Contract Law Quiz

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Questions and Answers

Which statement accurately describes the difference between legislation and custom?

Legislation is unwritten, while custom is formal and written.
Both legislation and custom are written laws.
Custom is enforced by government, while legislation is not.
Legislation is created by a legislative body, whereas custom is based on tradition. (correct)

A magistrate has the authority to interpret and apply the law in the same manner as a judge.

False (B)

What is the primary aim of criminal proceedings?

To punish the offender and protect society.

Legislation is a formal set of rules created by a __________.

legislative body Signup and view all the answers

Match the following terms to their correct descriptions:

Legislation = Formal laws created by a legislative body Custom = Unwritten rules based on tradition Judge = Presides over a court of law Magistrate = Handles minor offenses and preliminary hearings Signup and view all the answers

Which of the following is NOT an essential element of a sale agreement?

Witness Signatures (A) Signup and view all the answers

Capacity refers to the requirement that both parties must be of legal age and sound mind to enter into a contract.

True (A) Signup and view all the answers

What is meant by 'Consideration' in a sale agreement?

The exchange of value, typically money for goods or services. Signup and view all the answers

For a sale agreement to be valid, the subject matter must be ________ and not violate any laws or public policy.

legal Signup and view all the answers

Match the following elements of a sale agreement with their descriptions:

Offer and Acceptance = Clear agreement between parties Consideration = Exchange of value Capacity = Legally competent individuals Legality = Adherence to laws and public policy Signup and view all the answers

Which of the following is NOT a requirement for a valid contract?

Secrecy of Terms (B) Signup and view all the answers

A contract can be valid even if one party is intoxicated at the time of signing.

False (B) Signup and view all the answers

What term describes the exchange of value in a contract?

Consideration Signup and view all the answers

For a contract to be legal, its purpose must not violate any _____ or public policies.

laws Signup and view all the answers

Match the following contract requirements with their descriptions:

Offer and Acceptance = Mutual agreement between parties Capacity to Contract = Legal ability to enter a contract Lawful Purpose = Contract must comply with laws Consideration = Exchange of value or promise Signup and view all the answers

What is the primary goal of an appeal?

To review and challenge a lower court's decision (C) Signup and view all the answers

Obiter dictum is a binding precedent on future courts.

False (B) Signup and view all the answers

What does ratio decidendi refer to in a court ruling?

The legal principle or rule that forms the basis of a court's decision. Signup and view all the answers

A _____ is a process where a higher court examines a lower court's ruling.

appeal Signup and view all the answers

Which of the following describes a void contract?

A contract that cannot be enforced by either party. (A) Signup and view all the answers

A valid contract must include all essential elements to be legally binding.

True (A) Signup and view all the answers

What are four sources of authority in an agency relationship?

Express authority, implied authority, apparent authority, and statutory authority. Signup and view all the answers

A __________ contract may be enforced unless one party chooses to void it based on certain conditions.

voidable Signup and view all the answers

Match the following elements to their description:

Offer = Proposal made by one party to another Acceptance = Agreement to the terms of the offer Consideration = Something of value exchanged between parties Contractual capacity = The legal ability to enter into a contract Signup and view all the answers

All agreements made between parties automatically create a legal contract.

False (B) Signup and view all the answers

What is meant by 'Capacity to Contract'?

The legal ability of parties to enter into a contract, including being of sound mind and legal age. Signup and view all the answers

For a contract to be valid, all parties must intend to create _____ relations.

legal Signup and view all the answers

Match the elements of a valid contract with their descriptions:

Offer and Acceptance = Clear mutual agreement between parties Intent to Create Legal Relations = Parties intend for the agreement to have legal implications Capacity to Contract = Parties have the legal ability to enter into an agreement Lawful Purpose = The contract is for a legal aim and not illegal activities Signup and view all the answers

Which type of authority is based on a third party's belief that the agent has authority?

Apparent Authority (B) Signup and view all the answers

Inherent authority requires explicit permission from the principal.

False (B) Signup and view all the answers

What is the process called when a principal approves an action taken by an agent without explicit authority?

Ratification Signup and view all the answers

Apparent authority is based on the principal's actions or representations that lead a _______ to reasonably believe the agent has authority.

third party Signup and view all the answers

Match the following sources of authority with their descriptions:

Actual Authority = Express or implied authority given by the principal Apparent Authority = Authority a third party believes the agent has based on principal's representations Inherent Authority = Authority inherent in the agent's position Ratification = Approval of an action taken by an agent without explicit authority Signup and view all the answers

What type of contract is considered invalid from the beginning due to its illegal nature?

Void Contract (B) Signup and view all the answers

A voidable contract can be enforced unless one party chooses to cancel it.

True (A) Signup and view all the answers

Give an example of a valid contract.

A contract for the purchase of a car between two parties of legal age agreeing on terms. Signup and view all the answers

A contract that is initially valid but can be set aside due to issues like fraud is called a __________ contract.

voidable Signup and view all the answers

Match the following types of contracts with their descriptions:

Valid Contract = Legally binding agreement with enforceable terms Void Contract = Agreement that is invalid from the beginning Voidable Contract = Initial valid contract that can be canceled Illegal Contract = Contract for a purpose that violates the law Signup and view all the answers

Which of the following is NOT considered a source of South African law?

Popular Opinion (C) Signup and view all the answers

The Constitution of South Africa is subordinate to legislation.

False (B) Signup and view all the answers

What type of law develops through judicial decisions and precedents in South Africa?

Common Law Signup and view all the answers

Customary law is based on __________ customs and traditions.

indigenous Signup and view all the answers

Match the following sources of South African law with their descriptions:

Legislation = Acts of Parliament and regulations Common Law = Judge-made law and precedents Customary Law = Law based on traditions Constitution = The supreme law governing all other laws Signup and view all the answers

Flashcards

Legislation

Formal laws made by a legislative body.

Custom

Unwritten, traditional rules widely accepted.