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Contract Law Test Review Flashcards | StudBud
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Contract Law Test Review
Contract Law Test Review
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1
What distinguishes the lapse of an offer from the rejection of an offer?
Acceptance has not occurred when an offer lapses
An option agreement cannot lapse, but it may be rejected
Acceptance of an offer will be subject to rejection
A lapse requires a communication of deliberate intent by the offeree
2
Which terms in a contract are the ones that are the foundation of the contract?
the time period within which all obligations must be performed
that there has been a formal intention to create legal relations
that all of the parties to the contract have legal capacity to contract
the binding commitments that form the essence of the contract
3
What distinguishes the lapse of an offer from the rejection of an offer?
An option agreement cannot lapse, but it may be rejected
A lapse requires a communication of deliberate intent by the offeree
Acceptance of an offer will be subject to rejection
Acceptance has not occurred when an offer lapses
4
Which terms in a contract are the ones that are the foundation of the contract?
the binding commitments that form the essence of the contract
that there has been a formal intention to create legal relations
the time period within which all obligations must be performed
that all of the parties to the contract have legal capacity to contract
5
What are the elements of importance emphasized by contract law as it pertains to the legal capacity to form contracts?
consent and voluntariness
offer and acceptance
essentials of a contract
immunity from liability
6
What is meant by the term "contractual
quantum meruit
"?
a promise to pay a fair price
as much as someone will pay
as much as merited or deserved
a term required to imply payment
7
What principle could you expect Canadian courts to apply when faced by cases dealing with standard form contracts
Ambiguous terms are interpreted against the party whoprepared the contract
Terms are to be set out in plain language
Pre-printed terms must be put inside a box to which reference is made
Customers' continued use amounts to acceptance of unilateral amendments
8
Which of the following is NOT an example of an invitation to treat?
a display of goods in a retail store
a lost and found advertisement
an expression of interest to enter negotiations
a newspaper advertisement
9
What test will a court apply when asked to determine a matter involving a dispute regarding the formation of a contract?
whether the contract is sufficient to provide certainty to all parties
whether the parties have legal capacity to enter into contracts
whether a reasonable person could conclude an offer and acceptance occured
whether the terms of the contract provide sufficient mutual consideration
10
A contract that allows a wronged party to withdraw from the contract is...
Void
Voidable
Devoid
Illegal
11
Which of the following best describes the relationship between bargaining power and the law of contract?
law of contract seeks to correct inequalities in bargaining power
law of contract not concerned with the parties' relative bargaining power
goal of law of contract is to reduce the bargaining power of the parties
law of contract is concerned with the relative bargaining power of parties
12
What must be present in order for a condition subsequent to be recognized as legally enforceable?
reasonable certainty of an unforeseen occurrence of an event
sufficient fulfillment of each parties' collateral contractual obligations
reasonable certainty and objectivity; otherwise, the condition will fail
sufficient detail; otherwise, the uncertain condition is unenforceable
13
Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?
Contracts require that the parties treat each other fairly
Contracts must be in writing to be enforceable
A contract involves a bargain or exchange between the parties
There must always be at least two parties to a contract
14
What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?
The promise must be accepted
The innocent party must agree to a "price" for the defendant's promise
The consideration must be adequate
The work must be performed
15
What is the function of an express term with respect to a contract?
It gives effect to the parties' intentions
It explicitly states contractual promises
It implicitly states contractual promises
It brings an existing contract to an end
16
Which of the following best describes the relationship between bargaining power and the law of contract?
law of contract not concerned with the parties' relative bargaining power
goal of law of contract is to reduce the bargaining power of the parties
law of contract is concerned with the relative bargaining power of parties
law of contract seeks to correct inequalities in bargaining power
17
Why should one NOT rely on the common law doctrine of frustration in contractual negotiations?
frustration operates in limited circumstances
frustration says the contract terms are settled at the time of acceptance
frustration says that you do not have to honour your obligations
frustration is unreliable operates in narrow cases
18
what is a contract
agreement between parties
legal binging agreement
agreement
legal agreement between two person or party
19
Which of the following would provide that a supplier will NOT be liable to a retailer if it is fails to deliver products
an exemption clause
a limitation of liability clause
a condition precedent
a liquidated damages clause
20
Which of the following statements is true regarding legally enforceable contracts?
The agreement must have been in writing
The agreement must have been witnessed
The agreement must have been voluntary
The agreement must have been signed by the parties
21
In what way are promises between family members treated differently than promises between other parties?
Contracts between family members are prohibited
The law presumes promises between family members are non-contractual
Family members cannot sue one another for breach of contract
Promises between family members are always treated as gratuitous promises
22
What is the term given to the guiding principles for interpreting the terms of a contract?
Thompson's Rules
The Rules of Construction
The Rules of Interpretation
The Parol Evidence Rules
23
What is the likely outcome if a court is asked to resolve a dispute where parties have reached an incomplete agreement
Using the common law, the court will find a binding contract
The court will decline jurisdiction to provide a remedy
Using statute law the court will find a binding contract
The court will forward the matter to mediation
24
Which one is NOT an advantage of contracts?
there are various options fordispute resolution
allow parties to plan their business affairs
permit both parties to rely on the terms they have negotiated
They allow gratuitous promises to be relied upon
25
Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?
