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Topic 2 - Elements of Contract

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A proposal by one party to another intended to create a legally binding agreement is a/an _____________

a)

acceptance

b)

agreement

c)

contract

d)

offer

2.

Any agreement enforceable by law is a/an_________

a)

acceptance

b)

legality

c)

contract

d)

offer

3.

What is a contract?

a)

An agreement between 2 parties

b)

An agreement between 2 or more parties which is enforceable by law

c)

An agreement which is unenforceable

d)

A written agreement between 2 parties

4.

A person making a proposal or an offer is known as:

a)

offeree

b)

offeror

c)

buyer

d)

seller

5.

What is the meaning of invitation to treat?

a)

An act of inviting people to pay for consideration

b)

An act of inviting people to make an offer

c)

An act of inviting people to make an acceptance

d)

An act of inviting people to make a donation

6.

What is revocation of an offer?

a)

Acceptance towards an offer

b)

Modification towards an offer

c)

Cancellation of an offer

d)

Alteration towards an offer

7.

What are the 7 elements of contract

a)

Offer, acceptance, consideration, intention to create legal relation, certainty, capacity and free consent.

b)

Offer, certainty, Acceptance, consideration, intention, capacity and consent.

c)

Offer, certainty, Acceptance, money, intention, capacity and consent.

d)

Offer, certainty, Acceptance, consideration, intention to create legal relation, capacity and consent.

8.

When an offer can be revoke?

a)

At any time before an acceptance is made

b)

After an acceptance is made

c)

After an offer is accepted

d)

After an offer is made

9.

A/An ________________ occurs when one party to a contract does not do what he or she agreed to do.

a)

breach

b)

fraud

c)

consideration

d)

ratification

10.

Consideration in a contract means that:

a)

A person has the mental capacity to enter into a contract.

b)

The two parties deal with the contract in a polite manner.

c)

The contract is legal and fully valid.

d)

Something of value is being exchanged by the two parties.

11.

A contract that amounts to nothing and has no legal effect is

a)

unenforceble

b)

voidable

c)

void

d)

unilateral

12.

Your friend has lost her bracelet and offers you a reward of RM50 if you find it. This is an example of a/an :

a)

bilateral contract

b)

acceptance contract

c)

unilateral contract

d)

revocation of contract

13.

This element refers to someone's mental ability to enter into an contract.

a)

consideration

b)

legality

c)

capacity

d)

genuine agreement

14.

What is the missing element from this contract?

Tommy says "I'm thinking about selling my bicycle." Bobby says "I'll take it, here's RM400 dollars."

a)

offer

b)

exchange of consideration

c)

written agreement

d)

acceptance

15.

What method of communication can not be used to constitute an acceptance?

a)

Silence

b)

Verbal

c)

Email

d)

WhatsApp

16.

What is a counter offer?

a)

A further offer made by the original offeror.

b)

Where a party seeks to change or vary terms of the original offer or seeks to introduce a new term(s).

c)

Where a party seeks to introduce a secondary or ancillary agreement to the original contract.

d)

A rejection and withdrawal of the original offer.

17.

What is the general rule of the postal acceptance rule?

a)

The offer will be accepted once the letter is received by the offeror.

b)

When the letter is posted by the offeree.

c)

When the seal of the letter is broken by the offeror.

d)

When the offeree gets notification from the Royal Mail or Courier that his letter has been received.

18.

A minor has the capacity to contract when ______

a)

For necessities like food, clothing, and shelter

b)

For contracts valuing over RM1 million.

c)

The new iPhone comes out in stores worldwide.

d)

The minor wishes to do so at his own time and convenience.

19.

Which of the following is a contract?

a)

Khabib offers to give a book to Conor. Conor accepts.

b)

Khabib offers to give Conor the book if Conor promises to pick it up at Khabib's house. Conor agrees.

c)

Khabib offers Conor the book in exchange for Conor’s promise to pay RM 29.00. Conor accepts.

d)

None of the above

20.

A contract to hire a hit man/gangster would be unenforceable because of what missing element?

a)

Consideration

b)

Capacity

c)

Legality

d)

Free Consent