a condition is an important term of a contract

What are the factors that will vitiate a contract?

• Coercion

• Undue influence

• Fraud and misrepresentation

• All listed here

What is the contra proferentum rule?

• If the exemption clause is unclear, it will be interpreted against the maker of the exemption clause

• All exemption clauses must be interpreted according to the preference of the maker of the exemption clause.

• Exemption clause may be incorporated where the parties have previous dealings with constitute a course of dealings

• None listed here

In the case L’Estrange v Graucob [1934] 2 KB 394, what is general principle decided by the Court?

• The party signing is bound by the EC. Does not matter whether the party has read the document or not.

• The party signing is bound by the EC. But the party has to read the document.

• The party does not need to sign the written document to be bound by the EC.

• The party is bound by the EC as long as he has seen the EC.