Font size
WorksheetsBusiness Law
Total questions: 60
Worksheet time: 31mins
An oral contract is _______
Legal
Not enforceable
Not for money
Not legal
Offer, acceptance and consideration are all parts of a
Covers
Loans
Applications
Contract
An agreement between two parties that creates an obligation is a(n)
Contract
Tort
Offer
Purpose
When someone is authorized to act on behalf of another it governed by _______ law
Agency
Tort
Statutory
Administrative
A business run by one person is a(n)
Corporation
LLC
Sole proprietorship
Partnership
An _______ is one in which some of the terms are not expressed in words.
Oral contract
Verbal contract
Written contract
Implied contract
Courts can enforce
LLC
Partnership
Defense
Contracts
In order for a contract to be enforceable it must have
Acceptance
Consideration
Offers
Legal Purpose
_______ of an offer is agreement to the terms of the offer.
Competency
Consideration
Acceptance
Offer
A void contract
does not exist
is a crime
is a tort
is not legally binding
In case of the sale of a movable good the ownership is transferred in principle by
the conclusion of the contract
the handing over of the good
the full payment of the price
the full payment of the price and the handing over of the good
'He is a person for whom such act is done, or who is so represented in dealing with a third party.'
‘He’ refers to _____
Principal
Agent
Boss
3rd party
The agreement created between principal and agent is _____
Contract of employment
contract of service
contract of agency
contract of necessity
'A person, by his words/conducts, allows a 3rd party to believe that B is his agent even when B is not, and the 3rd party relies on it to his detriment, that person will be estopped/precluded from denying the existence of B’s authority.'
A is agent by ______________
necessity
ratification
holding out
estoppel
_____________ is an authority conferred expressly upon the agent either by oral or written agreement.
express authority
apparent authority
secret authority
special authority
In the agency by ratification, if the principal does not ratify the contract made by the agent, the effect of the contract is _____
The principal will not be responsible for the contract
The agent will not be responsible for the contract
The agent will be responsible for the contract
The principal will be responsible for the contract
In which of the following circumstances, an agency by necessity may be created?
when an agent signed an estoppel agreement
when a person who is with authority act as an agent
when an agent breaches the agreement with the principal
when it is impossible for the agent to get the principal’s instruction
To whom the agent is responsible?
Principal
Sub Agent
Contractor
None of these
Contracts are made between the principal and the third party or directly with the agent.
True
False
_________ arises where P implies that A is his agent even though that is not. He is then prevented or "stopped" from denying A's authority.
Ratification
Estoppel
Necessity
Agreement
To become an agent by necessity requires __________ condition to be satisfied.
A's property is entrusted to P
it's not possible to communicate with A
An emergency arises making it necessary for A to act
An agency relationship can be established in some ways....
by ratification, express necessity, by necessity, enforced agreement
implied necessity, enforced agreement, implied agreement
by estoppel, implied necessity, express necessity
by ratification, implied agreement, by estoppel, by necessity
The agreement created between principal and agent is
Contract of employment
Contract of service
Contract of sale and purchase
Contract of agency
'A person, by his words/conducts, allows a 3rd party to believe that B is his agent even when B is not, and the 3rd party relies on it to his detriment, that person will be estopped/precluded from denying the existence of B’s authority.'
A is agent by way of
necessity
ratification
implied appointment
estoppel
In the agency by ratification, if the principal does not ratify the contract made by the agent, the effect of the contract is _____
The agent will be responsible for the contract
The principal will not be responsible for the contract
The agent will not be responsible for the contract
The principal will be responsible for the contract
A void or illegal contract may still be ratified.
True
False
The word " Deductible " means ....
Sum of money paid when there was no obligation or liability to pay it
The amount of loss which the insured has to bear himself
A lump sum consideration received by a life insurance company in accordance with an insurance contract.
Death, injury, destruction, or damage in such a manner as to charge the insurer with a liability under the terms of a policy
The word "Principle of indemnity " refers to
Obligation of one party to reimburse another party for losses which have occurred or which may occur
The insured is indemnified only to the extent of his actual loss as determined by the real value of the insured risk. This principle leads to the rules on over-insurance, multiple insurance and subrogation
Insurance business where claims are likely to be settled quickly
The consideration payable for the purchase of insurance protection
"Claims" refers to
Sum of money paid when there was no obligation or liability to pay it
Death, injury, destruction, or damage in such a manner as to charge the insurer with a liability under the terms of a policy
Obligation of one party to reimburse another party for losses which have occurred or which may occur
The amount of loss which the insured has to bear himself
A written or oral agreement between 2 parties.
Memo
Invoice
Contract
Requisition
What is the first element of a contract?
Consideration
Acceptance
Capacity
Offer
An order form or receipt is an example of this type of contract.
Written
Oral
Implied
Express
A written contract in which the subject is clearly stated and all details are included. Most enforceable type of contract by law.
Oral
Implies
Express
Analytical
A verbal agreement made out loud during conversation. Most difficult type of contract to enforce.
Oral
Implied
Express
Analytical
In this type of contract, the details are assumed.
Oral
Written
Implied
Express
When one or both parties fail to perform their duties in the contract.
Implied
Breach
Implied
Requisition
Fraud, Coercion and Misrepresentation are three claims that can be used to void contracts based on the lack of free _______________.
Implied
Unilateral
Consent
Consideration
Committing an act of violence to obtain a signature on a written contract is coercion.
True
False
An agreement which is enforceable by law at the option of one or more of the parties
Voidable contract
Void contract
Valid contract
No contract
Which type of contract is classified as, when the consent of the party was caused by coercion?
Voidable
Void
Valid
Illegal
What elements would NOT cause grounds for avoidance due to lack of consent?
Coercion
Undue Influence
Misrepresentation
Promises
Fraud
A contract is said to be induced by ______________ where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other
undue influence
mistake
fraud
misrepresentation
The contracting parties in sale of goods known as
offeror and offeree
agent and principle
seller and buyer
Who is buyer?
a person who buys or agrees to buy goods.
a person who is still negotiating
a person who offers to sell goods
a person who is disagree to buy goods
With a contract of sale, when will the property in the goods be transferred from the seller to the buyer?
As soon as the goods have been paid for
As soon as the goods have been delivered
As soon as the contract is made
As soon as possible
Goods are of two types. Namely
Existing Good; owned or possessed by seller
private goods
future goods
public goods
What is meant by the term "specific goods"?
Specific goods are goods that are identified and agreed upon at the time a contract of sale is made.
Specific goods are goods that have been specifically made to fulfil the buyer's order
Specific goods are goods that have a specific (rather than a general) use
Specific goods are goods that the seller has had to order specifically for the buyer
What are "existing goods"?
Existing goods are goods that the seller has left over from a previous sale.
Existing goods are goods that are either owned or possessed by the seller.
Existing goods are goods that the seller knows exist but needs to order them specifically for the buyer.
Existing goods are goods that have already been manufactured and therefore exist.
