NEW
Font size
WorksheetsQuiz: Elements of Contracts
Total questions: 25
Worksheet time: 1hrs 15mins
There is a legally binding contract in the following situation:
The terms of an agreement are uncertain.
A businessman concludes an agreement with his supplier to provide him with one ton of black peppercorns.
A twelve year old enters a jewellery shop to purchase on credit a RM 150,000 diamond ring.
A husband promises RM5.000 to his wife if she gives him a hug everyday.
In order to prove that a contract by a minor is binding due to 'necessaries', the following
conditions have to be considered EXCEPT:
the minor actual needs.
the minor's interests.
the minor's condition of life.
the minor's occupation.
Which of the following will NOT render the contract voidable?
representation
coercion
undue influence
fraud
Joshveer offered by letter to buy his nephew's car for RM13,000 adding, 'If I hear nothing from you, I shall consider the car is mine at RM13,000.' Although the nephew did not reply to the letter, he told Burnett, a second hand car dealer, with whom he had left the car for sale, to reserve it for Joshveer. Burnett sold the car by mistake. Advise Joshveer whether he has a claim against his nephew.
Yes, since there is a valid acceptance when his nephew asked Burnett to reserve it for Joshveer
No. Because his nephew did not reply within a reasonable time
Yes, because his nephew did not refuse to such offer
No. Because mere silence is not considered as an acceptance
Ajit agrees to supply fifty packets of self-rising flour to Sonia at RM2 per packet or RM3 per packet. Discuss the legal status of such agreement.
Valid. Sonia can choose to buy for cheaper price.
Void. The agreement is not certain.
Voidable. The agreement is not capable of being made certain.
Valid. The consideration is sufficient although not adequate.
If a letter of acceptance arrived after the expiry of the date of proposal, can the acceptor claim a valid contract? Explain with relevant authority.
No, Fisher v Bell
Yes, Simpkins v Pay
Yes, Ignatius v Bell
Yes, Carlill v Carbolic Smoke Ball
Which of the following statements is FALSE?
A minor does not have the capacity to enter into any type of contract
An advertisement for a reward of RM800 for the return of a lost dog is a proposal
There is a presumption that no intention to create a legal relation exists when a husband and a wife deal with one another
A promise to compensate a past voluntary act is a valid contract
If the sound of an oral acceptance is drowned by a passing aircraft, is there a contract?
Yes, acceptance may be done orally
No, acceptance may be revoked
Yes, silence amounts to acceptance
No, acceptance must be communicated
Noisy, while semi-conscious because of high fever, agreed to sell a bungalow that is worth of RM 1 million to Michel, her personal nurse, for just RM 100,000.This contract may be avoided later for
Fraud
Misrepresentation
Undue influence
Coercion
Everybody is competent to make a contract if he is an adult, of... and not being legally...
stable income ... misrepresented
sound economic background ... educated
good behaviour... corrupted
sound mind ... disqualified
On 1st Jun 2008, Dayang wrote to Wira, proposing to sell her boutique at RM200.000. They agreed to use postal communication. Wira posted a letter of acceptance on 13th Jun and the letter reached Dayang on 15th Jun 2008. Meanwhile, having been offered a higher price by Anggun, Dayang called Wira on 14th Jun 2008 to withdraw her proposal to sell the boutique.
Advise Wira who wishes to bring legal action against Dayang.
Wira cannot sue Dayang as she legally revoked her proposal before the letter of acceptance arrived.
Wira can sue Dayang since he posted the letter of acceptance before Dayang revoked her proposal.
Wira cannot sue Dayang since the acceptance was not complete
Wira can sue Dayang since the letter of acceptance arrived before the offer was made.
When Wahab makes a proposal to Haji Bakhil, Haji Bakhil has the choice to accept or to reject it. But if Haji Bakhil changes a vital term of the proposal, e.g. price of the goods, Haji Bakhil is said to have made
an offer
an invitation to treat
an acceptance.
a counter offer
Liam entered into a contract to purchase 20 toness of Basmathi rice from Fred. Fred made an arrangement to transport the rice by a ship called the Sea Master which was to arrive at Port Klang on 20 December 2018. Unknown to the parties, another ship also named the Sea Master was also scheduled to carry rice and will arrive at Port Klang on 11 November 2018. Liam believed that the rice he purchased will arrive in Port Klang on board the Sea Master in November 2018. Advise the parties as to whether a contract exist between them.
