Contract Law Essentials Quiz

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Questions and Answers

What is a key requirement for a contract to be legally enforceable?

  • Vagueness in the contract terms
  • Clear offer and acceptance (correct)
  • Mutual trust between the parties
  • Verbal agreement without any proof

Which of the following is not an essential element of a contract?

  • Union of minds - consensus ad idem
  • Lawful agreement
  • Vague terms (correct)
  • Contractual capacity

What does an offeror do in the context of contract formation?

  • Indicates a willingness to contract (correct)
  • Accepts the contract terms proposed by the offeree
  • Signs the final contract document
  • Imposes mandatory conditions on the offeree

Why is writing sometimes important in contracts?

<p>For evidential purposes (A)</p> Signup and view all the answers

What indicates that there is an agreement in a contract?

<p>Presence of an offer and an acceptance (B)</p> Signup and view all the answers

Which element ensures that both parties are on the same page regarding a contract's subject matter?

<p>Consensus ad idem - union of minds (B)</p> Signup and view all the answers

What term refers to contractual statements that cannot grant an action for breach of contract?

<p>Puffing (A)</p> Signup and view all the answers

In the case of Petit v Abramson 1946 NPD 673, what did the court emphasize about statements made during contract negotiations?

<p>Statements can be mere puffing (B)</p> Signup and view all the answers

According to Small v Smith (1954) 35 ALR 434, when does a statement made during negotiation of a verbal contract become a term of the contract?

<p>If parties intended it to be a term (B)</p> Signup and view all the answers

How do judges typically view terms in written contracts?

<p>They are easily proven in court (C)</p> Signup and view all the answers

What principle do judges rely on when it comes to written contracts?

<p>Prima facie (B)</p> Signup and view all the answers

How can contractual terms be classified based on the text?

<p>Express and implied terms (A)</p> Signup and view all the answers

What was the reason for the court rejecting Bennett's argument for the commission?

<p>The court found the commission unreasonable (B)</p> Signup and view all the answers

Why was the contract in Scaurnel v Ostern 1941 AC 257 considered void for vagueness?

<p>The court found the time period for payment too long (A)</p> Signup and view all the answers

In Kantor v Knator 1962(3) SA 202, why did the court rule that the husband was not bound to buy furniture for his wife?

<p>The husband acquired unlimited discretion in the contract (D)</p> Signup and view all the answers

What type of contracts give unlimited discretion to the persons bound?

<p>Contracts with unlimited discretion (A)</p> Signup and view all the answers

Why was Bennett dismissed from his commission?

<p>His argument was rejected by the court (B)</p> Signup and view all the answers

What led to the court rejecting Bennett's claim for a fifth of the company's turnover?

<p>Unlimited discretion in his agreement (D)</p> Signup and view all the answers

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