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Contract Law Quiz: Test Your Knowledge

What is a company in legal terms?

Q1. Which of the following describes the Company accurately?

(a) A company is a partnership of persons

(b) A company is not a separate legal entity

(c) A company is a separate legal entity

(d) A company cannot own assets in its own name

Q2. What one of the statements about the tort of negligence is incorrect?

(a) To be able to claim the defendant must have a duty of care

(b) To be able to claim the defendant must have breached a duty of care

(c) To be able to claim under tort there must be a contractual relationship

(d) To be able to claim the breach must have caused the injury or loss

Q3. What is an injunction?

(a) It is a court order to force a party to carry out their obligations

(b) It is a court order to force a party to stop doing some act

(c) It is a court order providing for damages to the victim

(d) It is a court order imposing a fine

Q4. Which of the following is a common law remedy for a breach of a contract?

(a) An injunction

(b) Specific performance

(c) Damages or compensation

(d) rescission

Q5. One of the following is not a method by which an offer may be terminated. Which one is it?

(a) Withdrawal of the offer by the offeror

(b) Rejection of the offer by the offeree

(c) A counter offer made by the offeree

(d) A request for more information about the offer

Q6. Which one of the following describes Judicial precedent correctly?

(a) It is a judicial method used by judges to interpret Statutes

(b) It is a method by which law is made by Parliament

(c) It is a judicial rule which involves lowers courts being bound by the decision of the higher courts

(d) It is the system of law making by the Ministers in their departments

Q7. Which one of the following is an accurate statement about warranties?

(a) They are minor and less important terms

(b) They are representations

(c) They are additional requirements requested by the buyer

(d) They are vital or fundamental terms

Q8. When an employee at the payment counter at the supermarket takes your payment and enters details into their system what is he doing?

(a) He is making an offer

(b) He is making an acceptance

(c) He is negotiating or bargaining

(d) He is communicating an invitation to treat

Q9. Adam agrees to sell his second-hand BMW car to Ben for the price of $10,000 although the market price is $250,000. What is the amount of $10,000 considered as under contract law?

(a) $10,000 is adequate consideration

(b) $10,000 is sufficient consideration

(c) $10,000 is a fair price

(d) $10,000 is a reasonable price

Q10. A promise by a husband that he would bring his wife for a holiday if she helps her with his part of the house work is not a legally binding promise because____________.

(a) It is not in writing

(b) There is no intention to be legally bound

(c) There is no consideration

(d) There is no agreement

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