Contract Law Quiz

What ensures that parties in a contract have the ability to understand its terms?

• Capacity

• Incapacity

• Inability

• Weakness

Mr White promises to paint Mr Brown's house and Mr Brown promises to pay him £1000 for the work. What type of contract is this?

• Unilateral contract

• Bilateral contract

• No contract

• Agreement

Why is a unilateral contract called "unilateral"?

• Because both parties make promises

• Because it involves multiple parties

• Because the contract arises without the offeree making any promise

• Because it requires a written agreement

What happens if the offeree does not perform the act in a unilateral contract?

• The contract is void

• The offeror must renegotiate

• The contract does not come into existence

• The offeree is penalized

What is the main obligation in a unilateral contract?

• Both parties must agree

• One party must perform an act

• Both parties must sign a document

• One party must provide a service

Which of the following are considered invitations rather than offers? Select all that apply.

• Agreements

• Auctions

• Advertisements

• Price quotations

A reply to an offer which introduces new terms will not be considered an acceptance, as it is considered a counter offer.

• True

• False

What is the presumption taken by the courts in relation to parties who enter into social arrangements

• Legally binding

• Not Legally binding

Which of the following in NOT an essential element of a valid contract.

• Capacity

• Intention

• Consideration

• Invitation to treat

What must the parties have to enter into a contract?

• Capacity

• Wealth

• Knowledge

• Experience