Deck 7: Introduction to Contracts

Question 1

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

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.

Answer 1

D

Question 2

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

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.

Answer 2

C

Question 3

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

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.

Answer 3

A

Question 4

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

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

Question 5

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

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 6

List and explain five things about your life which would be drastically different if the law of contract could not be used to enforce promises.

Question 7

Which of the following is an essential element in determining the validity of a simple contract?

A) Genuine consent.
B) Consideration.
C) Legality of purpose and form.
D) Legal capacity.

Question 8

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

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 9

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

Question 10

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

Question 11

Which of the following is NOT required to bring a simple contract into existence?

A) There must be genuine consent.
B) There must be an agreement.
C) There must be valuable consideration.
D) There must be a real intention to be bound.

Question 12

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

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 13

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

A) The payment of tax.
B) The hiring of an employee.
C) The purchase of food from a takeaway restaurant.
D) The lease of a house.

Question 14

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

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 15

The Australia Consumer Law has replaced the English common law as a source of law in Australia.

Question 16

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

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.

Question 17

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

Question 18

For the creation of an apparent simple contract, intention, agreement and consideration must be shown to be present.

Question 19

Which of the following statements is NOT correct in respect to determining when an agreement is a contract?

A) It is generally not necessary that a contract be in writing to be enforceable.
B) The courts are not concerned with the intention of the parties as it is a private matter.
C) Sometimes the law implies the existence of a valid contract.
D) The parties in an agreement do not always intend to create legal relations.

Question 20

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

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 21

What is a quasi-contract?

Question 22

E-contracts are regulated by:

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

Question 23

The decision in Lee Road Pty Ltd v Catanzariti & Anor [2005] SADC 64 was that an exchange of faxes was sufficient to satisfy the requirement for written evidence of a contract.

Question 24

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

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 25

Acceptance of an e-contract occurs when the buyer clicks on the 'Send' button.

Question 26

A bilateral contract is:

A) An agreement creating mutual obligations.
B) The most common form of contract.
C) An exchange of promises.
D) All of the above.

Question 27

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

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

Question 28

A valid contract is one which can be enforced by both parties.

Question 29

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

Question 30

A contract for the sale of land that is not evidenced in writing will be:

A) Void.
B) Unenforceable.
C) Voidable.
D) Executory.

Question 31

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

Question 32

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

Question 33

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

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

Question 34

In the context of an e-contract, acceptance of an offer takes place:

A) When the offeree sends the message to the offeror.
B) When the offeror sends the message to the offeree.
C) When the offeror receives the message from the offeree.
D) When the offeree receives the message from the offeror.

Question 35

A formal contract derives its validity from its form alone and does not require consideration to be present.

Question 36

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

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

Question 37

Which of the following statements is the best definition of a 'formal contract'?

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

Question 38

British and Australian courts over the centuries have been willing to extend and modify the rules of contract law to apply them to new technologies such as the telephone and facsimile. Why do you think that the application of contract law to online transactions required the passing of specific Electronic Transactions legislation?

Question 39

What is the difference between a formal contract and a simple contract? Provide examples of each.