Deck 7: Contract Law 1: Formation of the Contract

Question 1

At an auction, a call for bids is usually:

A)An offer to sell the item up for auction.
B)An invitation to treat.
C)A conditional agreement where the condition precedent is that the offeree must win the bid.
D)Acceptance of the bidders' offers.

Answer 1

B

Question 2

Which of the following is one of the requirements necessary to establish promissory estoppel?

A)The promisor makes a vague promise to waive some contractual obligations.
B)The promisee disregards the promise.
C)It would be unconscionable (unfair) for the promisor to break the promise.
D)The promise is in writing.

Answer 2

C

Question 3

If X makes an offer to Y, which of the following is not an effective means of communicating acceptance?

A)Y sends her acceptance by registered post.
B)Y sends her acceptance by fax.
C)Y sends her acceptance by SMS.
D)Y tells X's neighbour of her intention to accept the offer.

Answer 3

D

Question 4

Xavier is a landlord and Logan his tenant.Xavier wants to renovate the house that Logan lives in and gives Logan three months' notice to leave in accordance with the terms of the lease.Logan requests more time to find new accommodation, and Xavier agrees to give him four months.Logan finds new accommodation but he has arranged it such that he will move into the new place only at the expiration of the four months.Three months after giving notice, Xavier tries to evict Logan.Can he do so?

A)No.Promissory estoppel prevents Xavier from going back on a promise that Logan has relied on.
B)Yes.Logan gave no consideration for the promise of an extra month.
C)Yes.Xavier was following the terms of the contract.
D)No.Xavier is in breach of the contract.

Question 5

Johnny offers to sell his car to Kyle for $70,000 and says that the offer is open for 5 days.Three days later Johnny tells Kyle that he has sold the car to Manny for $80,000.Which of the following is an option available to Kyle?

A)Kyle can sue Johnny for breach of contract.
B)Kyle cannot do anything because Johnny was entitled to revoke his offer.
C)Kyle can sue Manny and recover the car.
D)Kyle can claim the $10,000 from Johnny.

Question 6

X and Y live in the same suburb.X offers to sell Y his luxury yacht and tells Y to respond by post.Y posts a letter accepting the offer.The following evening Y changes her mind and calls X and leaves a message on X's voicemail saying that the offer is not accepted.Which of the following is correct?

A)A contract was formed when Y sent the letter and prior to Y's phone call as that was when Y's acceptance will be deemed to have been communicated according to the postal rule.
B)There is no contract because Y effectively communicated her rejection of the offer.
C)There is no contract because offers cannot be accepted by post.
D)A contract was formed as soon as X received Y's voicemail message.

Question 7

When the offeror insists that the offeree accept the offer by telephone, the offeree:

A)Can accept the offer in any way.
B)Can accept the offer by telephone or by any other means of instantaneous communication.
C)Must accept the offer by telephone.
D)Can accept by post according to the postal rule.

Question 8

X offers to sell his boat to Y.X kindly promises to keep the offer open for one week to give Y time to think about it.Which of the following is not correct?

A)X can sell the boat to Z before the week is over.
B)Y can accept the offer at any time during the week.
C)X can revoke the offer and keep the boat.
D)If X sells the boat to Z before the week is over the contract between X and Z will be void.

Question 9

When a product is bought from the supermarket, the contract is usually formed:

A)When the customer lifts the product off the shelf and puts the product into the basket.
B)When the customer holds onto the product for more than twenty minutes preventing other customers from buying that product.
C)When the customer takes the product to the cashier and offers payment.
D)When the cashier accepts payment for the product.

Question 10

Which of the following is not one of the benefits of having a contract in writing?

A)It provides reliable evidence of the terms of the contract.
B)It proves that the contract was negotiated fairly.
C)It makes the parties take the contract seriously.
D)It proves the existence of the contract.

Question 11

Which of the following types of contract is not enforceable against minors?

A)A contract for necessities.
B)A beneficial contract for services.
C)A contract where the minor acquires a continuing interest or undertakes a continuing obligation.
D)A contract for the purchase of a luxury motor vehicle.

Question 12

X is a homeowner who is renovating his house and needs it to be completed in two weeks.Y is the contractor who has promised to finish the job in the stipulated two weeks.Four days from the expected time of completion, Y says that she cannot finish the job on time.X offers to pay Y more money to have the house completed on time.Y completes the job on time but X refuses to pay the extra money that he promised.Has Y provided consideration for X's promise to pay more money?

