Question 1

Which of the following contracts is NOT required to be wholly in writing?

Accepted Answer

A)  A cheque. 
B)  A promissory note. 
C)  A contract of guarantee. 
D)  A hire purchase agreement.

Question 2

Which of the following statements is correct in respect to the nature of a contract?

Accepted Answer

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

Question 3

A contract that is wholly in writing is an example of:

Accepted Answer

A)  An executory contract. 
B)  A contract of record. 
C)  An executed contract. 
D)  An express contract.

Question 4

In the context of contract law, which of the following best describes the element of 'consideration'?

Accepted Answer

A)  Something of value passing from one party to another in return for a promise to do something. 
B)  An offer by one party and an acceptance by the other. 
C)  The parties must intend that their promises create legally enforceable obligations. 
D)  All of the above.

Question 5

E-contracts are regulated by:

Accepted Answer

A)  The common law. 
B)  The Electronic Transactions Acts. 
C)  The Australian Consumer Law. 
D)  All of the above.

Question 6

A contract is always an agreement but an agreement is not always a contract.

Accepted Answer

A) True 
 B)False

Question 7

In the context of contract law, which of the following best describes the element of 'intention'?

Accepted Answer

A)  Something of value passing from one party to another in return for a promise to do something. 
B)  An offer by one party and an acceptance by the other. 
C)  The parties must intend that their promises create legally enforceable obligations. 
D)  All of the above.

Question 8

Catching a train or a bus is a good example of:

Accepted Answer

A)  A Quasi-contract. 
B)  An executed contract. 
C)  An implied contract. 
D)  An express contract.

Question 9

Which of the following statements is the best description of an 'unenforceable' contract?

Accepted Answer

A)  The contract remains valid and binding unless and until it is repudiated by the injured party. 
B)  There are no legal rights or obligations from the outset, and the contract cannot be enforced by either party. 
C)  While the contract is valid on its face, no legal action can be brought on it. 
D)  The purpose of the contract contravenes a statute or the common law.

Question 10

A unilateral contract is one where both parties still have to perform their obligations.

Accepted Answer

A) True 
 B)False

Question 11

Under a void contract there are no legal rights or obligations.

Accepted Answer

A) True 
 B)False

Question 12

What are the elements that are necessary for the creation of a valid simple contract?

Accepted Answer

The answer of What are the elements that are necessary...

Question 13

A 'happy hour' offering half price drinks between 6:00 and 7:00 every Friday is an example of a:

Accepted Answer

A)  Bilateral contract. 
B)  Express contract. 
C)  Implied contract. 
D)  Unilateral contract.

Question 14

To determine the validity of a contract, the intention of the parties must be considered.

Accepted Answer

A) True 
 B)False

Question 15

The formation of an e-contract is identical to a conventional contract.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the best description of an 'illegal' contract?

Accepted Answer

A)  The contract remains valid and binding unless and until it is repudiated by the injured party. 
B)  There are no legal rights or obligations from the outset, and the contract cannot be enforced by either party. 
C)  While the contract is valid on its face, no legal action can be brought on it. 
D)  The purpose of the contract contravenes a statute or the common law.

Question 17

Which of the following statements does NOT describe a 'simple contract'?

Accepted Answer

A)  A contract created by written or oral words. 
B)  A contract created by conduct or the actions of parties. 
C)  A contract that requires a special form or method of creation. 
D)  A contract that does not require a special form but must have consideration present.

Question 18

Which of the following statements is the best description of a 'void' contract?

Accepted Answer

A)  The contract remains valid and binding unless and until it is repudiated by the injured party. 
B)  There are no legal rights or obligations from the outset, and the contract cannot be enforced by either party. 
C)  While the contract is valid on its face, no legal action can be brought on it. 
D)  The purpose of the contract contravenes a statute or the common law.

Question 19

Which of the following conditions is NOT an essential requirement for all contracts?

Accepted Answer

A)  The contract must be in written form. 
B)  The parties must consent to the contract. 
C)  The purpose of the contract must be legal. 
D)  The parties must have capacity to contract.

Exam 7: Introduction to Contracts

Which of the following contracts is NOT required to be wholly in writing?

Which of the following statements is correct in respect to the nature of a contract?

A contract that is wholly in writing is an example of:

In the context of contract law, which of the following best describes the element of 'consideration'?

E-contracts are regulated by:

A contract is always an agreement but an agreement is not always a contract.

In the context of contract law, which of the following best describes the element of 'intention'?

Catching a train or a bus is a good example of:

Which of the following statements is the best description of an 'unenforceable' contract?

A unilateral contract is one where both parties still have to perform their obligations.

Under a void contract there are no legal rights or obligations.

What are the elements that are necessary for the creation of a valid simple contract?

A 'happy hour' offering half price drinks between 6:00 and 7:00 every Friday is an example of a:

To determine the validity of a contract, the intention of the parties must be considered.

The formation of an e-contract is identical to a conventional contract.

Which of the following is the best description of an 'illegal' contract?

Which of the following statements does NOT describe a 'simple contract'?

Which of the following statements is the best description of a 'void' contract?

Which of the following conditions is NOT an essential requirement for all contracts?