PVL3702 LAW OF CONTRACT LEGAL
PRINCIPLES ASSESSMENT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ Agreement
Answer: 1. Offer
2. Acceptance
◉ Consideration
Answer: Both parties must receive something of value. Both fulfill
their promise. Evidence that they have an agreement.
◉ Consent to contract
Answer: The parties must enter the contract of their own free will.
There can be no duress or undue influence. No pressure. Full
information. Transparency..
◉ Capacity to contract
Answer: Ability. Legal right to enter a contract. Some people have no,
or a limited ability, to create binding contracts.
eg.minors - U18 (except for everyday purchases)
unsound mind
, directors acting ultra vires
◉ Intention to contract
Answer: The parties must have intended the agreement to be a
binding contract. Legal element.
With social/private agreements the assumption is that there was no
intention.
With business agreements the assumption is that there was
intention.
◉ Termination of an Offer
Answer: When is an offer over
1. Lapse of time (ran out of time to accept)
2. Rejection of the offer
3. Offer revoked (withdrawn - not available anymore)
◉ Termination of a Contract
Answer: When is a Contract over
1. Performance
2. By Agreement
3. Frustration
4. Breach
PRINCIPLES ASSESSMENT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ Agreement
Answer: 1. Offer
2. Acceptance
◉ Consideration
Answer: Both parties must receive something of value. Both fulfill
their promise. Evidence that they have an agreement.
◉ Consent to contract
Answer: The parties must enter the contract of their own free will.
There can be no duress or undue influence. No pressure. Full
information. Transparency..
◉ Capacity to contract
Answer: Ability. Legal right to enter a contract. Some people have no,
or a limited ability, to create binding contracts.
eg.minors - U18 (except for everyday purchases)
unsound mind
, directors acting ultra vires
◉ Intention to contract
Answer: The parties must have intended the agreement to be a
binding contract. Legal element.
With social/private agreements the assumption is that there was no
intention.
With business agreements the assumption is that there was
intention.
◉ Termination of an Offer
Answer: When is an offer over
1. Lapse of time (ran out of time to accept)
2. Rejection of the offer
3. Offer revoked (withdrawn - not available anymore)
◉ Termination of a Contract
Answer: When is a Contract over
1. Performance
2. By Agreement
3. Frustration
4. Breach