A)Yes.Y has finished the job on time.
B)Yes.Y has accepted X's offer.
C)No.Y has done no more than fulfil an existing legal obligation.
D)No.Y has not paid X any money.

Question 13

John owes Jill $2000.John informs Jill that he is unable to pay the debt.Jill agrees to accept $1500 and to waive the rest of the debt.Which of the following will not prevent Jill from enforcing payment of the balance of the debt?

A)At Jill's request John pays the equivalent of $1500 in US currency even though he originally agreed to repay the $2000 in Australian dollars.
B)At Jill's request John accompanies the payment of $1500 with the performance of a service.
C)John pays the $1000 earlier than the agreed date for repayment.
D)John's financial status worsens and he is evicted from his rental property.

Question 14

X promises to transfer his car worth $10,000 to Y.Which of the following would be considered sufficient consideration for X's promise?

A)A promise by Y to be nice to X for a year.
B)Y having mowed X's lawn the week before.
C)A promise by Y to pay X $50.
D)A promise by Y never to exceed the speed limit in the car.

Question 15

Which of the following is the best example of a transaction that will be presumed to have the requisite intention to be legally enforceable?

A)A father's promise to pay for his son's first car.
B)A doctor's promises to visit her sick sister for a check-up.
C)A business proprietor's promise to provide around-the-clock maintenance service for their products.
D)A university student's promise to meet her friends at the pizza shop.

Question 16

Tim agrees to sell JJ his skateboard for $200 provided that JJ pays the $200 within the next 3 days.JJ shows up 4 days later with $200 demanding the skateboard but Tim refuses to sell JJ the skateboard.What can JJ do?

A)Enforce the contract because he is only one day late.
B)Enforce the contract because Tim is estopped from refusing to sell the skateboard.
C)Nothing, because the contract is unenforceable due to JJ's failure to accept in the required manner.
D)Nothing because the contract is not in writing.

Question 17

JJ offers to sell his yacht to Tom for $250,000.Tom sends JJ an email asking if he would prefer payment in instalments or in one lump sum.Which of the following is true?

A)Tom has accepted JJ's offer.
B)Tom has rejected JJ's offer.
C)Tom has made a request for further information.
D)Tom has made an invitation to treat.

Question 18

For the purposes of contract law, a minor is a person:

A)Under the age of 18 years.
B)Under the age of 16 years.
C)Under the age of 21 years.
D)Who still lives with their parents.

Question 19

Which of the following is not valid consideration?

A)The payment of money.
B)The provision of goods.
C)Undertaking an onerous obligation.
D)A promise not to carry out a crime.

Question 20

Max owns a Van Gogh painting.Nigel wants to know if he will sell it and sends Max an email asking for the price of the painting.Max immediately responds by saying that Nigel can have the painting for $4 million and that the painting will be shipped to Nigel's residence in 4 days.Which of the following is true?

A)Max has accepted Nigel's offer.
B)There is no contract.Nigel was merely requesting information.
C)Nigel has accepted Max's offer.
D)Max and Nigel have entered into a binding contract.

Question 21

Henry attends his local supermarket with the intention of purchasing a kilogram of ripe mangoes.The contract between Henry and the supermarket proprietor is formed when:

A)Henry selects the mangoes of his choice and places them in his shopping basket.
B)Henry presents the bag of mangoes to the checkout operator.
C)The checkout operator accepts payment from Henry.
D)Henry eats the mangoes.

Question 22

Which of the following is an example of a lack of intellectual capacity?

A)Intoxication.
B)Immaturity.
C)Laziness.
D)Duress.

Question 23

Which of the following scenarios will amount to the making of an offer?

A)Jasper telephones Rupert and asks whether he would sell his barbecue for $500.
B)Mimi emails Rose and inquires whether she has any Dalmatian puppies for sale.
C)James places a sign on his fruit stall stating that he will sell his remaining watermelons to the first 10 customers for $1 each.
D)Aubrey places an advertisement in the local newspaper for sale of his skateboard for $50 or the nearest offer.

Question 24

An offeror is entitled to revoke their offer even where they have promised to keep the offer open for a specified period.An important exception to this rule is where:

A)The offeree will suffer loss if the offer is revoked.
B)The offeree has provided consideration for the offeror's promise to keep the offer open.
C)No other person has expressed an interest in accepting the offer.
D)The offeree has changed their position in reliance on the offeror's promise.

