Question 1

A deed is not valid unless it is a document which:

Accepted Answer

A) is executed by a natural person or an officer of the court. 
B) is signed before a Justice of the Peace. 
C) is signed,sealed,delivered and witnessed. 
D) satisfies all of the above requirements. 
A) is executed by a natural person or an officer of the court. 
B) is signed before a Justice of the Peace. 
C) is signed,sealed,delivered and witnessed. 
D) satisfies all of the above requirements. C

Question 2

Which of the following elements are required to create an 'apparent' simple contract?

Accepted Answer

A) intention,agreement and consideration. 
B) intention,agreement and capacity. 
C) capacity,legality and intention. 
D) intention,consideration and genuine consent. 
E) agreement,genuine consent and capacity. 
A) intention,agreement and consideration. 
B) intention,agreement and capacity. 
C) capacity,legality and intention. 
D) intention,consideration and genuine consent. 
E) agreement,genuine consent and capacity. A

Question 3

Which of the following statements about simple contracts is correct?

Accepted Answer

A) They must be written. 
B) They can take any form and do not require consideration. 
C) They can take any form and must include consideration. 
D) They have a maximum duration of 12 years. 
A) They must be written. 
B) They can take any form and do not require consideration. 
C) They can take any form and must include consideration. 
D) They have a maximum duration of 12 years. C

Question 4

A contract is an agreement that:

Accepted Answer

A) creates moral and social obligations that are legally enforceable. 
B) creates rights and obligations that are legally enforceable. 
C) must be proven by some form of written evidence. 
D) can be enforced in a court if the parties have entered into a pre- enforcement covenant. 
A) creates moral and social obligations that are legally enforceable. 
B) creates rights and obligations that are legally enforceable. 
C) must be proven by some form of written evidence. 
D) can be enforced in a court if the parties have entered into a pre- enforcement covenant.

Question 5

Which of the following contracts are not required by statute to be entirely or partly in writing?

Accepted Answer

A) An agreement to transfer ownership of shares. 
B) The sale of land. 
C) An insurance contract. 
D) The sale of a boat. 
E) A and B only. 
A) An agreement to transfer ownership of shares. 
B) The sale of land. 
C) An insurance contract. 
D) The sale of a boat. 
E) A and B only.

Question 6

A valid contract is usually defined as an agreement made by two or more parties which creates:

Accepted Answer

A) rights and obligations that are legally enforceable. 
B) rights and obligations that are legally binding if the agreement is put into writing. 
C) debts and credit obligations that are legally enforceable. 
D) legally binding promises approved by the court of equity or the common law. 
A) rights and obligations that are legally enforceable. 
B) rights and obligations that are legally binding if the agreement is put into writing. 
C) debts and credit obligations that are legally enforceable. 
D) legally binding promises approved by the court of equity or the common law.

Question 7

Which of the following statements is not true in relation to standard form contracts?

Accepted Answer

A) Consumers are given special statutory protection against unfair terms in internet standard form contracts. 
B) Standard form contracts are printed or electronic agreements that do not allow us to negate any of its terms 
C) When consumers sign or otherwise accept a standard form agreement they are usually legally bound by all its terms 
D) Consumers are given statutory protection against unfair terms in standard form contracts. 
A) Consumers are given special statutory protection against unfair terms in internet standard form contracts. 
B) Standard form contracts are printed or electronic agreements that do not allow us to negate any of its terms 
C) When consumers sign or otherwise accept a standard form agreement they are usually legally bound by all its terms 
D) Consumers are given statutory protection against unfair terms in standard form contracts.

Question 8

John sells an iPhone to Betty.The contract is voidable because of a breach by Betty.But Betty sold the iPhone to Gerard before John advised her he would no longer be bound to the contract.Who probably has the strongest legal right to the iPhone?

Accepted Answer

A) No- one.The iPhone must be sold and the proceeds divided equally between John and Gerard,with Betty being responsible for making up the balance to both of them. 
B) Gerard. 
C) Betty. 
D) John. 
A) No- one.The iPhone must be sold and the proceeds divided equally between John and Gerard,with Betty being responsible for making up the balance to both of them. 
B) Gerard. 
C) Betty. 
D) John.

Question 9

In Victoria and South Australia parties have the right to commence legal action for a breach of contract within:

Accepted Answer

A) 2 years for a simple contract and 6 years for a formal contract. 
B) 10 years for a simple contract and 15 years for a simple contract. 
C) 12 years for a simple contract and 6 years for a formal contract. 
D) 6 years for a simple contract and 15 years for a formal contract. 
A) 2 years for a simple contract and 6 years for a formal contract. 
B) 10 years for a simple contract and 15 years for a simple contract. 
C) 12 years for a simple contract and 6 years for a formal contract. 
D) 6 years for a simple contract and 15 years for a formal contract.

Question 10

A has the right to a________ contract if A did not give genuine consent to the contract.

Accepted Answer

A) execute. 
B) repudiate. 
C) enforce. 
D) frustrate. 
A) execute. 
B) repudiate. 
C) enforce. 
D) frustrate.

