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||
COMPLETE GUIDE
19th Edition
,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.
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.
, 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
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||
COMPLETE GUIDE
19th Edition
,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.
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.
, 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