Question 25

Caroline agrees to sell her Steinway baby grand piano to Gracie.The contract between Caroline and Gracie is performed on Gracie's part when:

A)Gracie agrees to buy Caroline's piano for $3000.
B)Gracie provides Caroline with her credit card details over the phone.
C)Caroline delivers the baby grand piano to Gracie's apartment.
D)The funds are transferred to Caroline's account.

Question 26

At law, a 'minor' is:

A)A person who works underground excavating mineral ore deposits.
B)A person under the age of 21 years.
C)A person under the age of 18 years.
D)A person who plays only a limited role, as opposed to a major.

Question 27

A 'comfort letter' is:

A)A letter from the executor of an estate to the deceased person's beneficiaries advising as to the distribution of the estate.
B)A letter from a solicitor to their clients advising the clients as to their rights and remedies under the law.
C)A letter from a third party assuring a lender about the borrower's ability to repay a loan.
D)A letter from an offeree confirming acceptance of an offer.

Question 28

In which of the following circumstances will a debtor have failed to provide sufficient consideration for a creditor's promise to waive the balance of a debt?

A)The debtor makes the part payment earlier than the originally agreed due date.
B)The debtor spends the balance of his money in reliance on the creditor's promise.
C)The debtor makes the part payment in a different currency.
D)The part payment is made by a third party rather than by the debtor.

Question 29

Which of the following is not an example of insufficient consideration for performance of a contract?

A)A vague promise to do something or refrain from doing something.
B)A price paid before the making of a promise: that is past consideration.
C)A sum of money that represents less than the reasonable market value of the goods or services.
D)A promise to do something that the promisor is already legally obliged to do.

Question 30

Which of the following is not a type of contract generally recognised as enforceable against a minor?

A)A contract for necessities.
B)A contract for goods or services of the type suitable for a person under the age of 18 years.
C)A beneficial contract of service.
D)A contract where the minor acquires a continuing interest or undertakes a continuing obligation.

Question 31

Which of the following is most likely to be a person lacking in legal capacity?

A)An elderly person.
B)An intellectually impaired person.
C)A corporation.
D)A person with no academic or trade qualifications.

Question 32

According to the doctrine of promissory estoppel:

A)A promise will be legally enforceable, even if the promisee has not provided consideration, as long as certain requirements are satisfied.
B)A promise will be enforceable, even where there is no consideration and the promisor did not intend the promisee to rely upon the promise.
C)A promise will not be legally enforceable solely because it would be unconscionable to require the promisor to keep their promise.
D)All promises made in a business context will be enforceable even where there is no consideration.

Question 33

If parties to a contract agree that it will not be legally enforceable until the happening of a certain event, that term of the contract is known as a:

A)Condition precedent.
B)Condition subsequent.
C)Qualified term.
D)Prior term.

Question 34

If an offer is not accepted, rejected or revoked it will lapse:

A)After a reasonable amount of time has elapsed.
B)After a period of 30 days.
C)When the offeror has communicated to the offeree that the offer has lapsed.
D)Never.The offer will remain open until it is accepted, rejected or revoked.

Question 35

Miranda offers to sell her motorcycle to Cassandra and states 'reply by email'.The offer will be effectively accepted if:

A)Cassandra immediately telephones Miranda and accepts the offer.
B)Cassandra writes a letter to Miranda and posts it the following day indicating her acceptance.
C)Cassandra leaves a note at Miranda's door the following Tuesday indicating her acceptance.
D)Miranda hears nothing from Cassandra and assumes that Cassandra's silence indicates her acceptance of the terms.

Question 36

In a legal context, 'consideration' is:

A)The price paid or promise made by each of the parties to a contract.
B)The terms of agreement between the parties.
C)The agreement of the parties to be legally bound.
D)The subject matter of a contract.

Question 37

Complete the following: Agreement + (1) + Consideration = Contract,
Where Agreement = (2) + (3).

A)(1) = intention, (2) = advertisement, (3) = payment.
B)(1) = payment, (2) = intention, (3) = promise.
C)(1) = intention, (2) = offer, (3) = acceptance.
D)(1) = payment, (2) = offer, (3) = acceptance.

Question 38

Caroline agrees to sell her Steinway baby grand piano to Gracie on credit.The contract between Caroline and Gracie is performed on Caroline's part when:

A)Gracie agrees to buy Caroline's piano for $3000.
B)Gracie provides Caroline with her credit card details over the phone.
C)Caroline delivers the baby grand piano to Gracie's apartment.
D)The funds are transferred to Caroline's account by Gracie's credit provider.

Question 39

Which of the following is not an invitation to treat?

