CONTRACT LAW EXAM VERSION A, B, C, D, E
AND 2 PRACTICE TESTS QUESTION BANK
LATEST UPDATE THIS YEAR COMPLETE 700
QUESTIONS AND CORRECT DETAILED
ANSWERS - JUST RELEASED
CONTRACT LAW VERSION A
What is a unilateral contract? - ANSWER ✔✔- One party promises to do something in
return for an act.
Acceptance happens when the offeree does the act.
Only the party who makes the promise to give something is bound. The exchange of
consideration is the promise to pay given for the act.
What are the requirements for an agreement? - ANSWER ✔✔- Offer and an
Acceptance are required to make an agreement, the first element of a contract. This
applied to both bilateral and unilateral contracts.
What are the two types of offer? - ANSWER ✔✔- Bilateral offer- an offer to exchange
one thing for another.
Unilateral offer- promise to do something in return for another party performing an act.
What are the requirements for a valid offer? - ANSWER ✔✔- Clear and certain with the
intention to be bound
What is an invitation to treat? - ANSWER ✔✔- An invitation to treat is the first step in
negotiations. It is inviting the other party to make an offer.
1|Page
,It is not an offer!!!
When is an advert not an invitation to treat? - ANSWER ✔✔- When it is in fact a
unilateral offer. You need to check the facts: is it a promise to pay or give money in
return for an act?
When is an auction not an invitation to treat? - ANSWER ✔✔- When it is an action
without reserve. This is when an item will definitely be sold, regardless of price, usually
to the highest bidder. This makes a unilateral contract
What is a contract? - ANSWER ✔✔- A contract is an agreement between two or more
parties which is binding in law. This means that the agreement creates rights and
obligations which the courts may enforce.
What is a deed? - ANSWER ✔✔- A type of contract.
They must be "signed, sealed, delivered" to be valid.
Used when no consideration is being exchanged.
What is a simple contract? - ANSWER ✔✔- A type of contract. Every other contract that
is not a deed.
What is executorty consideration? - ANSWER ✔✔- Also known as future consideration.
Where there is a promise to do something in the future. Both parties have not yet
"executed" their promise.
What is executed consideration? - ANSWER ✔✔- An act performed in exchange for a
promise. One party makes a promise and the other performs an act as consideration for
that promise.
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,What is a bilateral contract? - ANSWER ✔✔- An agreement between two parties in
which each side agrees to fulfil their side of the bargain.
When is an invitation to tender not an invitation to treat? - ANSWER ✔✔- 1) where the
tender has an undertaking to accept the highest bidder.
2) the tender is made to a specific number of parties and contains clear conditions
setting when and how the bids should be subitted.
How can an offer be terminated? - ANSWER ✔✔- 1- Acceptance
2- Rejection
3-Lapse
4-Revocation
What is the "battle of the forms"? - ANSWER ✔✔- If you try and accept an offer on new
terms, this creates a counteroffer. This counteroffer ends the original offer. In effect, you
reject the original offer. Instead, the new terms proposed become the new offer which
can be accepted or rejected by the original offer. If they now propose different terms,
this again becomes another counteroffer.
How does an offer lapse? - ANSWER ✔✔- 1- time passing
2- death of a party
3- condition of acceptance not satisfied
How can a bilateral offer be revoked? - ANSWER ✔✔- A bilateral offer can be revokes
at any time before acceptance, provided that the revocation reaches the offeree before
they accept it must actually reach/be communicated to the offeree.
How can an unilateral offer be revoked? - ANSWER ✔✔- Prior to the completion of the
act which constitutes acceptance. Again, it must be communicated to the person to
whom the offer is made if the unilateral offer is made to one person.
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, What are the requirement for valid acceptance? - ANSWER ✔✔- 1- Acceptance made
in response to offfer
2- Acceptance unqualified
3- Acceptance communicated to the offeror
4- Silence cannot amount acceptance
What are the exceptions to the rule that acceptance must be communicated? -
ANSWER ✔✔- 1- unilateral contracts
2-acceptance by conduct
3-postal rule
When is ICLR presumed to exist and presumed not to? - ANSWER ✔✔- Presumed to
exist in commercial agreements.
Not presumed to exist in domestic agreements and adverts.
What are the rules for capacity of minors, intoxicated and vulnerable people and
illegality? - ANSWER ✔✔- Minors- Void;unless necessaries or benefit exception applies
Mental incapacitated- Voidable;unless necessaries exception applies or other party
doesnt know
Intoxication- Voidable; unless necessaries exception applies or other party doesnt know
theyre drunk.
