Q. In contract law, what does 'capacity to contract' refer to?
-
A.
The ability to understand the terms of a contract
-
B.
The requirement of a written contract
-
C.
The necessity of legal representation
-
D.
The ability to negotiate terms
Solution
Capacity to contract refers to the legal ability of a party to enter into a binding contract.
Correct Answer:
A
— The ability to understand the terms of a contract
Learn More →
Q. In the case of Carlill v Carbolic Smoke Ball Co, what was established?
-
A.
The necessity of a written contract
-
B.
The validity of unilateral offers
-
C.
The requirement of consideration
-
D.
The importance of mutual consent
Solution
The case established the validity of unilateral offers, where acceptance occurs through performance.
Correct Answer:
B
— The validity of unilateral offers
Learn More →
Q. What happens if a contract is breached?
-
A.
The contract is automatically void
-
B.
The breaching party must pay damages
-
C.
The contract remains valid
-
D.
The non-breaching party must continue performance
Solution
If a contract is breached, the breaching party is typically liable for damages.
Correct Answer:
B
— The breaching party must pay damages
Learn More →
Q. Which of the following is an example of a condition precedent?
-
A.
A contract that is void from the start
-
B.
A contract that requires payment before delivery
-
C.
A contract that is fulfilled immediately
-
D.
A contract that can be terminated at any time
Solution
A condition precedent is an event that must occur before a contract becomes effective, such as payment before delivery.
Correct Answer:
B
— A contract that requires payment before delivery
Learn More →
Showing 1 to 4 of 4 (1 Pages)