A)A call for bids by an auctioneer.
B)An advertisement calling for tenders.
C)The listing of an item for sale in a supermarket catalogue.
D)The presentation of canned soft drinks in a vending machine in the foyer of an office building.

Question 40

Which of the following statements is not true of consideration for performance of a contract?

A)Consideration can be an agreement to refrain from doing something.
B)Consideration can be the undertaking of an onerous obligation.
C)Consideration must move from the promisee but not necessarily to the promisor.
D)Consideration must represent a fair or adequate price for the subject matter of the contract.

Question 41

Which of the following statements is not true concerning consideration?

A)Consideration need not be adequate.
B)Consideration must be sufficient.
C)A promise may still be enforceable in the absence of consideration if the requirements of promissory estoppel are satisfied.
D)The price paid for a promise must be a fair price.

Question 42

Percy owes Casper $10,000.Pursuant to their agreement Percy must pay Casper the entire sum on 31 October 2011.Which of the following statements is not true concerning the arrangement?

A)If Casper agrees that Percy can discharge the debt by paying $5,000 on 30 September 2011 and Percy does so, Casper cannot subsequently insist that Percy pays the entire sum.
B)If Casper agrees that Percy can discharge the debt by paying $5,000 in US currency and Percy does so, Casper cannot subsequently insist that Percy pays the balance of the debt.
C)If Casper agrees that Percy can discharge the debt by paying $1,000 and washing Casper's car for 6 months and Percy does so, Casper cannot subsequently insist that Percy pays the whole of the debt.
D)If Casper feels sorry for Percy and tells him in a telephone conversation that he need only pay half the debt Casper cannot subsequently change his mind and insist on payment of the entire sum.

Question 43

Which of the following would not generally be considered to be a benefit of evidencing a contract in writing and having it signed by the parties?

A)To encourage deliberation and reflection and to emphasise that the transaction has significant legal consequences.
B)To ensure the availability of reliable evidence about the terms of and existence of the contract.
C)To encourage the use of formal legal language in order to preserve the sanctity of the law.
D)To indicate that the agreement was intended to be legally enforceable.

Question 44

The presumption that an agreement made in a social or domestic context was not intended to be legally enforceable can be rebutted by:

A)Severing the friendship with the other party to the agreement
B)Issuing legal proceedings against the other party to the agreement
C)Proving that the other party to the agreement is unreliable and not trustworthy.
D)Proving to the court that the parties intended it to be a legally enforceable agreement.

Question 45

A 'contract' is:

A)Any agreement between two or more persons.
B)A legally enforceable agreement between two or more persons.
C)An agreement where the parties intend their agreement to be legally enforceable.
D)An agreement where the parties provide consideration.

Question 46

Which of the following is not valid consideration?

A)The payment of money.
B)The provision of goods.
C)Undertaking an onerous obligation.
D)A vague promise.

Question 47

Humphrey agrees to sell his laptop to Jemima.In which of the following situations will Humphrey not be legally obliged to keep his promise?

A)Jemima agrees to pay Humphrey $100 although the laptop is worth $1000.
B)Jemima agrees to pay Humphrey by giving him her games console.
C)Jemima agrees to pay Humphrey by cleaning Humphrey's house for a month.
D)Jemima agrees to pay Humphrey by being nice to Humphrey for the rest of the year.

Question 48

Which of the following statements is not true of a deed?

A)A deed is a formal written contract.
B)A deed is signed by the parties before a witness and expressed to be sealed and delivered.
C)A deed is a formal written contract expressed to be a deed.
D)When enforcing a deed it is necessary to show that the promisee provided consideration for the promise.

Question 49

Which of the following is not a requirement for the formation of an agreement?

A)One person (the offeror) has made an offer.
B)Another person (the offeree) has accepted the offer.
C)The offeree has communicated their acceptance to the offeror.
D)The parties have discussed and agreed every aspect of the arrangement.

Question 50

Various legislation requires certain contracts to be in writing and signed in order to be effective and enforceable.Which of the following type of contract will be effective and enforceable even where it is not in writing and signed?

A)An arbitration agreement.
B)A bill of exchange.
C)A consumer credit contract.
D)A contract for the sale of goods.

Question 51

Which of the following is most likely to lack contractual capacity?

A)An intoxicated person.
B)An old person.
C)A forgetful person.
D)An uneducated person.

Question 52

Which of the following is not a type of contract categorised at common law as illegal and unenforceable?

A)A contract to commit a crime or a tort.
B)A contract designed to evade the payment of tax.
C)A contract to expose corruption in public office.
D)A contract to prevent or delay the administration of justice.