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AND 2 PRACTICE TESTS QUESTION BANK
LATEST UPDATE THIS YEAR COMPLETE 700
QUESTIONS AND CORRECT DETAILED
ANSWERS - JUST RELEASED
CONTRACT LAW VERSION A
What is a unilateral contract? - ANSWER ✔✔- One party promises to do something in
return for an act.
Acceptance happens when the offeree does the act.
Only the party who makes the promise to give something is bound. The exchange of
consideration is the promise to pay given for the act.
What are the requirements for an agreement? - ANSWER ✔✔- Offer and an
Acceptance are required to make an agreement, the first element of a contract. This
applied to both bilateral and unilateral contracts.
What are the two types of offer? - ANSWER ✔✔- Bilateral offer- an offer to exchange
one thing for another.
Unilateral offer- promise to do something in return for another party performing an act.
What are the requirements for a valid offer? - ANSWER ✔✔- Clear and certain with the
intention to be bound
What is an invitation to treat? - ANSWER ✔✔- An invitation to treat is the first step in
negotiations. It is inviting the other party to make an offer.
1|Page
,It is not an offer!!!
When is an advert not an invitation to treat? - ANSWER ✔✔- When it is in fact a
unilateral offer. You need to check the facts: is it a promise to pay or give money in
return for an act?
When is an auction not an invitation to treat? - ANSWER ✔✔- When it is an action
without reserve. This is when an item will definitely be sold, regardless of price, usually
to the highest bidder. This makes a unilateral contract
What is a contract? - ANSWER ✔✔- A contract is an agreement between two or more
parties which is binding in law. This means that the agreement creates rights and
obligations which the courts may enforce.
What is a deed? - ANSWER ✔✔- A type of contract.
They must be "signed, sealed, delivered" to be valid.
Used when no consideration is being exchanged.
What is a simple contract? - ANSWER ✔✔- A type of contract. Every other contract that
is not a deed.
What is executorty consideration? - ANSWER ✔✔- Also known as future consideration.
Where there is a promise to do something in the future. Both parties have not yet
"executed" their promise.
What is executed consideration? - ANSWER ✔✔- An act performed in exchange for a
promise. One party makes a promise and the other performs an act as consideration for
that promise.
2|Page
,What is a bilateral contract? - ANSWER ✔✔- An agreement between two parties in
which each side agrees to fulfil their side of the bargain.
When is an invitation to tender not an invitation to treat? - ANSWER ✔✔- 1) where the
tender has an undertaking to accept the highest bidder.
2) the tender is made to a specific number of parties and contains clear conditions
setting when and how the bids should be subitted.
How can an offer be terminated? - ANSWER ✔✔- 1- Acceptance
2- Rejection
3-Lapse
4-Revocation
What is the "battle of the forms"? - ANSWER ✔✔- If you try and accept an offer on new
terms, this creates a counteroffer. This counteroffer ends the original offer. In effect, you
reject the original offer. Instead, the new terms proposed become the new offer which
can be accepted or rejected by the original offer. If they now propose different terms,
this again becomes another counteroffer.
How does an offer lapse? - ANSWER ✔✔- 1- time passing
2- death of a party
3- condition of acceptance not satisfied
How can a bilateral offer be revoked? - ANSWER ✔✔- A bilateral offer can be revokes
at any time before acceptance, provided that the revocation reaches the offeree before
they accept it must actually reach/be communicated to the offeree.
How can an unilateral offer be revoked? - ANSWER ✔✔- Prior to the completion of the
act which constitutes acceptance. Again, it must be communicated to the person to
whom the offer is made if the unilateral offer is made to one person.
3|Page
, What are the requirement for valid acceptance? - ANSWER ✔✔- 1- Acceptance made
in response to offfer
2- Acceptance unqualified
3- Acceptance communicated to the offeror
4- Silence cannot amount acceptance
What are the exceptions to the rule that acceptance must be communicated? -
ANSWER ✔✔- 1- unilateral contracts
2-acceptance by conduct
3-postal rule
When is ICLR presumed to exist and presumed not to? - ANSWER ✔✔- Presumed to
exist in commercial agreements.
Not presumed to exist in domestic agreements and adverts.
What are the rules for capacity of minors, intoxicated and vulnerable people and
illegality? - ANSWER ✔✔- Minors- Void;unless necessaries or benefit exception applies
Mental incapacitated- Voidable;unless necessaries exception applies or other party
doesnt know
Intoxication- Voidable; unless necessaries exception applies or other party doesnt know
theyre drunk.
4|Page
