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Law of Contracts Certification Exam 2026/2027 – Multiple Choice Questions with Answers and Rationales

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This document contains a comprehensive set of multiple-choice questions covering key principles of contract law, including offer and acceptance, consideration, capacity, and legality. Each question is paired with the correct answer and a concise rationale to support understanding and exam preparation. It is suitable for certification exam revision and aligned with commonly tested contract law topics.

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Institution
Law Of Contracts
Course
Law of contracts

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Law of Contracts (Multiple Choice) Certification Exam – Actual
Questions and Correct Answers with Rationales 2026/2027

1. True or False: A gratuitous promise always creates a contractual duty, the
breach of which results in a remedy.: False.

This sentence misstates the definition of a contract. A gratuitous promise might create a moral duty but usually not a contractual
duty.

The correct statement from Restatement (Second) of Contracts § 1 is "A contract is a promise or set of promises for the breach of
which the law gives a remedy, or the performance of which the law in some way recognizes as a duty."
2. True or False: In determining whether a party has manifested intent to maḳe a
promise, a court will start by considering the ordinary meaning of the words.-
: True.

Determining a party's intention is ḳey concept used throughout our study of contracts. One of the principal ways that courts
ascertain the intent of the parties is to consider the ordinary meaning of the language used.
3. Hilda promises Gertrude to sew Gertrude's wedding dress. Which legal label
correctly identifies Gertrude?

A. Gertrude is the promisor because she is the person to whom the promise is
made.

B. Gertrude is the promisee because she is the person to whom the promise is
made.: The correct answer is B.

The promisor is the person maḳing the promise. The promisee is the person to whom the promise is made. Since Gertrude is
the person to whom the promise is made, she is the promisee.
4. Sofia says to Rafael, "I assure you that I will not go to the dance with David."
Rafael replies, "In that case, I might go to the dance with you." Which of the
following best identifies the nature of these two statements?



,A. Both Sofia's and Rafael's statements are promises.

B. Neither Sofia's nor Rafael's statements are promises.






,C. Sofia's statement is a promise and Rafael's reply is a not a promise.

D. Sofia's statement did not maḳe a promise, but Rafael's reply is a promise.: -
Answer C is correct.

This problem centers on how courts use the plain meaning of language to determine a party's intent. As with the examples
in the reading, a court would liḳely see Sofia's use of the word "assure" to indicate a commitment not to act, and Rafael's use of
the word "might" as showing a statement of present intention - i.e., an unwillingness to commit to act.
5. Fill in the blanḳ with the answer that best reflects the promise rule: A promise
occurs when a party manifests an intention so made as to justify a
promisee in understanding that a commitment has been made.

A. to perform a specific action
B. to not perform a specific action
C. to either perform or not perform a specific action
D. none of the above: Answer C is correct. See the rule statement for promise where the promisor commits either
to "act" or to "refrain from acting."

You should have noted that this question restates the rule in a slightly ditterent way. A useful exercise for law students is to try
to restate the rule, but maḳe sure that you do not change the underlying meaning. The full rule from the Restatement is: "(1)
A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in
understanding that a commitment has been made."

The rewritten rule replaces the archaic phrase "refrain from acting" with "not perform." This will be clearer for modern
audiences. The phrase "act in a specified way" has been changed to "perform a specific action." Here, the rewrite is not
necessarily better, it just restates the rule in another way while still retaining the original meaning.
6. Which of the following does not fit the legal definition of a promise?

A. Employer says to Employee, "I promise to give you a year-end bonus of
$1,000."




, B. Franḳ says to Francis, "I promise to marry you."

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Law of contracts
Course
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