Question 53

Which of the following will be adequate consideration for the sale of a laptop?

A)A vague promise.
B)Past consideration.
C)Completion of a prior legal obligation.
D)Ten cents.

Question 54

Cleo offers to sell her Jack Russell terrier puppy to Bridie for $500 and agrees to keep the offer open until the following Tuesday.The next day she sells the puppy to Tess for $600.In which of the following circumstances will Cleo's actions amount to a breach of contract?

A)Bridie's housemate witnessed Cleo's offer to Bridie and recorded the conversation.
B)Cleo wrote down the promise on a post-it note and gave it to Bridie.
C)Bridie is a close personal friend of Cleo and she lost the opportunity to purchase a puppy from another breeder because she relied on Cleo's promise.
D)Bridie paid Cleo $50 in return for her agreement to keep the offer open.

Question 55

A contract for the sale of goods that are not necessities will be enforceable where entered into with a person of impaired intellectual capacity unless:

A)The impaired person understood the nature of the agreement and the other party did not know about the impaired person's lack of capacity.
B)The other party knew about the impaired person's lack of capacity and the impaired person was not capable of understanding the nature of the agreement being entered into.
C)The impaired person was incapable of understanding the nature of the agreement even though the other party did not know about the impaired person's lack of capacity.
D)The contract was for luxury goods.

Question 56

Which of the following statements is not generally true of an auction?

A)The call for bids is an invitation to treat.
B)The bidders are offerors.
C)There is no contract until the auctioneer accepts an offer on behalf of the seller.
D)If there is no reserve and the auctioneer refuses to sell to the highest bidder the vendor can be sued for specific performance of the contract.

Question 57

An order for specific performance of a contract is an order:

A)Directing a party to fulfil their contractual obligations.
B)Compensating the party disadvantaged by the broken promise for the loss and damage suffered as a result of relying upon the promise.
C)Enforcing the terms of a contract even where a promisee has not provided consideration for the promise.
D)Making specific directions concerning an award of damages.

Question 58

The presumption relating to social or domestic agreements is that:

A)Agreements made in a social or domestic context are intended to be legally enforceable.
B)Agreements made in a social or domestic context are not intended to be legally enforceable.
C)Friends and relatives cannot make contracts with each other.
D)A court will presume that an agreement made in a social setting was intended to be a binding contract.

Question 59

Consideration for a promise will be sufficient to establish a binding agreement where:

A)The price paid by the promisee is a vague promise to do something or refrain from doing something.
B)The price paid for the promise was paid before the promise was made.
C)The price paid by the promisee was the fulfilment of a prior legal obligation, that is, the performance of something the promisee was already legally obliged to do.
D)The price paid has some legal value even if it is not a fair or adequate price.

Question 60

In which of the following situations are the parties to an agreement that is expressed to be 'subject to legal advice' able to change their minds about the agreement prior to the legal advice?

A)The parties intend the agreement to be legally enforceable immediately and simply propose to have the agreement restated more formally.
B)The parties intend the agreement to be legally enforceable immediately but they also intend to make another agreement that will eventually be substituted for the first agreement.
C)The parties do not intend the agreement to be legally enforceable until the legal advice is received.
D)The parties intend the agreement to be legally enforceable immediately but they also intend to terminate the agreement if recommended by the legal advice.

Question 61

The consequences of forming a contract that contravenes the terms of a statute:

A)Are that the parties are penalised.
B)Are that the contract is invalid.
C)Are that the parties are penalised and the contract is valid.
D)Depend upon the wording of the statute.

Question 62

JJ offers to sell his yacht to Tom for $250,000.Tom sends JJ an email asking if he would prefer payment in instalments or in one lump sum.Which of the following is true?

A)Tom has made a counter-offer.
B)Tom has rejected JJ's offer and lost the right to later accept the offer.
C)Tom has made a request for further information that is neither an acceptance nor a rejection of the offer.
D)Tom has accepted JJ's offer.

Question 63

At an auction, a call for bids is:

A)An offer by the person calling for bids to sell the item being auctioned.
B)An invitation to treat by the person calling for bids.
C)A conditional agreement between the bidders and the person calling for bids where the condition precedent is that the offeree must win the bid.
D)An acceptance by the person calling for bids of the offers by the bidders.

Question 64

Which of the following is the best example of a transaction that will be presumed to have the necessary intention to be legally enforceable?

