Question 1

A contract is:

A mutual understanding between two parties.

A legally binding agreement.

A verbal understanding between two parties

A written agreement between two parties or more.

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2 -Which of the following statements is incorrect?

There is no difference in law between an offer and advertisement.

An offer is a set of terms by which the offeror is willing to be bound.

In bilateral contracts the parties exchange promises.

Acceptance in contract may take effect through conduct and need not necessarily be in oral communication.

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3 -Where a contract does not stipulate an expiry date, it will remain open:

Forever, until accepted by the offeree.

Until expressly revoked by the offeror.

Until a counter-offer is made.

For a reasonable time, after which it will automatically expire.

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4 -Which of the following is NOT effective communication of acceptance of an offer?

Deviation (which is a quicker form) from the method stipulated in the offer

Silence

Conduct of the contract

Outward evidence of the offeree's intention to accept

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5- In relation to minors, which of the following types of contracts is not voidable but binds the minor?

Contracts involving the sale of shares

Leasing property

Contracts of partnership

A contract for necessity

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6- Which of the following is NOT a type of mistake in contract law?

Common mistake

Unilateral mistake

Bilateral mistake

Mutual mistake

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7 - Which of the following elements is incorrect in establishing an actionable misrepresentation?

A statement of material fact that induces the other party into the contract.

A false representation.

The innocent party did or did not believe the statement to be true.

The representation induced the party into the contract.

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8- Which of the following is NOT a type of misrepresentation?

Fraudulent misrepresentation Innocent misrepresentation

Criminal misrepresentation

Negligent misrepresentation

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9 - Where undue influence has been used to form the contract, the effect is that the contract is:

Valid contract that binds the parties

Void

Illegal

Voidable

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10- When a contract has been agreed on the basis of a fraudulent misrepresentation, which of the following remedies is/are available?

Both damages and rescission

Damages only

An injunction only

Rescission only

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Question 2 Explain the Mirror Image Rule. What is the effect of introducing a new term or amendment to the terms of the offer when the offeree purports to accept?

Question 3 What is the essential difference between a unilateral mistake and a bilateral mistake?

Question 4 What is the consequence if the contract is voidable?

Question 5 What is the requirements in order for a defense (exception) of promissory estoppel to operate?

Question 6 What must be shown to establish a claim based on misrepresentation of facts in a contract?