COMPLETE TEST BANK
The Legal and Regulatory Environment of Business by Marisa Anne Pagnattaro, Daniel
R. Cahoy, Julie Manning Magid Associate Professor of Business Law, Peter J. Shedd
(2021) ||ALL CHAPTERS
19th Edition
, Legal and Regulatory Environment of Business
Chapter 1. Establishing contractual relationships
1. Which of the following are essential features of a valid simple contract?
• Offer and acceptance only.
• Offer, acceptance and consideration only.
• Offer, acceptance, privity, certainty and duress only.
• Offer, acceptance, consideration, intention to create legal relations and certainty
of terms.
2. Consideration, an essential element in the formation of a valid contract, may be
identified as:
• The need for fairness in the contract.
• The intention of the parties to be legally bound.
• A balance in the terms of the agreement.
• The 'bargain' element of a contract.
3. Which of the following is an example of good consideration?
• Exceeding an existing duty.
• Part-payment of a debt.
• Performing an existing duty.
• Agreeing to pay a tenant for improvements already made to a rented property.
4. Intention to create legal relations is presumed in which of the following relationships:
i) Husband and wife living together.
ii) Parties to a commercial contract.
iii) Husband and wife who are separated.
iv) Friends who are part of a lottery syndicate.
• All of the above.
• Ii only.
• Ii, iii and iv.
• I, ii and iv.
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, Legal and Regulatory Environment of Business
5. Which of the following does not have the right to enforce a contract?
• The parties to it.
• Third parties to an insurance contract in their benefit.
• Third parties to a contract concerning the carriage of goods.
• A party subject to a restrictive covenant on land.
6. Which of the following cases established the doctrine of promissory estoppel?
• Central london property trust v high trees house ltd.
• Combe v combe.
• Foakes v beer.
• Re select move.
7. How would the courts deal with a clause in a contract for the sale of a horse which
promised the seller an additional £5 fee if the horse proved to be lucky?
• It would be enforced in the same way as any other clause.
• It would be held as illegal as a gaming contract.
• The entire contract would be held as unenforceable.
• The clause would probably be held unenforceable due to lack of certainty.
8. Which one of the following is incorrect? Consideration must be:
• Adequate but it should be sufficient.
• Current and not be past.
• Quantifiable (having a legal value) but not whimsical.
• Exchanged after the contract has taken place.
9. Which one of the following shows an intention to be bound?
• Binding in 'essence' only.
• Binding in 'honour' only.
• This is a 'gentleman's agreement'.
• A signature on a legal document.
10. Which of the following is not necessary for an enforceable contract to exist when
supported by past consideration:
• The act that is the subject of the contract must have been requested by the
promisor.
• There must have been in the contemplation of both parties that payment would
Have been made.
• A written contract detailing the expectation of payment is in existence before the
commencement of the act.
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, Legal and Regulatory Environment of Business
• All the other elements of a valid contract must have existed.
Chapter 2. Competency of parties and free consent
1. The indian contract act, 1872 is divided into….. Chapters.
• 3
• 8
• 10
• 12
2. The law of contract is nothing but
• A child of commercial dealing
• A child of religion
• A child of day to day politics
• A child of economics
3. The contract act came into force
• From 1 september 1872 but with retrospective effect
• Before 1 september 1872
• From 1 september 1872
• After 1 september 1872
4. The contract act applies to
• Contracts made before 1 september 1872
• Contracts made on 1 september 1868
• Contracts made before 1 september 1872 and to be enforced after 1 september
1872
• Contracts made on and after 1 september 1872
5. An indian mercantile law is based upon
• Indian culture
• British culture
• England law
• American law
6. An agreement consists of reciprocal promises between at least
• Four parties
Page 3 of 59
The Legal and Regulatory Environment of Business by Marisa Anne Pagnattaro, Daniel
R. Cahoy, Julie Manning Magid Associate Professor of Business Law, Peter J. Shedd
(2021) ||ALL CHAPTERS
19th Edition
, Legal and Regulatory Environment of Business
Chapter 1. Establishing contractual relationships
1. Which of the following are essential features of a valid simple contract?
• Offer and acceptance only.
• Offer, acceptance and consideration only.
• Offer, acceptance, privity, certainty and duress only.
• Offer, acceptance, consideration, intention to create legal relations and certainty
of terms.
2. Consideration, an essential element in the formation of a valid contract, may be
identified as:
• The need for fairness in the contract.
• The intention of the parties to be legally bound.
• A balance in the terms of the agreement.
• The 'bargain' element of a contract.
3. Which of the following is an example of good consideration?
• Exceeding an existing duty.
• Part-payment of a debt.
• Performing an existing duty.
• Agreeing to pay a tenant for improvements already made to a rented property.
4. Intention to create legal relations is presumed in which of the following relationships:
i) Husband and wife living together.
ii) Parties to a commercial contract.
iii) Husband and wife who are separated.
iv) Friends who are part of a lottery syndicate.
• All of the above.
• Ii only.
• Ii, iii and iv.
• I, ii and iv.
Page 1 of 59
, Legal and Regulatory Environment of Business
5. Which of the following does not have the right to enforce a contract?
• The parties to it.
• Third parties to an insurance contract in their benefit.
• Third parties to a contract concerning the carriage of goods.
• A party subject to a restrictive covenant on land.
6. Which of the following cases established the doctrine of promissory estoppel?
• Central london property trust v high trees house ltd.
• Combe v combe.
• Foakes v beer.
• Re select move.
7. How would the courts deal with a clause in a contract for the sale of a horse which
promised the seller an additional £5 fee if the horse proved to be lucky?
• It would be enforced in the same way as any other clause.
• It would be held as illegal as a gaming contract.
• The entire contract would be held as unenforceable.
• The clause would probably be held unenforceable due to lack of certainty.
8. Which one of the following is incorrect? Consideration must be:
• Adequate but it should be sufficient.
• Current and not be past.
• Quantifiable (having a legal value) but not whimsical.
• Exchanged after the contract has taken place.
9. Which one of the following shows an intention to be bound?
• Binding in 'essence' only.
• Binding in 'honour' only.
• This is a 'gentleman's agreement'.
• A signature on a legal document.
10. Which of the following is not necessary for an enforceable contract to exist when
supported by past consideration:
• The act that is the subject of the contract must have been requested by the
promisor.
• There must have been in the contemplation of both parties that payment would
Have been made.
• A written contract detailing the expectation of payment is in existence before the
commencement of the act.
Page 2 of 59
, Legal and Regulatory Environment of Business
• All the other elements of a valid contract must have existed.
Chapter 2. Competency of parties and free consent
1. The indian contract act, 1872 is divided into….. Chapters.
• 3
• 8
• 10
• 12
2. The law of contract is nothing but
• A child of commercial dealing
• A child of religion
• A child of day to day politics
• A child of economics
3. The contract act came into force
• From 1 september 1872 but with retrospective effect
• Before 1 september 1872
• From 1 september 1872
• After 1 september 1872
4. The contract act applies to
• Contracts made before 1 september 1872
• Contracts made on 1 september 1868
• Contracts made before 1 september 1872 and to be enforced after 1 september
1872
• Contracts made on and after 1 september 1872
5. An indian mercantile law is based upon
• Indian culture
• British culture
• England law
• American law
6. An agreement consists of reciprocal promises between at least
• Four parties
Page 3 of 59
