Deck 2: Fundamentals of Contract Law: Acceptance, Validity, and Performance

Question 1

Which of the following does not constitute valid acceptance

A)it has been communicated
B)it is absolute and unqualified
C)it has been presumed from silence of offeree
D)the offer has been accepted by the proper person

Answer 1

it has been presumed from silence of offeree

Question 2

Which of the following is not the legal requirements of a valid offer

A)it must be communicated to the offeree
B)it must be made with a view to obtain offeree's assent
C)it must express offeree's final willingness
D)it must be made to a specific person and not to public at large

Answer 2

it must be made to a specific person and not to public at large

Question 3

As a general rule, an agreement made without consideration is

A)void
B)valid
C)voidable
D)unlawful

Answer 3

void

Question 4

An agreement made with free consent to which the consideration is lawful but inadequate, is

A)void
B)valid
C)voidable
D)unlawful

Question 5

For the enforcement of a promise to pay a time-barred debt without consideration, which of the following condition is not required?

A)it must be in writing
B)it must be definite and express
C)it must be signed by the promisor
D)it must be registered in court of law

Question 6

A contract is discharged by the breach when a party to a contract

A)refuses to perform his promise
B)fails to perform his promise
C)disables himself from performing his part of the promise
D)all of the above

Question 7

Which of the following is incorrect?

A)the impossibility to perform a promise discharges the contract
B)a merger discharges the contract
C)an initial impossibility discharges the contract
D)all of the above

Question 8

The doctrine of impossibility of performance, rendering a contract void, is based on

A)a commercial impossibility
B)a supervening impossibility
C)just and reasonable ground
D)an unjust enrichment

Question 9

Because of supervening event, the promisor is excused from the performance of the contract. This is known as

A)a doctrine of frustration
B)an initial impossibility
C)a doctrine of ultra-vires
D)an operation of law

Question 10

Which of the following is correct?

A)a novation means making a new contract in the place of an old contract
B)an alteration means making a new contract in the place of an existing one
C)the performance of a contract is not a method of discharge of contract
D)all of the above

Question 11

_________ indicates that the parties are not further bound under the contract

A)waiver of a contract
B)breach of a contract
C)rescission of a contract
D)discharge of a contract

Question 12

X contracts to sell his scooter to Y for Rs. 50,000 and Y agrees to pay on delivery. Both the parties perform their promises. This is called

A)a waiver
B)breach of a contract
C)an attempted performance of contract
D)an actual performance of a contract

Question 13

Assignment by the operation of law takes place

A)by the mutual consent of the parties
B)by the will of either party
C)when the subject matter of a contract ceases to exist
D)by the death of a party to a contract

Question 14

The original contract needs not to be performed, if there is

A)rescission of contract
B)novation of contract
C)alteration of contract
D)all of the above

Question 15

Rescission of a contract means

A)the termination of the contract
B)the renewal of the contract
C)the alteration of the contract
D)the substitution of the new contract in the place of the earlier one

Question 16

When the parties mutually agree to change certain terms of the contract. This is called

A)a rescission of the contract
B)the novation of a contract
C)an alteration of a contract
D)a remission of a contract

Question 17

If a person accepts a lesser sum of money than what was contracted for, in the discharge of the whole debt, it is known as

A)a waiver
B)a remission
C)an alteration
D)a rescission

Question 18

Intentional relinquishment of a right under the contract is called

A)a waiver
B)a breach
C)a rescission
D)an alteration

Question 19

Where a party to contract transfers his rights under the contract to another person, it is legally known as

A)novation of a contract
B)rescission of a contract
C)waiver of a contract
D)assignment of a contract

Question 20

Performance of a contract means

A)fulfilling all the obligations by the promisee
B)fulfilling all the obligations by the promisor
C)performing all the promises, and fulfilling all the obligations by all the parties
D)both (a) & (b)

Question 21

Offer to perform is called

A)attempted performance
B)caveat emptor jus in rem
C)jus in personam
D)jus in rem caveat emptor

Question 22

Which is not the essential of a valid tender?

A)tender must be conditional
B)tender must be made at a proper place
C)tender must be for obligation
D)tender must be made at proper time

Question 23

An offer of performance is known as a/an

A)offer
B)proposal
C)tender
D)acceptance

Question 24

The offer to perform the contract must be

A)unconditional
B)conditional
C)rational
D)provisional

Question 25

The promises forming consideration for each other are called

A)reciprocal promises
B)mutual promises
C)independent promises
D)none of the above