Fall Semester 2025 | UNISA Assignment | PVL3702 – Law of Contract | Complete Answers, Case Analysis & Updated Study Guide | Due November/December 2025

Fall SemeSter 2025 | UNISa aSSIgNmeNt |
PVl3702 – law oF CoNtraCt | ComPlete aNSwerS,
CaSe aNalySIS & UPdated StUdy gUIde | dUe
NoVember/deCember 2025
Question 1:
Which of the following is a requirement for a valid contract?
A) Offer
B) Acceptance
C) Consideration
D) All of the above
Correct Option: D) All of the above
Rationale: For a contract to be valid, it must have an offer, acceptance of that offer, and
consideration (something of value exchanged).


Question 2:
A contract entered into by a minor is:
A) Void
B) Valid
C) Voidable
D) Enforceable
Correct Option: A) Void
Rationale: Generally, contracts entered into by minors are void because they lack the
legal capacity to contract.


Question 3:
Which of the following can terminate a contract?
A) Mutual agreement
B) Breach of contract
C) Frustration
D) All of the above
Correct Option: D) All of the above
Rationale: Contracts can be terminated through mutual agreement, breach, or
frustration of purpose.


Question 4:
What type of contract is formed when an offer is made and accepted immediately?
A) Unilateral contract

,B) Bilateral contract
C) Implied contract
D) Express contract
Correct Option: B) Bilateral contract
Rationale: A bilateral contract involves mutual promises made by both parties, typically
formed through immediate exchange of an offer and acceptance.


Question 5:
Consideration must be:
A) Adequate
B) Lawful
C) Past
D) All of the above
Correct Option: B) Lawful
Rationale: Consideration must be lawful for a contract to be valid; it does not need to
be adequate or past.
Question 6:
Which of the following statements regarding offer and acceptance is TRUE?
A) An offer can be revoked at any time before acceptance.
B) Acceptance must be communicated for a contract to be formed.
C) Silence can be considered acceptance.
D) An offer can become a contract without acceptance.
Correct Option: B) Acceptance must be communicated for a contract to be formed.
Rationale: For a contract to be legally binding, acceptance must be clear and
communicated to the offeror. An offer can indeed be revoked before acceptance, but
silence generally does not constitute acceptance.


Question 7:
A contract that contains terms that are not clear or ambiguous is considered:
A) Valid
B) Voidable
C) Unenforceable
D) Void
Correct Option: C) Unenforceable
Rationale: If the terms of a contract are ambiguous, the contract may be deemed
unenforceable because it lacks clarity necessary for enforcement.

,Question 8:
Which of the following types of contracts does not require consideration to be
valid?
A) Bilateral contracts
B) Unilateral contracts
C) Contracts made under seal
D) Oral contracts
Correct Option: C) Contracts made under seal
Rationale: Contracts made under seal (also known as "deeds") do not require
consideration to be valid, whereas most other contract types do.


Question 9:
A unilateral contract is formed when:
A) Two parties exchange promises.
B) One party makes a promise in exchange for an act by another party.
C) Both parties are bound to perform obligations.
D) None of the above.
Correct Option: B) One party makes a promise in exchange for an act by another
party.
Rationale: A unilateral contract involves one party promising something in return for the
act of another party, making it binding only when the act is performed.


Question 10:
Which of the following describes a condition precedent?
A) An event that must occur before a contract can be executed.
B) An obligation that must be fulfilled after a contract is formed.
C) A condition that makes a contract enforceable.
D) A statement of intention not creating legal relations.
Correct Option: A) An event that must occur before a contract can be executed.
Rationale: A condition precedent is a specific event that must happen before a contract
becomes effective.


Question 11:
In contract law, 'capacity' refers to:
A) The legal ability of a person to enter into a contract.
B) The extent of the obligations in a contract.

, C) The presence of consideration in a contract.
D) The clarity of terms in a contract.
Correct Option: A) The legal ability of a person to enter into a contract.
Rationale: Capacity refers to an individual's legal ability to enter into a contract, which
can be limited by age, mental state, or intoxication.


Question 12:
What is the primary purpose of the Statute of Frauds?
A) To make verbal contracts enforceable.
B) To require certain contracts to be in writing to be enforceable.
C) To eliminate all informal contracts.
D) To ensure fairness in contracts.
Correct Option: B) To require certain contracts to be in writing to be enforceable.
Rationale: The Statute of Frauds aims to prevent fraud and perjury by requiring certain
contracts to be in writing, including those involving significant sums or long-term
agreements.


Question 13:
Which of the following is NOT a valid defense to the enforcement of a contract?
A) Mistake of fact
B) Duress
C) Economic hardship
D) Misrepresentation
Correct Option: C) Economic hardship
Rationale: Economic hardship alone is not a valid defense against enforcement of a
contract, unlike mistakes, duress, or misrepresentation.


Question 14:
A contract that is void ab initio is:
A) Valid from the outset.
B) Valid until challenged.
C) Never valid.
D) Valid only under specific conditions.
Correct Option: C) Never valid.
Rationale: A contract that is void ab initio is treated as though it never existed and is
unenforceable from the beginning.