Law Students’ Examination Preparation
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CONTRACTS (1–20)
1. What is the primary requirement for contract formation?
A. Written agreement
B. Offer, acceptance, and consideration
C. Court approval
D. Notarization
Answer: B. Offer, acceptance, and consideration
Rationale: A valid contract requires mutual assent and consideration.
2. What is an offer?
A. A promise creating power of acceptance
B. A completed contract
C. A court order
D. A gift
Answer: A. A promise creating power of acceptance
Rationale: An offer gives another party the ability to accept and form a contract.
3. What is acceptance?
,A. Agreement to the terms of an offer
B. Rejection of an offer
C. Counteroffer only
D. Withdrawal of an offer
Answer: A. Agreement to the terms of an offer
Rationale: Acceptance mirrors the offer terms.
4. What is consideration?
A. Bargained-for exchange
B. Moral obligation only
C. Past promise only
D. Gift intent
Answer: A. Bargained-for exchange
Rationale: Consideration is something of legal value exchanged.
5. Which of the following is NOT valid consideration?
A. Past consideration
B. Money
C. Services
D. Goods
Answer: A. Past consideration
Rationale: Past acts cannot support a new contract.
6. What is a unilateral contract?
A. Promise in exchange for performance
B. Promise for promise
C. Written agreement only
D. Illegal agreement
,Answer: A. Promise in exchange for performance
Rationale: Acceptance occurs through performance.
7. What is a bilateral contract?
A. Promise for promise
B. Performance only
C. Illegal agreement
D. Void agreement
Answer: A. Promise for promise
Rationale: Both parties exchange promises.
8. What makes a contract void?
A. Illegal subject matter
B. Written form
C. Consideration present
D. Offer accepted
Answer: A. Illegal subject matter
Rationale: Illegal contracts are unenforceable.
9. What is a voidable contract?
A. Valid but can be canceled by one party
B. Always illegal
C. Always enforceable
D. Requires court order
Answer: A. Valid but can be canceled by one party
Rationale: One party has the option to rescind.
, 10. What is capacity in contract law?
A. Legal ability to enter contracts
B. Emotional stability
C. Financial wealth
D. Physical ability
Answer: A. Legal ability to enter contracts
Rationale: Minors and incapacitated persons lack full capacity.
11. What is duress?
A. Forced agreement through threat
B. Mutual agreement
C. Gift exchange
D. Written contract
Answer: A. Forced agreement through threat
Rationale: Duress invalidates consent.
12. What is fraud in contract law?
A. Intentional misrepresentation
B. Honest mistake
C. Poor negotiation
D. Delay in performance
Answer: A. Intentional misrepresentation
Rationale: Fraud involves deceit.
13. What is a counteroffer?
A. Rejection of original offer with new terms
B. Acceptance