Contract Law & Digital Agreements: 2026
Guide
E-Signatures, Smart Contracts & Digital Compliance (100 Questions)
1. What are the essential elements required to form a valid contract?
A) Offer, Acceptance, Consideration, Capacity, and Legality
B) Email, Password, Username, and Signature
C) Money, Product, Receipt, and Warranty
D) Public announcement, Witness, and Document stamp
Correct Answer: A) Offer, Acceptance, Consideration, Capacity, and Legality
2. In contract law, "Consideration" refers to:
A) Thinking carefully about the deal
B) Something of value exchanged between the parties (e.g., money, goods, services)
C) The advice given by a lawyer
D) The time spent negotiating the contract
Correct Answer: B) Something of value exchanged between the parties (e.g., money,
goods, services)
3. What is the legal status of an "Electronic Signature" (e-signature) in most
jurisdictions?
A) It is not legally binding
B) It is generally as legally binding and enforceable as a handwritten signature, provided it
meets statutory requirements
C) It is only valid for emails
D) It is only valid if printed and signed by hand
Correct Answer: B) It is generally as legally binding and enforceable as a handwritten
signature, provided it meets statutory requirements
4. A "Clickwrap" agreement is enforceable because:
A) The user is forced to read it
B) It requires the user to perform a manifest act of assent (clicking "I Agree") before accessing
the service
C) It is always printed on paper
D) It is free
Correct Answer: B) It requires the user to perform a manifest act of assent (clicking "I
Agree") before accessing the service
,5. What is a "Browsewrap" agreement?
A) A contract that covers the browser's settings
B) A contract where the terms are linked at the bottom of the page and assent is presumed by
using the site
C) A contract that is mailed to the user
D) A contract that is signed by a lawyer
Correct Answer: B) A contract where the terms are linked at the bottom of the page and
assent is presumed by using the site
6. Are "Browsewrap" agreements typically considered as enforceable as "Clickwrap"?
A) Yes, they are identical
B) No, they are often harder to enforce because the user may not have had actual notice of the
terms
C) Yes, if the website is free
D) No, they are illegal
Correct Answer: B) No, they are often harder to enforce because the user may not have
had actual notice of the terms
7. "Smart Contracts" are:
A) Contracts signed by very smart people
B) Self-executing contracts with the terms of the agreement directly written into lines of code on
a blockchain
C) Contracts that can speak
D) A list of all the intelligent people in a company
Correct Answer: B) Self-executing contracts with the terms of the agreement directly
written into lines of code on a blockchain
8. What happens if a "Smart Contract" has a bug or error in its code?
A) The law automatically fixes it
B) It executes exactly as written, which may lead to unintended legal consequences or financial
loss
C) It stops working and gives an error message
D) The court changes the code
Correct Answer: B) It executes exactly as written, which may lead to unintended legal
consequences or financial loss
9. "Capacity" in contract law refers to:
A) The size of the office where the contract is signed
, B) The legal ability of a person to enter into a binding contract (e.g., being of legal age and
sound mind)
C) The amount of money in the contract
D) The number of pages in the contract
Correct Answer: B) The legal ability of a person to enter into a binding contract (e.g.,
being of legal age and sound mind)
10. What is "Unconscionability" in a contract?
A) A contract that is very long
B) A contract term so unfair or oppressive that a court refuses to enforce it
C) A contract that has no expiration date
D) A contract that is written in a foreign language
Correct Answer: B) A contract term so unfair or oppressive that a court refuses to
enforce it
11. An "Adhesion Contract" (take-it-or-leave-it) is:
A) A contract signed with glue
B) A contract drafted by one party (usually a company) with no room for negotiation by the other
party
C) A contract between two large companies
D) A contract for buying office supplies
Correct Answer: B) A contract drafted by one party (usually a company) with no room for
negotiation by the other party
12. "Breach of Contract" occurs when:
A) A party fails to perform their duties as agreed in the contract
B) A party decides they no longer like the contract
C) A party signs the contract twice
D) A party loses the original contract document
Correct Answer: A) A party fails to perform their duties as agreed in the contract
13. "Force Majeure" is a clause that:
A) Forces a party to work harder
B) Excuses a party from performing if an unforeseen, unavoidable event (e.g., natural disaster)
occurs
C) Allows the company to fire employees
D) Requires a party to pay for damages
Correct Answer: B) Excuses a party from performing if an unforeseen, unavoidable event
(e.g., natural disaster) occurs
Guide
E-Signatures, Smart Contracts & Digital Compliance (100 Questions)