Question 11

Consideration must exist in:

Accepted Answer

A) simple contracts. 
B) domestic arrangements. 
C) deeds. 
D) all of the above. 
A) simple contracts. 
B) domestic arrangements. 
C) deeds. 
D) all of the above.

Question 12

Which of the following statements about simple contracts is correct?

Accepted Answer

A) They have a maximum duration of 12 years. 
B) They can take any form and must include consideration. 
C) They can take any form and do not require consideration. 
D) They must be written. 
A) They have a maximum duration of 12 years. 
B) They can take any form and must include consideration. 
C) They can take any form and do not require consideration. 
D) They must be written.

Question 13

Which of the following statements is/are true in relation to an express contract?

Accepted Answer

A) It occurs when parties clearly agree on the terms of the contract'. 
B) It can be achieved through documents or the spoken word or a combination of both. 
C) It refers to an agreement that is made quickly and effectively. 
D) All of the above. 
E) A and b only 
A) It occurs when parties clearly agree on the terms of the contract'. 
B) It can be achieved through documents or the spoken word or a combination of both. 
C) It refers to an agreement that is made quickly and effectively. 
D) All of the above. 
E) A and b only

Question 14

An executed contract is one where:

Accepted Answer

A) one or both parties could face prison sentences for a breach of the contract. 
B) both parties have performed their contractual obligations. 
C) one party is responsible for completing the necessary documentation. 
D) both parties sign,seal and deliver the written documents. 
A) one or both parties could face prison sentences for a breach of the contract. 
B) both parties have performed their contractual obligations. 
C) one party is responsible for completing the necessary documentation. 
D) both parties sign,seal and deliver the written documents.

Question 15

A simple contract may be implied by:

Accepted Answer

A) a contract of record. 
B) the conduct of the parties. 
C) a deed. 
D) a 'signed,sealed and delivered' agreement. 
A) a contract of record. 
B) the conduct of the parties. 
C) a deed. 
D) a 'signed,sealed and delivered' agreement.

Question 16

A contract where one or both parties have not yet performed their contractual obligations is known as:

Accepted Answer

A) an executed contract. 
B) an executory contract. 
C) a voidable contract. 
D) a quasi contract. 
A) an executed contract. 
B) an executory contract. 
C) a voidable contract. 
D) a quasi contract.

Question 17

If a contract is void ab initio it has:

Accepted Answer

A) no legal effect from the date a court rules it is void 
B) no legal effect from the very beginning. 
C) no legal effect once the guilty party terminates the contract. 
D) no legal effect once there is a failure by one party to perform the contract. 
A) no legal effect from the date a court rules it is void 
B) no legal effect from the very beginning. 
C) no legal effect once the guilty party terminates the contract. 
D) no legal effect once there is a failure by one party to perform the contract.

Question 18

Two types of contracts that are not enforceable unless they are in the form of a deed are:

Accepted Answer

A) a power of attorney (to appoint an agent)and a gratuitous contract (one with no consideration from one party). 
B) a power of attorney (to appoint an agent)and a contract for the sale of land. 
C) a contract for the transfer of shares and an insurance contract. 
D) a contract for the transfer of copyright and a consumer credit contract. 
A) a power of attorney (to appoint an agent)and a gratuitous contract (one with no consideration from one party). 
B) a power of attorney (to appoint an agent)and a contract for the sale of land. 
C) a contract for the transfer of shares and an insurance contract. 
D) a contract for the transfer of copyright and a consumer credit contract.

Question 19

Which of the following is not required in a valid simple contract?

Accepted Answer

A) Offer and acceptance. 
B) A signed document. 
C) Consideration. 
D) An intention to create legal relations. 
E) A and B only. 
A) Offer and acceptance. 
B) A signed document. 
C) Consideration. 
D) An intention to create legal relations. 
E) A and B only.

Question 20

The formation of a contract between parties may be:

Accepted Answer

A) quasi. 
B) implied. 
C) express. 
D) all of the above. 
A) quasi. 
B) implied. 
C) express. 
D) all of the above.

Exam 8: Introduction to Contracts

A deed is not valid unless it is a document which:

Which of the following elements are required to create an 'apparent' simple contract?

Which of the following statements about simple contracts is correct?

A contract is an agreement that:

Which of the following contracts are not required by statute to be entirely or partly in writing?

A valid contract is usually defined as an agreement made by two or more parties which creates:

Which of the following statements is not true in relation to standard form contracts?

John sells an iPhone to Betty.The contract is voidable because of a breach by Betty.But Betty sold the iPhone to Gerard before John advised her he would no longer be bound to the contract.Who probably has the strongest legal right to the iPhone?

In Victoria and South Australia parties have the right to commence legal action for a breach of contract within:

A has the right to a________ contract if A did not give genuine consent to the contract.

Consideration must exist in:

Which of the following statements about simple contracts is correct?

Which of the following statements is/are true in relation to an express contract?

An executed contract is one where:

A simple contract may be implied by:

A contract where one or both parties have not yet performed their contractual obligations is known as:

If a contract is void ab initio it has:

Two types of contracts that are not enforceable unless they are in the form of a deed are:

Which of the following is not required in a valid simple contract?

The formation of a contract between parties may be:

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