Question 1

Which of the following does not constitute valid acceptance&#10;A)it has been communicated&#10;B)it is absolute and unqualified&#10;C)it has been presumed from silence of offeree&#10;D)the offer has been accepted by the proper person

Accepted Answer

Acceptance must be communicated to the offeror to be valid, except in very specific circumstances where silence can be considered acceptance due to prior dealings or agreement. Generally, silence is not considered a valid form of acceptance in contract law.

Question 2

Which of the following is not the legal requirements of a valid offer&#10;A)it must be communicated to the offeree&#10;B)it must be made with a view to obtain offeree's assent&#10;C)it must express offeree's final willingness&#10;D)it must be made to a specific person and not to public at large

Accepted Answer

A valid offer can be made to the public at large, not just to a specific person. This is common in advertisements and general invitations to treat, where the offeror invites actions from anyone who may fulfill the conditions of the offer.

Question 3

As a general rule, an agreement made without consideration is&#10;A)void&#10;B)valid&#10;C)voidable&#10;D)unlawful

Accepted Answer

Consideration is a fundamental component of a valid contract. Without consideration, an agreement is generally considered void because there is no exchange of value between the parties to bind them to the agreement.

Question 4

An agreement made with free consent to which the consideration is lawful but inadequate, is&#10;A)void&#10;B)valid&#10;C)voidable&#10;D)unlawful

Accepted Answer

The adequacy of consideration is not a requirement for the validity of an agreement under contract law. As long as the consideration is lawful and there is free consent, the agreement is valid, even if the consideration is deemed inadequate.

Question 5

For the enforcement of a promise to pay a time-barred debt without consideration, which of the following condition is not required?&#10;A)it must be in writing&#10;B)it must be definite and express&#10;C)it must be signed by the promisor&#10;D)it must be registered in court of law

Accepted Answer

The requirement for the enforcement of a promise to pay a time-barred debt without consideration does not include registration in a court of law. The promise must be in writing, definite and express, and signed by the promisor, but there is no requirement for court registration.

Question 6

A contract is discharged by the breach when a party to a contract&#10;A)refuses to perform his promise&#10;B)fails to perform his promise&#10;C)disables himself from performing his part of the promise&#10;D)all of the above

Accepted Answer

A contract is discharged by breach when a party refuses to perform, fails to perform, or disables himself from performing his part of the promise. All these actions prevent the fulfillment of the contract's terms, thus discharging it by breach.

Question 7

Which of the following is incorrect?&#10;A)the impossibility to perform a promise discharges the contract&#10;B)a merger discharges the contract&#10;C)an initial impossibility discharges the contract&#10;D)all of the above

Accepted Answer

An initial impossibility, also known as "impossibility ab initio," means the contract was never valid from the start, so it doesn't discharge the contract because there was no valid contract to begin with.

Question 8

The doctrine of impossibility of performance, rendering a contract void, is based on&#10;A)a commercial impossibility&#10;B)a supervening impossibility&#10;C)just and reasonable ground&#10;D)an unjust enrichment

Accepted Answer

The doctrine of impossibility of performance, which can render a contract void, is based on a supervening impossibility. This means that after the contract was made, an unforeseen event occurred making it impossible to fulfill the contract's obligations.

Question 9

Because of supervening event, the promisor is excused from the performance of the contract. This is known as&#10;A)a doctrine of frustration&#10;B)an initial impossibility&#10;C)a doctrine of ultra-vires&#10;D)an operation of law

Accepted Answer

The doctrine of frustration applies when an unforeseen event occurs after the contract has been formed, making it physically or legally impossible to fulfill the contract, or transforming the obligation to perform into a radically different obligation from that undertaken at the moment of entry into the contract.

Question 10

Which of the following is correct?&#10;A)a novation means making a new contract in the place of an old contract&#10;B)an alteration means making a new contract in the place of an existing one&#10;C)the performance of a contract is not a method of discharge of contract&#10;D)all of the above

Accepted Answer

A novation involves replacing an existing contract with a new one, where the parties agree to discharge the old contract and create a new agreement. This is distinct from an alteration, which modifies the terms of the existing contract without creating a new one. Performance of a contract is indeed a method of discharge, as fulfilling the obligations as agreed discharges the parties from further obligations under that contract.

