Legal Aspects of Business MC

Which of the following transactions is closest to being a contract?

• An agreement in which the parties exchange things of value
• An agreement in which there was an offer and the acceptance of the offer
• An agreement made in writing
• A promise between two or more parties

All of the following condition are necessary for a simple contract EXCEPT.

• Offer
• Acceptance
• Written
• Consideration

Han’s car stalled on the motorway. Han asked Luke for assistance. Luke may be able to seek compensation for helping Han by claiming.

• A contract of record existed
• A contract was implied
• Quasi-contractual obligations
• Injustice and file a lawsuit

A valid, legally enforceable contract must contain all of the following EXCEPT

• Counteroffer
• Capacity
• Consideration
• Good faith

When a business advertises an item for sale at a particular price it represents

• An offer by the business
• Consideration by the business
• The agreed selling price
• An invitation to treat

When a party to a contract provides information that in untrue, in the belief that it is true, that party is guilty of all of the following EXCEPT

• Fraudulent misrepresentation
• Breach of contract
• Making the contract voidable
• Innocent misrepresentation

In a situation where one or more of the conditions necessary for a contract is absent the contract is said to be

• In breach
• Void
• Misrepresented
• Fraudulent

David sent a letter to John indicating that he was willing to sell him a bicycle for $500. An offer and its acceptance is deemed to have been made when

• David mailed his letter and John mailed his acceptance of the offer
• David’s letter reached John and John mailed his acceptance of the offer
• David’s letter reached John and John’s acceptance letter reached David
• David mailed his offer and John’s acceptance letter reached David

Bob calls Marley and asks if he is interested in a motorbike for $6000. Marley promptly takes $6000 to Bob and claims the motorbike. Bob refuses to accept the money. Does a contract exist?

• Yes, as there was an offer and an acceptance of the offer
• No, as a specialty contract was required
• Yes, as there was intention to create legal relations and both parties showed consideration
• No, as Bob was only requesting information from Marley

Which of the following is NOT an example of a specialty contract?

• Assignment of copyright
• Purchase of goods for cash
• Hire purchase agreement
• Mortgage