1. Which of the following is an invitation to treat?

A. A "Buy 2 Free 1" promotion in a clothing store

B. An advertisement for reward on information relating to a kidnapping incident

C. A brochure for a spa service

D. A notice saying, "Mystery gift with every purchase over RM500"

2. Arif who is 65 years old, promised to pay for his sister's wedding at a hotel in Bali. He has now changed his mind. Is Arif under any legal obligation to fulfil his promise to his sister?

A. Yes, Arif's consent was freely given by him

B. Yes, there is a fiduciary relation between Arif and his sister

C. No, there was no intention to create legal relations between the parties

D. No, Arif has no capacity to make a contract as he is too old to do so

3. When parties to an agreement use post for communication, the Postal Rule applies. Under this rule,

A. an agreement is binding on the offeror when the offeror has posted the offer

B. an agreement is binding on the offeree when the offeree has received the offer

C. an agreement is binding on the offeror when the offeree has posted the acceptance

D. an agreement is binding on the offeree when the offeree has posted the acceptance

4. The case of Kepong Prospecting Ltd v A.E. Schmidt & Marjorie Schmidt [1968] 1 MLJ 170 laid down the principle that

A. A consideration is executed when a promise is made in exchange for the performance of an act

B. A consideration given in the past is valid consideration

C. A contract without consideration is voidable

D. A promise made by one party in return for a promise made by another party is known as an executory consideration

5. Which of the following is NOT TRUE about legal capacity to contract?

A. A minor is a person who has not reached the age of majority

B. A minor who has sold his property to another person may apply to the court for recovery of the property

C. A contract made by an unsound person is voidable

D. A person who is an adult and is of sound mind can be disqualified from entering into a contract

6. A minor may enter into a contract in certain situations. Which of the following are those exceptions?

i. An 11-year-old child purchased an insurance policy with his parent's permission

ii. A 14-year-old boy who wished to become a musician entered into a contract with a music tutor to learn how to play a piano

iii. A 16-year old girl ordered an expensive evening gown to wear at her birthday party

iv. A 17-year-old student received a scholarship to study medicine abroad

A. i, ii and iii

B. i, ii and iv

C. i, iii and iv

D. ii, iii and iv

7. Kennedy sold his factory to Sufri for RM5 million. Kennedy stated that his factory could produce 10,000 loafs of bread per day. Later Sufri discovered that the factory can only produce 9,000 loafs of bread per day. What is the legal position of the contract between Kennedy and Sufri?

A. The contract is voidable under undue influence

B. The contract is void under fraud

C. The contract is void under mistake

D. The contract is voidable under misrepresentation

8. Which of the following best describe a contract made under undue influence?

A. An old woman sells her bungalow worth RM1.2 million to her nephew for RM1 million

B. An illiterate man transfers a house to his 15-year-old daughter

C. A 19-year-old student borrows RM30,000 from a bank to pay for her university fees

D. A terminally ill person sells his brand-new car to his nurse for RM5,000

9. Bella made a contract to sell her land to Ramona for RM160,000. After the contract was concluded, they agreed to modify the price of the land and entered into a new agreement for the sale of the land at the price of RM150,000. The first contract between Bella and Ramona has been discharged by

A. rescission

B. frustration

C. agreement

D. breach of contract

10. Anak Seni is a dance group that has contracted to perform at Adiwara Club for 3 months. They promised that they will not perform at other venues during that period, but they broke the promise when they accepted an invitation to perform at Rafflesia Lounge for 1 week. What is the best remedy for Adiwara Club?

i. Terminate the contract with Anak Seni

ii. Claim for specific performance

iii. Apply for an injunction

iv. Sue for damages

A. i, ii and iii

B. i, iii and iv

C. ii, iii and iv

D. i, ii, iii and iv