Cuestionario: Fundamentals of Contract Formation and Validity — 8 preguntas

1. What is a key feature of the privity of contract principle?

A. All third parties can enforce the contract

B. Only parties involved in the contract have rights and obligations

C. Contracts must always be in writing to be enforceable

D. Privity allows for the transfer of rights without consent

Answer: (B)

Explicación

Privity of contract states that only the parties involved in a contract have rights and obligations, which is fundamental to understanding enforceability and rights.

2. What does misrepresentation in contract law primarily involve?

A. A false statement of fact that induces the other party to enter the contract

B. A statement of law that influences the contract decision

C. A change of circumstances not disclosed to the other party

D. A statement of opinion that affects the contract validity

Answer: (A)

Explicación

Misrepresentation involves a false statement of fact that induces the other party to enter the contract, as defined in the source.

3. Which statement matches the topic "Economic duress, undue influence, and contract voidability"?

A. Once the contract : The stage after a contract is made when it becomes binding on the parties, requiring them to perform their agreed obligations without escape except in limited situations

B. Contract is formed : The point at which the contract is made, marking the agreement between parties that triggers binding and enforceable obligations

C. A contract becomes enforceable, allowing a party to sue for breach if the other fails to perform as agreed

D. Economic duress : A form of coercion where one party forces another to agree to contract amendments by applying unjustified economic pressure or threats, invalidating genuine consent

Answer: (D)

Explicación

This statement comes directly from the course section dedicated to this topic: Economic duress : A form of coercion where one party forces another to agree to contract amendments by applying unjustified economic pressure or threats, invalidating genuine consent.

4. What is a key property of acceptance in contract formation?

A. Acceptance is only valid if written

B. Acceptance must be unqualified

C. Acceptance must be oral

D. Acceptance can be qualified with conditions

Answer: (B)

Explicación

Acceptance must be unqualified and can be expressed orally, in writing, by email, or conduct, as stated in the source.

5. Which statement matches the topic "Intention to create legal relations and contractual capacity"?

A. Contract is formed : The point at which the contract is made, marking the agreement between parties that triggers binding and enforceable obligations

B. Once the contract : The stage after a contract is made when it becomes binding on the parties, requiring them to perform their agreed obligations without escape except in limited situations

C. A contract becomes enforceable, allowing a party to sue for breach if the other fails to perform as agreed

D. For example : The case was interesting, decided in Hong Kong, back in the ’70 when it was still under the domination of Britain → the case was about 2 companies, A and B

Answer: (D)

Explicación

This statement comes directly from the course section dedicated to this topic: For example : The case was interesting, decided in Hong Kong, back in the ’70 when it was still under the domination of Britain → the case was about 2 companies, A and B.

6. What is the effect of promissory estoppel on a party who makes a promise without consideration?

A. It automatically makes the promise legally binding

B. It prevents the party from reneging if the other party would suffer loss

C. It requires consideration to be valid

D. It allows the party to renege without consequences

Answer: (B)

Explicación

Promissory estoppel can prevent a party from reneging on a promise even without consideration if the other party would suffer loss relying on it.

7. How does a counter-offer differ from the original offer in contract formation?

A. A counter-offer is the final step before contract signing

B. A counter-offer is an informal expression of interest

C. A counter-offer rejects the original offer and proposes new terms

D. A counter-offer accepts the original offer with modifications

Answer: (C)

Explicación

A counter-offer rejects the original offer and proposes new terms, preventing contract formation until the new offer is accepted, unlike an acceptance which would create a binding contract.

8. What is the key characteristic of the point at which a contract is formed?

A. It occurs after the obligations are performed

B. It is when the contract becomes binding and enforceable

C. It marks the beginning of negotiations

D. It is when the parties sign the document

Answer: (B)

Explicación

The contract is formed at the point when it is made, which marks the agreement that triggers binding and enforceable obligations.