Contract Law Quiz

What is a contract?

• A) A formal agreement between three or more parties

• B) An enforceable agreement between two parties

• C) A non-binding arrangement between friends

• D) A legal document only used in property transactions

Why are contracts enforced?

• A) To ensure that there is no benefit expected from the agreement

• B) To create legitimate expectations that the agreement will not be carried out

• C) To allow parties to avoid their obligations without consequences

• D) To create legitimate expectations that the agreement will be carried out and a benefit will be expected

What is considered unfair in the context of contracts?

• A) If both parties perform their obligations

• B) If one party is ready to perform or has performed, and the other party also performs their obligation

• C) If one party is ready to perform or has performed, and the other party escapes/avoids their obligation

• D) If both parties decide to terminate the contract mutually

What is the term used to describe a person making an offer in a contract?

• Offeree

• Acceptant

• Offeror

• Considerator

What must both parties provide for a consideration to be valid in a contract?

• A written agreement

• A promise of employment

• Something of value

• A legal witness

Which element of a contract refers to the unconditional assent to all the terms of the offer?

• Offer

• Acceptance

• Consideration

• Intention to create legal relations

For a contract to be enforceable, what must the courts be satisfied with regarding the parties' intentions?

• That the parties intend to change the offer

• That the parties intend to be bound legally

• That the parties intend to negotiate further

• That the parties intend to create a verbal agreement

What is a unilateral contract?

• A contract where both parties make a promise to each other.

• A contract where one party makes a promise in exchange for the other party's promise to perform an act.

• A contract where one party makes a promise in exchange for an act or abstention from acting by another party.

• A contract that is not enforceable by law.

What is a bilateral contract?

• A contract where only one party receives a benefit.

• A contract where one party makes a promise that is not dependent on the other party's performance.

• A reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party's act.

At what point is a CONTRACT formed according to the left side of the diagram?

• When Party A makes an OFFER

• When Party B ACCEPTS the offer

• When Party B makes an OFFER TO BUY

• When Party A makes an INVITATION TO TREAT