WorksheetsBBA 5
Total questions: 15
Worksheet time: 8mins
What are the essential elements of a valid contract?
Promise, notification, agreement, intent
Terms, conditions, negotiation, enforcement
Offer, acceptance, consideration, mutual assent, capacity, legality.
Proposal, discussion, agreement, execution
Define 'capacity of parties' in contract law.
The legal ability of individuals or entities to enter into a binding contract.
The physical space required for executing a contract.
The maximum number of contracts a party can enter into.
The financial resources available to a party in a contract.
What is meant by 'free consent' in the context of contracts?
Free consent refers to the voluntary agreement of parties to enter into a contract without any external pressures or deceit.
Free consent is when one party benefits at the expense of the other.
Consent given under duress is considered free consent.
Free consent means agreeing to a contract without understanding its terms.
Explain the legality of object in a contract.
The object in a contract must be lawful; if illegal, the contract is void.
A contract is valid regardless of the legality of its object.
The object must be beneficial to one party only.
The object in a contract can be illegal if both parties agree.
What are the different ways a contract can be discharged?
Modification of terms
Performance, mutual agreement, breach, frustration, operation of law.
Termination by notice
Assignment of rights
What remedies are available for breach of contract?
Mediation fees
Punitive damages
Compensatory damages, specific performance, rescission, restitution
Injunctions
Define indemnity in the context of contract law.
Indemnity is a contractual obligation to compensate for losses or damages.
Indemnity means to provide legal representation in court.
Indemnity refers to a type of insurance policy.
Indemnity is a legal term for a contract breach.
What is a guarantee and how does it differ from indemnity?
A guarantee involves a legal contract, whereas indemnity is an informal promise.
A guarantee is a refund policy, while indemnity is a warranty for products.
A guarantee is a type of insurance, while indemnity is a loan agreement.
A guarantee is a promise to pay if another fails, while indemnity is compensation for losses.
What is the law of agency?
The law of agency governs the relationship between a principal and an agent, allowing the agent to act on behalf of the principal.
The law of agency prohibits agents from making decisions for the principal.
The law of agency is only applicable in real estate transactions.
The law of agency defines the duties of a principal only.
List the different types of agents in agency law.
Real Estate Agent
General Agent, Special Agent, Universal Agent, Sub-Agent, Del Credere Agent, Broker
Travel Agent
Insurance Agent
How is an agency created?
An agency is established through a government mandate.
An agency is formed when a principal acts without an agent.
An agency is created by a verbal agreement between a principal and an agent.
An agency is created by a formal agreement between a principal and an agent.
What is estoppel in relation to agency?
Estoppel prevents an agent from acting on behalf of the principal in any situation.
Estoppel in agency prevents a principal from denying an agent's authority when a third party relies on the principal's representations.
Estoppel in agency requires a third party to inform the principal of the agent's actions.
Estoppel allows an agent to act without the principal's consent.
What authority does an agent have?
An agent has express, implied, and apparent authority.
An agent has no authority at all.
An agent can only act with verbal permission.
An agent has unlimited authority in all matters.
Explain the concept of 'apparent authority' in agency.
Apparent authority is the actual authority an agent has based on a contract.
Apparent authority is the authority an agent appears to have to third parties, based on the principal's representations.
Apparent authority refers to the authority an agent has in the absence of a principal.
Apparent authority is the authority granted by a court to an agent.
What are the rights and duties of an agent?
An agent has no rights or duties in a contractual relationship.
The duties of an agent are to act independently and avoid communication with the principal.
The rights of an agent include ownership of the principal's assets.
The rights of an agent include compensation, indemnification, and access to information; the duties include loyalty, care, and accounting.