Question 11

_________ indicates that the parties are not further bound under the contract&#10;A)waiver of a contract&#10;B)breach of a contract&#10;C)rescission of a contract&#10;D)discharge of a contract

Accepted Answer

The answer of _________ indicates that the parties are not...

Question 12

X contracts to sell his scooter to Y for Rs. 50,000 and Y agrees to pay on delivery. Both the parties perform their promises. This is called&#10;A)a waiver&#10;B)breach of a contract&#10;C)an attempted performance of contract&#10;D)an actual performance of a contract

Accepted Answer

The answer of X contracts to sell his scooter to...

Question 13

Assignment by the operation of law takes place&#10;A)by the mutual consent of the parties&#10;B)by the will of either party&#10;C)when the subject matter of a contract ceases to exist&#10;D)by the death of a party to a contract

Accepted Answer

The answer of Assignment by the operation of law takes...

Question 14

The original contract needs not to be performed, if there is&#10;A)rescission of contract&#10;B)novation of contract&#10;C)alteration of contract&#10;D)all of the above

Accepted Answer

The answer of The original contract needs not to be...

Question 15

Rescission of a contract means&#10;A)the termination of the contract&#10;B)the renewal of the contract&#10;C)the alteration of the contract&#10;D)the substitution of the new contract in the place of the earlier one

Accepted Answer

The answer of Rescission of a contract means&#10;A)the termination of...

Question 16

When the parties mutually agree to change certain terms of the contract. This is called&#10;A)a rescission of the contract&#10;B)the novation of a contract&#10;C)an alteration of a contract&#10;D)a remission of a contract

Accepted Answer

The answer of When the parties mutually agree to change...

Question 17

If a person accepts a lesser sum of money than what was contracted for, in the discharge of the whole debt, it is known as&#10;A)a waiver&#10;B)a remission&#10;C)an alteration&#10;D)a rescission

Accepted Answer

The answer of If a person accepts a lesser sum...

Question 18

Intentional relinquishment of a right under the contract is called&#10;A)a waiver&#10;B)a breach&#10;C)a rescission&#10;D)an alteration

Accepted Answer

The answer of Intentional relinquishment of a right under the...

Question 19

Where a party to contract transfers his rights under the contract to another person, it is legally known as&#10;A)novation of a contract&#10;B)rescission of a contract&#10;C)waiver of a contract&#10;D)assignment of a contract

Accepted Answer

The answer of Where a party to contract transfers his...

Question 20

Performance of a contract means&#10;A)fulfilling all the obligations by the promisee&#10;B)fulfilling all the obligations by the promisor&#10;C)performing all the promises, and fulfilling all the obligations by all the parties&#10;D)both (a) & (b)

Accepted Answer

The answer of Performance of a contract means&#10;A)fulfilling all the...

Question 21

Offer to perform is called&#10;A)attempted performance&#10;B)caveat emptor jus in rem&#10;C)jus in personam&#10;D)jus in rem caveat emptor

Accepted Answer

The answer of Offer to perform is called&#10;A)attempted performance&#10;B)caveat emptor...

Question 22

Which is not the essential of a valid tender?&#10;A)tender must be conditional&#10;B)tender must be made at a proper place&#10;C)tender must be for obligation&#10;D)tender must be made at proper time

Accepted Answer

The answer of Which is not the essential of a...

Question 23

An offer of performance is known as a/an&#10;A)offer&#10;B)proposal&#10;C)tender&#10;D)acceptance

Accepted Answer

The answer of An offer of performance is known as...

Question 24

The offer to perform the contract must be&#10;A)unconditional&#10;B)conditional&#10;C)rational&#10;D)provisional

Accepted Answer

The answer of The offer to perform the contract must...

Question 25

The promises forming consideration for each other are called&#10;A)reciprocal promises&#10;B)mutual promises&#10;C)independent promises&#10;D)none of the above

Accepted Answer

The answer of The promises forming consideration for each other...

Deck 2: Fundamentals of Contract Law: Acceptance, Validity, and Performance