1. What are the essential elements required to form a valid contract?
A) Offer, Acceptance, Consideration, Capacity, and Legality
B) Email, Password, Username, and Signature
C) Money, Product, Receipt, and Warranty
D) Public announcement, Witness, and Document stamp
Correct Answer: A) Offer, Acceptance, Consideration, Capacity, and Legality
2. In contract law, "Consideration" refers to:
A) Thinking carefully about the deal
B) Something of value exchanged between the parties (e.g., money, goods, services)
C) The advice given by a lawyer
D) The time spent negotiating the contract
Correct Answer: B) Something of value exchanged between the parties (e.g., money,
goods, services)
3. What is the legal status of an "Electronic Signature" (e-signature) in most
jurisdictions?
A) It is not legally binding
B) It is generally as legally binding and enforceable as a handwritten signature, provided it
meets statutory requirements
C) It is only valid for emails
D) It is only valid if printed and signed by hand
Correct Answer: B) It is generally as legally binding and enforceable as a handwritten
signature, provided it meets statutory requirements
4. A "Clickwrap" agreement is enforceable because:
A) The user is forced to read it
B) It requires the user to perform a manifest act of assent (clicking "I Agree") before accessing
the service
C) It is always printed on paper
D) It is free
Correct Answer: B) It requires the user to perform a manifest act of assent (clicking "I
Agree") before accessing the service
,5. What is a "Browsewrap" agreement?
A) A contract that covers the browser's settings
B) A contract where the terms are linked at the bottom of the page and assent is presumed by
using the site
C) A contract that is mailed to the user
D) A contract that is signed by a lawyer
Correct Answer: B) A contract where the terms are linked at the bottom of the page and
assent is presumed by using the site
6. Are "Browsewrap" agreements typically considered as enforceable as "Clickwrap"?
A) Yes, they are identical
B) No, they are often harder to enforce because the user may not have had actual notice of the
terms
C) Yes, if the website is free
D) No, they are illegal
Correct Answer: B) No, they are often harder to enforce because the user may not have
had actual notice of the terms
7. "Smart Contracts" are:
A) Contracts signed by very smart people
B) Self-executing contracts with the terms of the agreement directly written into lines of code on
a blockchain
C) Contracts that can speak
D) A list of all the intelligent people in a company
Correct Answer: B) Self-executing contracts with the terms of the agreement directly
written into lines of code on a blockchain
8. What happens if a "Smart Contract" has a bug or error in its code?
A) The law automatically fixes it
B) It executes exactly as written, which may lead to unintended legal consequences or financial
loss
C) It stops working and gives an error message
D) The court changes the code
Correct Answer: B) It executes exactly as written, which may lead to unintended legal
consequences or financial loss
9. "Capacity" in contract law refers to:
A) The size of the office where the contract is signed
, B) The legal ability of a person to enter into a binding contract (e.g., being of legal age and
sound mind)
C) The amount of money in the contract
D) The number of pages in the contract
Correct Answer: B) The legal ability of a person to enter into a binding contract (e.g.,
being of legal age and sound mind)
10. What is "Unconscionability" in a contract?
A) A contract that is very long
B) A contract term so unfair or oppressive that a court refuses to enforce it
C) A contract that has no expiration date
D) A contract that is written in a foreign language
Correct Answer: B) A contract term so unfair or oppressive that a court refuses to
enforce it
11. An "Adhesion Contract" (take-it-or-leave-it) is:
A) A contract signed with glue
B) A contract drafted by one party (usually a company) with no room for negotiation by the other
party
C) A contract between two large companies
D) A contract for buying office supplies
Correct Answer: B) A contract drafted by one party (usually a company) with no room for
negotiation by the other party
12. "Breach of Contract" occurs when:
A) A party fails to perform their duties as agreed in the contract
B) A party decides they no longer like the contract
C) A party signs the contract twice
D) A party loses the original contract document
Correct Answer: A) A party fails to perform their duties as agreed in the contract
13. "Force Majeure" is a clause that:
A) Forces a party to work harder
B) Excuses a party from performing if an unforeseen, unavoidable event (e.g., natural disaster)
occurs
C) Allows the company to fire employees
D) Requires a party to pay for damages
Correct Answer: B) Excuses a party from performing if an unforeseen, unavoidable event
(e.g., natural disaster) occurs