A)A father promises to buy his daughter a pizza.
B)A doctor promises to visit her sick sister for a check-up.
C)A borrower promises to repay a loan.
D)A university student promises to meet his friends at the pub.

Question 65

Which of the following statements is most correct?

A)A contract is a type of agreement.
B)The terms 'contract' and 'agreement' mean the same thing.
C)An agreement is a legally enforceable contract.
D)Not all contracts are agreements.

Question 66

Which of the following is not an example of a contract?

A)The lease of a car.
B)The hiring of a worker.t
C)The purchase of food from a supermarket.
D)The payment of a fine.

Question 67

If X makes a verbal offer to Y, which of the following is not an effective means of communicating acceptance?

A)Y sends her acceptance by registered post.
B)Y sends her acceptance by email.
C)Y sends her acceptance by SMS.
D)X hears about Y's acceptance from Z.

Question 68

Which of the following is an example of a 'unilateral contract'?

A)Ash puts up signs offering a reward to whoever finds her lost dog.
B)Ash offers to buy Johnny's car for $5000.
C)Ash buys a book online.
D)Ash hires a new employee.

Question 69

Keith offers to sell Nat his 20-year old car for $3,000 and Nat accepts the offer.The next day, Keith finds out that his car is actually worth $5,000.Which of the following is the best answer?

A)Keith can seek to claim the correct value of the car from Nat.
B)Keith can terminate the contract for common mistake and find a new buyer.
C)Keith can refuse to perform the contract due to lack of adequate consideration.
D)Keith must perform the contract.

Question 70

Which of the following contracts are not illegal under common law?

A)A contract to defame a celebrity.
B)A contract to bribe a politician.
C)A contract to avoid the payment of tax by restructuring income payments.
D)A contract not to appear as a witness in a criminal trial.

Question 71

James is the owner of LowCal, a local sandwich bar.He offers to sell the business to Jansen, a wealthy 17-year old, for $50,000.Jansen accepts the offer but on the day when the contract is to be performed, James tells Jansen that he has changed his mind and no longer wishes to sell the business.What can Jansen do?

A)Nothing, because Jansen is a minor and therefore incapable of enforcing a contract.
B)Enforce the contract, because sandwiches are food and therefore it is a contract for 'necessaries'.
C)Enforce the contract, because contracts are still enforceable by minors even if they are not enforceable against minors.
D)Nothing, because James is entitled to change his mind.

Question 72

The WA government is building an industrial park and calls for tenders from several construction companies.Which of the following is true?

A)The call for tenders is an offer, and acceptance occurs when the government receives the lowest bid.
B)The call for tenders is an invitation to treat and the tenders are offers.
C)The first company to submit its tender will be taken to have accepted the offer by the government.
D)The call for tenders is a promise to accept the first tender.

Question 73

Haj promises to transfer to Johnny a jukebox worth $1,000.Which of the following is not valid consideration for Haj's promise?

A)Payment by Johnny of $50 cash for the jukebox.
B)The transfer by Johnny to Haj of Johnny's car worth $3,000.
C)A promise by Johnny to mow Haj's lawn every month for a year.
D)A promise by Johnny to buy something nice for Haj in return.

Question 74

Ash and Rachel are sisters.They agree to go on holiday together to Tasmania the following month.A week later Rachel tells Ash she wants to go by herself.Ash accuses Rachel of breaching their contract.Which of the following is true?

A)There is no contract because their agreement was not in writing.
B)There is a valid contract that has been breached by Rachel.
C)There is no contract because the parties will be assumed to have lacked the intention to be legally bound.
D)There is no contract because there is no agreement.

Question 75

A contract to provide a minor with necessaries is enforceable against the minor.'Necessaries' do not include:

A)Medical treatment.
B)A school uniform.
C)Overseas travel.
D)School fees.

Question 76

Which of the following is an example of a lack of intellectual capacity?

A)Insanity.
B)Fury.
C)Stupidity.
D)Distraction.

Question 77

Johnny sees his brother-in-law Tom one night outside a club.Tom is clearly drunk and barely recognises Johnny.Johnny offers to get Tom home safely if Tom will lend Johnny his motorcycle the following weekend.Johnny gets Tom home safely but the following weekend Tom refuses to give Johnny his motorcycle.Which of the following is true?

A)There is a contract between Johnny and Tom of which Tom is now in breach.
B)Johnny cannot enforce Tom's promise because he did not provide consideration.
C)The contract is unlikely to be enforceable due to Tom's lack of contractual capacity.
D)The contract is unenforceable because it was not in writing.