Formation of a Contract: Contract Law Quiz (Questions and Answers)

The journey of a contract from a mere idea to a binding agreement is nothing short of fascinating.

Formation of a Contract is a path paved with crucial steps, each carrying its own significance and charm, guiding parties from the spark of an initial proposal to the final handshake of agreement.

This journey, often taken for granted, is essential in shaping the legal landscapes of both personal and professional realms.

At the heart of Formation of a Contract are key elements: offer, acceptance, consideration, invitation to treat, and the intention to enter legal relations.

These components are not just legal jargon but the very building blocks of any contract, each playing a unique role in the dance of creating a binding agreement.

As we delve into the world of formation of a contract quiz, whether you are a student, a legal professional, or just someone curious about the legalities of contractual agreements, understanding these elements is key to navigating the world with a bit more insight and a lot more confidence.

Formation of a Contract Quiz

1. What is the presumption regarding the intention to create legal relations in cases of domestic and social agreements?

  • A) The presumption is that the parties intended to create legal relations
  • B) The presumption is that the parties did not intend to create legal relations
  • C) The presumption is that the parties had no discernible intention
  • D) The presumption is that the parties intended to create legal relations, but it is easily rebutted

Answer: B) The presumption is that the parties did not intend to create legal relations

2. In a unilateral contract, the offeror can revoke the offer at any time before the offeree completes the performance, even if the offeree has already begun performing the requested act. True or False?

False: While it’s true that an offer in a unilateral contract can generally be revoked before acceptance, once the offeree has begun performing the requested act, the offeror is typically prevented from revoking the offer until a reasonable time has passed for the offeree to complete the performance.

3. What factors may persuade a court to hold that the presumption of no intention to create legal relations in domestic and social agreements has been rebutted?

  • A) The financial capacity of the parties involved
  • B) The geographical location of the agreement
  • C) The context in which the agreement was made and any reliance placed upon the agreement
  • D) The educational background of the parties

Answer: C) The context in which the agreement was made and any reliance placed upon the agreement

4. In which case did the Court of Appeal hold that an agreement between a mother and daughter was not intended to be legally binding?

  • A) Jones v Padavatton
  • B) Lens v Devonshire Social Club
  • C) Balfour v Balfour
  • D) Hardwick v Johnson

Answer: A) Jones v Padavatton

5. In a situation where an offer specifies that acceptance must be communicated via postal mail, but the acceptor sends acceptance by email, which the offeror reads and does not object to, a contract is legally formed based on the principle of acceptance by conduct. True or False?

True: This situation illustrates the principle that if the offeror acts in a manner that reasonably indicates acceptance of the acceptance by conduct (in this case, reading the email and not objecting), a contract is formed even if the acceptance did not follow the specified method. This is because the offeror’s behaviour can be interpreted as waiving the initially specified requirement for acceptance.

6. What is the preferred interpretation of the objective test in assessing the intention of the parties in contract law?

  • A) The standard of detached objectivity
  • B) The standard of reasonable person in the shoes of the person making the offer
  • C) The standard of reasonable person in the shoes of the promisee
  • D) The standard of reasonable person in the shoes of the promisor

Answer: A) The standard of detached objectivity

7. Under the doctrine of promissory estoppel, a promise that lacks consideration can still be enforceable if the promisor reasonably expects the promise to induce action or forbearance on the part of the promisee, and the promisee does act or forbear in reliance on the promise. True or False?

True: The doctrine of promissory estoppel allows a promise without consideration to be enforced if it is made under circumstances that should reasonably lead the promisor to expect that the promise would induce action or forbearance by the promisee, and the promisee does rely on the promise to their detriment.

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