Contracts require that the parties treat each other fairly.
Contracts must be in writing to be enforceable.
There must always be at least two parties to a contract.
A contract involves a bargain or exchange between the parties.
26
Offeror has specified the method of communication. How would a c court determine whether acceptance had been perfected?
Acceptance by a specified method of communication must be reasonable
The offer cannot be accepted by another method of communication
Acceptance by other means is effective when received by the offeror
the offer must have been made using the same method of communication
27
The purchase of stationery supplies from a retailer for cash, without an invoice or a receipt being provided in return,
a standard form agreement
a formal contract
an informal agreement
an incomplete agreement
28
which of the following is correct ways in which a contract can be terminated
a) death of party
b) lapse of time
d)all of the above
c) breach of contract
29
Holding a gun to ones head to induce them to enter a contract is which of the following legally exceptional circumstance
undue inducement resulting from actual pressure
undue influence resulting from actual pressure
misrepresentation resulting from presumed pressure
unconscionability resulting from presumed pressure
30
Under what circumstances would a court apply the objective standard test?
where it is unclear whether the parties intended to form a contract
when deciding the amount of damages to award
if the enforcement of the contract might cause harm to a third party
if there is inequality of bargaining power between the parties
31
Which of the following statements regarding contract terms is correct?
Contract terms are an aid for a court to interpret a business arrangement
Contract terms must be reasonable
Contract terms must be in writing to be effective
Contract terms may be express or implied
32
What key ingredient must be present in order to distinguish a legally enforceable promise from one legally unenforceable
consideration
acceptance
formalization
revocation
33
In order to form the basis for a contract, an offer must satisfy what condition?
It must contain a request
It must state when the offer will expire
It must contain all essential terms
It must be in writing
34
What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?
The promise must be accepted
The work must be performed
The innocent party must agree to a "price" for the promise
The consideration must be adequate
35
What is the name given to a clause in which the parties agree that their contract is complete as written?
express term
parol evidence clause
exclusion clause
entire contract clause
36
An agreement or contract that is considered completely out of line
Unconscionable
verdict
uttering
Trade
37
Luis believes his contract with ABC Homebuilder's Inc. is unconscionable. What must Luis prove in order to win his case?
Luis must prove undue influence was present
Luis must prove the parties are in a relationship of utmost good faith
Luis must prove inequality and an improvident bargain or exploitation
Luis must prove the presence of actual pressure
38
The legal ingredients of a contract include all except..
Offer
consideration
promise
acceptance
39
Which is not an element of a contract?
Should be deliberately made
Not necessarily in writing
between 2 or more competent persons
should be supported by a promise
40
When resolving contractual conflicts, what laws do the courts usually apply?
Judges make all decisions based on principles of fairness and equity
Judges apply common law and occasionally statutory law
the Sale of Goods Act
the Contracts Act
41
Under what circumstances might a court apply the "Best Evidence Rule"?
if the parties have entered into an oral contract with witnesses
when applying an electronic contract
where evidence has been lost before trial
when interpreting an implied term in a written contract
42
What is the name given to a clause in which the parties agree that their contract is complete as written?
express term
entire contract clause
parol evidence clause
exclusion clause
43
What is the definition of "duress" with respect to contractual relationships?
unfair manipulation that compromises someone's free will
inequality between the parties
the threat of physical or economic harm that results in a contract
unfair criminal activity that seriously undermines a contract
44
Which of the following statements regarding contract terms is correct?
Contract terms must be reasonable
Contract terms are an aid for a court to interpret a business arrangement
Contract terms must be in writing to be effective
Contract terms may be express or implied
45
In what way is a void contract different from a voidable contract?
voidable contract fails to satisfy the Sale of Goods Act
voidable contract fails to meet the requirements of the Statute of Frauds
void contract has a defect so substantial that it is of no force or effect
void contract cannot be enforced because it is contrary to public policy
46
In order to form the basis for a contract, an offer must satisfy what condition?
It must state when the offer will expire
It must be in writing
It must contain a request
It must contain all essential terms
47
What is the legal definition of "mistake"?
an error made by one or both parties that seriously undermines a contract
an unfair manipulation that compromises someone's free will
the threat of physical or economic harm that results in a contract
a false statement of fact that causes someone to enter a contract
48
How would you expect a court to apply the parol evidence rule to an unclear contract
Disregard the rule and allow extrinsic evidence
Disregard the rule and apply the reasonable person test
Abide by the rule and apply implied terms for clarification
Abide by the rule and use its discretion to infer a clarification
49
In what way is a void contract different from a voidable contract?
voidable contract fails to satisfy the Sale of Goods Act
void contract has a defect so substantial that it is of no force or effect
voidable contract fails to meet the requirements of the Statute of Frauds
void contract cannot be enforced because it is contrary to public policy
50
What is the legal term for a clause that makes a contract enforceable only if the buyer is satisfied with an inspection?
a liquidated damages clause
a condition precedent
a condition subsequent
a limitation of liability clause
