Read the questions below and click to choose the correct answer.

1. The meaning of the term 'capacity to contract' is the ability of a person to:

A. rescind a voidable contract

B. enter a necessary contract

C. enter a contractual relationship

D. avoid responsibilities under a contract.

2. Rihana says "Susan, I'm thinking of selling my car for RM 25,000." Susan says, "I'll give you RM 23,000 for the car" Rihana says "No." Later Susan calls Rihana and says, "I have RM 25,000 and want the car." In this case, Rihana:

A. must sell the car for RM 25,000 since the offer was accepted.

B. must sell the car for RM 25,000 since Susan has come up with the money.

C. does not have to sell the car because there was never a valid offer by her to sell.

D. does not have to sell the car to Susan because her offer was not accepted.

3. With respect to the formation of a contract, a counteroffer has the effect of:

A. constituting an acceptance.

B. completing the contractual exchange.

C. constituting an invitation to treat, not an offer.

D. destroying the original offer.

4. Under the postal rule, an acceptance is considered communicated and complete:

A. By verbal notification to the offeror.

B. On posting by the offeree.

C. When received and acknowledged by the offeror.

D. On receipt by the offeror.

5. Anggun Jewellers wrote a letter to Mila, "We have received an exceptionally fine Rolox watch which we will sell to you at a very favourable price." Which of the following best describes the nature of Anggun Jeweller's letter?

A. The letter lacks one of the essential elements of an offer

B.The letter is an offer to sell

C.The letter is an invitation to treat

D.The letter is an advertisement

6. The requirement that a party to a contract must intentionally exchange something of value in return of requiring the other party to do something is called:

A. Consent

B. Consideration

C. Intention to create legal relation

D. Contractual capacity

7. On 31st January, Shana, who lives in Kelantan, sent a letter offering to sell her 'Diary of a Wimpy Kid' book collection to Bhanu who lives in Perak. On 4th February, Bhanu post a letter to accept. However, on 3rd February afternoon Shana mailed a revocation to Bhanu. In this case:

A. Bhanu's acceptance is invalid because it came after the revocation.

B. Bhanu's acceptance is valid, and Shana's revocation too late.

C. Bhanu acceptance is invalid because Shana's revocation is valid.

D. Bhanu rejected the offer, so the offer is terminated.

8. Suppose now that instead of accepting Shana's offer, Bhanu sends her a letter rejecting the offer. This rejection becomes effective:

A. As soon as Bhanu composes it.

B. As soon as Bhanu mails it.

C. As soon as Shana receives it.

D. As soon as Shana replies to it.

9. In Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd [1952], when was a contract of sale considered completed?

A. When a customer takes the item from the shelf

B. When the item is placed on the shelf for sale by the pharmacist

C. At the time when the customer puts the item into the shopping basket

D. At the time of paying under the supervision of the registered pharmacist

10. Anuar offers to sell Zain one of his laptop computers sometimes next month. Zain accepts the offer. In this case, is there a valid contract between the two?

A. Yes, because there is offer and acceptance

B. No, because the terms are not certain

C. Yes, because the offer is communicated to Zain

D. No, because the acceptance is invalid

11. Alan buys a bicycle from Bike-a-Rama. Bike-a-Rama agrees to keep the bike for Alan until he picks it up. Bike-a-Rama is burned to the ground and the bike is destroyed. Who will bear the loss of the bicycle?

a. Alan only.

b. Bike-a-Rama only.

c. Alan and Bike-a-Rama.

d. None of the above.

12. Wawa purchases from Azrol, a seed dealer, some seeds described in the catalogue as Red Wave Petunias. When the seeds grow, they turn out to be yellow geraniums. Can Wawa successfully sue Azrol for breach of sale contract?

a. No, because Wawa did not reject the seeds once she had a chance to examine them.

b. No, because the seeds were of good quality and did grow into flowers.

c. Yes, because the seeds did not meet the description in the catalogue.

d. Yes, because the flowers grown from the seeds were not of merchantable quality.

13. The term 'title' as used in the context of sale of goods means:

a. the proper name used to identify the goods.

b. the right of ownership of the goods.

c. the right to use the goods.

d. the right of possession over the goods.

14. Where goods are identifiable and in a deliverable state:

a. title passes when the buyer pays for the goods.

b. title passes when the goods are picked up by the buyer.

c. title passes when a contract is made.

d. title passes when the buyer obtains possession.

15. Syukri bought his car under a hire-purchase contract with Bank Utara. Amin offered to buy Syukri's car and Syukri agrees to transfer the car to him. In this case, if Syukri fail to inform Amin of the existing loan on the car with Bank Utara, which implied term did he breached?

a. Right to enjoy quiet possession of the goods.

b. The goods must be fit for buyer's purpose.

c. The goods sold must be free from any encumbrances.

d. The seller must have a good title over the goods.