JURI 530
Contracts Law
KNOWLEDGE TEST 1
©LU 2024/2025
,1. Question:
Which of the following is necessary for an agreement to be legally
enforceable as a contract?
a) Written documentation
b) Consideration
c) Witnesses
d) Certification by a legal authority
Answer: b) Consideration
Rationale: A valid contract requires mutual consideration i.e.,
something of value must be exchanged. Written documentation
and witnesses are not necessary elements for all contracts.
2. Question:
In which of the following situations is a contract likely to be
deemed void due to a lack of capacity?
a) A minor purchases a luxury car
b) An adult with a minor learning disability enters into a contractual
agreement
c) A person buys a house while intoxicated but SOBER at the time
of signing
©LU 2024/2025
, d) An elderly person enters into a contract without any diagnosis of
mental incapacity
Answer: a) A minor purchases a luxury car
Rationale: Generally, minors lack the legal capacity to enter into
binding contracts, except for necessities.
3. Question:
When one party deceives another party into entering into a
contract, it can be termed as:
a) Consent
b) Undue influence
c) Duress
d) Fraud
Answer: d) Fraud
Rationale: Fraud involves intentional deception to secure unfair
gain and can render a contract voidable by the deceived party.
4. Question:
Which one of the following statements best describes a "unilateral
contract"?
©LU 2024/2025
Contracts Law
KNOWLEDGE TEST 1
©LU 2024/2025
,1. Question:
Which of the following is necessary for an agreement to be legally
enforceable as a contract?
a) Written documentation
b) Consideration
c) Witnesses
d) Certification by a legal authority
Answer: b) Consideration
Rationale: A valid contract requires mutual consideration i.e.,
something of value must be exchanged. Written documentation
and witnesses are not necessary elements for all contracts.
2. Question:
In which of the following situations is a contract likely to be
deemed void due to a lack of capacity?
a) A minor purchases a luxury car
b) An adult with a minor learning disability enters into a contractual
agreement
c) A person buys a house while intoxicated but SOBER at the time
of signing
©LU 2024/2025
, d) An elderly person enters into a contract without any diagnosis of
mental incapacity
Answer: a) A minor purchases a luxury car
Rationale: Generally, minors lack the legal capacity to enter into
binding contracts, except for necessities.
3. Question:
When one party deceives another party into entering into a
contract, it can be termed as:
a) Consent
b) Undue influence
c) Duress
d) Fraud
Answer: d) Fraud
Rationale: Fraud involves intentional deception to secure unfair
gain and can render a contract voidable by the deceived party.
4. Question:
Which one of the following statements best describes a "unilateral
contract"?
©LU 2024/2025
