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Free Consent

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

According to Section 13 Contract Act 1950, what constitutes consent in contract law?

a)

A party’s silent approval without agreement

b)

Two or more persons agreeing upon the same thing

c)

A promise supported only by consideration

d)

A unilateral declaration of intent

2.

According to Section 2(g) Contract Act 1950, which statement best defines a void agreement and its effect?

a)

An agreement enforceable only by the promisor; creates limited rights

b)

An agreement not enforceable by law; it has no legal effect ab initio and imposes no rights or obligations

c)

A valid agreement that becomes voidable at the option of one party

d)

An agreement enforceable after compensation under Section 66

3.

Which statement best defines a voidable contract?

a)

An agreement unenforceable by either party

b)

An agreement enforceable at the option of one or more parties but not at the option of the other(s)

c)

An agreement enforceable by all parties equally at all times

d)

An agreement that automatically terminates upon breach

4.

Under Section 15, which of the following best defines coercion in contract law?

a)

Committing or threatening to commit any act forbidden by the Penal Code, or unlawfully detaining or threatening to detain property, with the intention of causing a person to enter into an agreement

b)

Any agreement entered into without written documentation

c)

Any misrepresentation made during negotiations, regardless of intent

d)

Offering consideration that is inadequate but lawful

5.

According to Section 17, which statement best defines fraud in contract law?

a)

Any false statement made during negotiations, regardless of intent

b)

An intention to deceive the other party to induce them to enter into the contract

c)

A breach of any term of the contract after it is signed

d)

Silence about a fact, in all cases

6.

Badri agreed to sell his horse to Aban after Aban threatened to kill his daughter. Badri may later rescind the contract on the ground of

a)

misrepresentation

b)

undue influence

c)

coercion

d)

mistake

7.

Frankie was forced to enter into a contract to sell his car, "BMW X3" last week to Madau at a price of RM88,000. The original price of the car was RM 353,800. During the execution of the contract at Madau's office, Frankie was surrounded by several Madau's workers. These workers were physically big in size and spoke in a very rude manner. Some even carried parangs and threatened to harm him. Frankie is entitled to recover his car as a consequence of:

a)

misrepresentation

b)

mistake

c)

undue influence

d)

coercion

8.

False representation given by one party to another with the intention to deceive is an essential element to prove that there exist .....................

a)

undue influence

b)

fraud

c)

misrepresentation

d)

mistake

9.

which of the following will happen when a contract is declared void?

a)

The parties must rescind the contract

b)

The parties must modify the contents of the contract

c)

The parties must make a new contract to replcae the void contract

d)

The parties must restore the money or benefit received under the contract to the original owner

10.

Kennedy sold his factory to Sufri for RM5 million. Kennedy stated that his factory could produce 10,000 loafs of bread per day. Later Sufri discovered that the factory can only produce 9,000 loafs of bread per day. What is the legal position of the contract between Kennedy and Sufri?

a)

The contract is voidable under undue influence

b)

The contract is void under fraud

c)

The contract is void under mistake

d)

The contract is voidable under misrepresentation

11.

Which of the following best describe a contract made under undue influence?

a)

An old woman sells her bungalow worth RM 1.2 million to her nephew for RM 1 million

b)

A terminally ill person sells his brand new car to his nurse for RM5,000

c)

A 19 year old student borrows RM30,000 from a bank to pay for her university fees

d)

A illeterate man transfers a house to his 15 years old daughters

12.

A mistake of fact made by both parties to the agreement may occur in the following circumstances EXCEPT

a)

mistake as to the quantity of the subject matter of the contract

b)

mistake as to the identity of the subject matter

c)

mistake as to the existence of the subject matter

d)

mistake as to the possibility of the performing the contract

13.

Which of the following describes a contract made under coercion?

a)

Johari threaten to sue Asha for breach of contract after Asha failed to pay her debt to Johari

b)

Doris threatened to cancel her order to buy a car from Gopal if the car was not delivered on time.

c)

Jusoh threatened to burn Dahlia's shop if Dahlia does not agree to sell her apartment to Jusoh

d)

Ching threatened to report Gaga to police when the laptop Ching purchased from Gaga turned out to be a stolen good.

14.

Which of the following situations DOES NOT show a contract made under fraud?

a)

Naseem sold his motorcycle to Zaki without telling Zaki that the motorcycle's engine had been damaged in an accident

b)

Suzila wanted to sell a painting belonging to her grandfather that was worth RM10,000. She knowingly made Monica believed that the value of the painting is RM50,000. After buying the painting for RM50,000, Monica discovered that the actual value was only RM10,000

c)

Rita wishes to sell her house to Mr Kong. She placed a rug on the living room floor to prevent Mr Kong from seeing the holes on the floor.

d)

Along asked his grandmother to sign an agreement to transfer her house to him but told her that the document was an application form for aid by the government

15.

Rahul wants to sell his house to Ben for RM100,000. Rahul did not inform Ben that the area where the house is situated is prone to heavy flooding. Three weeks after Benedict purchased the house, a storm caused a major flood that submerged the lower story of the house and damaged most of the furniture there. Ben claimed that Rahul has cheated him by not disclosing the information about the flood. Has Rahul done anything wrong?

a)

Yes, rahul had led Ben to believe in something that is untrue

b)

Yes, Rahul must disclose all information about the house to Ben

c)

No, Rahul is not liable for the flood which is an Act of God

d)

No, Rahul is not required to disclose any information about the house to Ben as Ben did not make any enquiry before purchasing the house.