No, the contract does not exists as both parties made a mutual mistake
No, the contract does not exists as Fred made a misrepresentation to Liam
No, the contract does not exists as both parties agreed to sale and purchase of different subject matter.
No, the contract does not exists because the subject matter did not arrived within a reasonable time
According to Section 14 of the Contract Acts 1950 consent must be free. It is said not to be free if caused by
representation
fraud
unsound mind
uncertainty
The following are the classifications of consideration EXCEPT
fixed consideration
past consideration
executed consideration
executory consideration
Which of the following are elements of mistake?
There must be a false representation or statement.
Both parties did the mistake intentionally.
The mistake relates to the quality of subject matter of the agreement.
The mistake must be made by both parties.
Consideration is NOT required in the following situations EXCEPT:
Pak Abu, for natural love and affection, made a written promise to give a piece of land to his son. Pak Abu registered the promise
Sheera found Mira's handphone and returned it to Mira. Mira promised to give Sheera RM 50.
Helen promises to sell her laptop to Nancy.
AN made a promise in writing to pay a statute-barred debt amounting to RM 1,000 to Babu.
Revocation of an offer can be made at
any time before the communication of the acceptance is complete as against the proposer, but not afterwards.
any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.
any time before the communication of the offer is complete as against the proposer, but not afterwards.
any time after the communication of the offer is completed as against the acceptor, but not afterwards.
Section 26(a) of the Contracts Act 1950 provides that an agreement made on account of natural and affection requires no consideration. Which of the following is
NOT a condition for this exception?
The agreement is made to compensate a promise
The agreement must be in writing
The agreement must be made on account of love and affection between parties standing in near relations
The agreement must be registered under the relevant law
Villa sent a letter to Daniella offering to sell her hand phone. On the same day, Daniella posted a letter offering to buy Villa's hand phone. Is there a contract between both of them?
No, because there was no consideration
Yes, because both have offered to sell and buy the book
Yes, because Villa and Daniella have the intention to create legal relations
No, because there was no acceptance between them
Richard placed an advertisement for the sale of his car, a Honda City, at RM 60,000. Ahmad travelled to Richard's house in order to buy the car. However, Richard refused to sell his car to Ahmad. Is there a contract?
Yes, an offer is made to the world at large through the advertisement
No, acceptance is revoked
No, Richard is not making an offer but merely invites the readers to respond to the advertisement.
Yes, Ahmad's conduct amount to an acceptance.
Sapphire came upon a bottle of hair shampoo placed on a rack in Alice Supermarket. As it was the only left, she took it. While walking to the payment counter she noticed that the seal was broken. So she put it back but a supervisor asked her to pay for it. Is she bound to pay?
Yes, because she had made an offer to buy
No, because Alice Supermarket had made an invitation to treat only
Yes, because Alice Supermarket had made an acceptance
No, because the seal was broken
Adele, 17 years old, agreed to accept a scholarship from a private body, Salvage Foundation. After a year, Adele decided to quit. Can the Foundation sue her for a breach of contract?
Yes, Adele has breached the contract
No, the Foundation has no capacity to sue
No, the contract was void because Adele was a minor then
Yes, Adele has become an adult now
The principle laid down in Venkata Chinnaya v Verikata Ma'ya is that
consideration must be sufficient but need not to be adequate
consideration can move from a third party
consideration must be in the form of money
consideration can be waived by the party
Romli asked his aunt Tina who is blind, to place her thumb print on a document. Tina asked the purpose for doing so and Romli informed her that it was loan application for her medical expenses. It was in fact an agreement to transfer Tina's properties to Romli without her knowledge. Advise Tina on the validity of the document.
Void, on the ground of undue influence.
Voidable, on the ground of fraud
Voidable, on the ground of misrepresentation
Void, on the ground of unsound mind
