WorksheetsUnit 2: Contracts (Types, Classification and Terms)
Total questions: 30
Worksheet time: 26mins
1. True or False: Agreements must be in writing to be enforceable.
True
False
1. When an offerree accepts an offer, but changes the original terms of that offer, the offerree’s acceptance is called _______________:
A negotiation
A provision
A counteroffer
An option
Fred makes a written offer to sell his house to Cynthia for $250,000. Cynthia responds in writing by saying, "I accept your offer provided that you replace the aging roof.” Is this a valid acceptance?
Yes, it mirrors Fred's asking price so it is still valid.
Yes, it is a sale of real estate and the acceptance is made in writing.
No, this is a counteroffer and it terminates the original offer.
No, she fails to indicate the relevant term of roof replacement cost.
What is a bilateral contract?
A bilateral contract is where only one party makes a promise to the other party. It does not include an exchange of promises.
A bilateral contract falls short of being a legally binding contract as it does not have the requisite intention.
A bilateral contract is where the parties make promises to each other. The contract gives rights to and places obligations on both parties.
A bilateral contract is a contract that is not condensed into writing and whereby only those terms expressly agreed are incorporated.
Carlil v Carbolic Smoke Ball Company Ltd [1893] 1 QB 256 CA provides an example of a bilateral contract.
True
False
What forms can a unilateral contract take?
Please select ALL that apply.
Unilateral contracts are where both parties make explicit promises to do something.
Unilateral contracts are where only one party makes a promise to do something.
A unilateral contract is where one party is in breach of the contract to the other party.
Nobody is under an obligation to perform the conditions in the offer.
Unilateral contracts tend to involve the offer of a reward if the conditions in the reward offer are satisfied by anyone who wishes to claim the reward. The wording of the reward offer makes it clear that no further negotiations or bargaining is required.
An illegal contract generally would be considered
Valid.
Voidable.
Implied.
Void.
Carlson fully performed her part of a contract to the complete satisfaction of Briggs, who has not yet paid Carlson. This is an example of a(n)
executory contract.
executed contract.
formal contract.
void contract
Contracts that involve important or complicated matters should be
implied in fact.
Written.
breached.
Implied in law.
Bart agreed to sell Sean his motorcycle for $1500. Sean paid Bart $1500, and Bart promised delivery the next day. This is an example of a(n)
implied contract.
executed contract.
executory contract.
void contract.
A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.
Bilateral
Unilateral
Express
Invitation to Negotiate
A contract containing two promises in which one party promises to do something in exchange for the other party to do something else.
Express
Bilateral
Unilateral
Implied
Contract where performance alone is acceptance
unilateral
bilateral
multilateral
A synonym for important in contract terms is 'material'
True
False
If I offer you $50,000 to fraudulently sell you a property - what type of contract would this be categorised as?
a void contract
a voidable contract
an unenforceable contract
Siti Aliza, a famous singer, has been forced to sing at the Elite Night Club for 12 hours per day.
What is the legal effect of the above contract?
Void
Valid
Voidable
Enforceable
One party attempts to cut down either the scope of his contractual duties or regulate the other parties right to damages or other possible remedies for breach of contract
exemption clause
implied term
express term
privity
David bought a plot of land from Tom for $20,000. Tom had threatened to expose a past misdeed of David's if he did not purchase the land. The contract is void because:
there was no agreement
there was no good faith
there was no consideration
there was no acceptance
John offers to sell Henry a plot of land for $50,000. Henry writes to John saying he is willing to purchase the land for $40,000. Henry's offer is:
a simple contract
consideration
a specialty contract
a counter offer
A specialty contract must be _________, ___________ and delivered.
simple, express
implied, void
written, spoken
signed, sealed
A simple contract can be oral, written or _________.
documented
implied
spoken
special
A hire purchase is an example of a specialty contract.
TRUE
FALSE
The sale of land for the building of a hotel is a _____________ contract.
specialty
simple
