1. The following case shows that intention to create legal relations exists even though the parties are family members.*

a. Merrit v Merrit

b. Balfour v Balfour

c. Chapple v Cooper

d. Kramer v Kramer

2. Razak wants to sell his house in Cameron Highlands to Kamal. They signed a contract without inspecting the house first and did not know that the house was totally damaged as a result of a land slide in that area months before they signed the contract. Is the contract valid?*

a. Yes, the contract is valid because they have signed the contract.

b. No, the contract is void because the contract is discharged by frustration.

c. Yes, the contract is valid because there is intention to create legal relation in a business agreement.

d. No, the contract is void because both parties are under a mistake as to the existence of the house.

3. Barney contracted to sell a very rare antique sword to Ted for RM5,000. However, without valid reason, Barney changed his mind and refused to sell the sword to Ted. Ted needs the sword for an exhibition of antiques which he is organizing and wants Barney to deliver the sword as agreed in the contract. Which remedy can Ted apply from the court?*

a. Injunction

b. Specific Performance

c. Damages

d. Quantum Meruit

4. Qayyed owes Adib RM 3,000. Aryan pays to Adib RM 1000 and Adib accepts them, in satisfaction of his claim on Qayyed. This payment is a discharge of the whole claim.*

a. s 66 Contracts Act 1950

b. s 64 Contracts Act 1950

c. s 69 Contracts Act 1950

d. s 63 Contracts Act 1950

5. Which of the contract below fall within the definition of "Contract by Inference"*

a. Azwan purchase hand sanitizer from 7 Eleven

b. Bibah purchase Nasi Kerabu in Bazaar Ramadhan

c. Christine purchase Pepsi from vending machine

d. Devi purchase face mask from Tesco

6. Rose offered to sell her shop to Lily at RM850,000. Lily agrees to buy the shop but asked Rose to paint the shop first and replace the tiles. Is there a valid contract?*

a. Yes, the contract is valid because Lily has accepted Rose's offer.

b. Yes, the contract is valid because the price is reasonable.

c. No, the contract is not valid because it is not in writing.

d. No, the contract is not valid because there was a counter-offer.

7. Which of the following is NOT true in relation to unilateral contracts?*

a. The offeror may withdraw the offer at anytime before acceptance takes places

b. Only one party makes a promise

c. The offeree need not communicate their intention to accept the offer

d. Acceptance requires full performance of the contract