COMPLETE TEST BANK FOR_
The Legal and Regulatory Environment of Business
by Marisa Anne Pagnattaro, Daniel R. Cahoy
(2021)|| ALL CHAPTERS||VERIFIED
=========================================
,IMT C631
CHAPTER 1. Establishing Contractual Relationships
1. Which Of The Following Are Essential Features Of A Valid Simple Contract?
• Offer And Acceptance Only.
• Offer, Acceptance And Consideration Only.
• Offer, Acceptance, Privity, Certainty And Duress Only.
• Offer, Acceptance, Consideration, Intention To Create Legal Relations And
Certainty Of Terms.
2. Consideration, An Essential Element In The Formation Of A Valid Contract,
May Be Identified As:
• The Need For Fairness In The Contract.
• The Intention Of The Parties To Be Legally Bound.
• A Balance In The Terms Of The Agreement.
• The 'Bargain' Element Of A Contract.
3. Which Of The Following Is An Example Of Good Consideration?
• Exceeding An Existing Duty.
• Part-Payment Of A Debt.
• Performing An Existing Duty.
• Agreeing To Pay A Tenant For Improvements Already Made To A Rented Property.
4. Intention To Create Legal Relations Is Presumed In Which Of The Following Relationships:
i) Husband And Wife Living Together.
ii) Parties To A Commercial Contract.
iii) Husband And Wife Who Are Separated.
iv) Friends Who Are Part Of A Lottery Syndicate.
• All Of The Above.
• Ii Only.
• Ii, Iii And Iv.
• I, Ii And Iv.
Page 1 Of 59
,5. Which Of The Following Does NOT Have The Right To Enforce A Contract?
• The Parties To It.
• Third Parties To An Insurance Contract In Their Benefit.
• Third Parties To A Contract Concerning The Carriage Of Goods.
• A Party Subject To A Restrictive Covenant On Land.
6. Which Of The Following Cases Established The Doctrine Of Promissory Estoppel?
• Central London Property Trust V High Trees House Ltd.
• Combe V Combe.
• Foakes V Beer.
• Re Select Move.
7. How Would The Courts Deal With A Clause In A Contract For The Sale Of A Horse
Which Promised The Seller An Additional £5 Fee If The Horse Proved To Be Lucky?
• It Would Be Enforced In The Same Way As Any Other Clause.
• It Would Be Held As Illegal As A Gaming Contract.
• The Entire Contract Would Be Held As Unenforceable.
• The Clause Would Probably Be Held Unenforceable Due To Lack Of Certainty.
8. Which One Of The Following Is Incorrect? Consideration Must Be:
• Adequate But It Should Be Sufficient.
• Current And Not Be Past.
• Quantifiable (Having A Legal Value) But Not Whimsical.
• Exchanged After The Contract Has Taken Place.
9. Which One Of The Following Shows An Intention To Be Bound?
• Binding In 'Essence' Only.
• Binding In 'Honour' Only.
• This Is A 'Gentleman's Agreement'.
• A Signature On A Legal Document.
10. Which Of The Following Is NOT Necessary For An Enforceable Contract To Exist
When Supported By Past Consideration:
• The Act That Is The Subject Of The Contract Must Have Been Requested
By The Promisor.
• There Must Have Been In The Contemplation Of Both Parties That Payment Would
Have Been Made.
• A Written Contract Detailing The Expectation Of Payment Is In Existence
Before The Commencement Of The Act.
Page 2 Of 59
, • All The Other Elements Of A Valid Contract Must Have Existed.
CHAPTER 2. Competency Of Parties And Free Consent
1. The Indian Contract Act, 1872 Is Divided Into….. Chapters.
• 3
• 8
• 10
• 12
2. The Law Of Contract Is Nothing But
• A Child Of Commercial Dealing
• A Child Of Religion
• A Child Of Day To Day Politics
• A Child Of Economics
3. The Contract Act Came Into Force
• From 1 September 1872 But With Retrospective Effect
• Before 1 September 1872
• From 1 September 1872
• After 1 September 1872
4. The Contract Act Applies To
• Contracts Made Before 1 September 1872
• Contracts Made On 1 September 1868
• Contracts Made Before 1 September 1872 And To Be Enforced After 1
September 1872
• Contracts Made On And After 1 September 1872
5. An Indian Mercantile Law Is Based Upon
• Indian Culture
• British Culture
• England Law
• American Law
6. An Agreement Consists Of Reciprocal Promises Between At Least
• Four Parties
Page 3 Of 59
The Legal and Regulatory Environment of Business
by Marisa Anne Pagnattaro, Daniel R. Cahoy
(2021)|| ALL CHAPTERS||VERIFIED
=========================================
,IMT C631
CHAPTER 1. Establishing Contractual Relationships
1. Which Of The Following Are Essential Features Of A Valid Simple Contract?
• Offer And Acceptance Only.
• Offer, Acceptance And Consideration Only.
• Offer, Acceptance, Privity, Certainty And Duress Only.
• Offer, Acceptance, Consideration, Intention To Create Legal Relations And
Certainty Of Terms.
2. Consideration, An Essential Element In The Formation Of A Valid Contract,
May Be Identified As:
• The Need For Fairness In The Contract.
• The Intention Of The Parties To Be Legally Bound.
• A Balance In The Terms Of The Agreement.
• The 'Bargain' Element Of A Contract.
3. Which Of The Following Is An Example Of Good Consideration?
• Exceeding An Existing Duty.
• Part-Payment Of A Debt.
• Performing An Existing Duty.
• Agreeing To Pay A Tenant For Improvements Already Made To A Rented Property.
4. Intention To Create Legal Relations Is Presumed In Which Of The Following Relationships:
i) Husband And Wife Living Together.
ii) Parties To A Commercial Contract.
iii) Husband And Wife Who Are Separated.
iv) Friends Who Are Part Of A Lottery Syndicate.
• All Of The Above.
• Ii Only.
• Ii, Iii And Iv.
• I, Ii And Iv.
Page 1 Of 59
,5. Which Of The Following Does NOT Have The Right To Enforce A Contract?
• The Parties To It.
• Third Parties To An Insurance Contract In Their Benefit.
• Third Parties To A Contract Concerning The Carriage Of Goods.
• A Party Subject To A Restrictive Covenant On Land.
6. Which Of The Following Cases Established The Doctrine Of Promissory Estoppel?
• Central London Property Trust V High Trees House Ltd.
• Combe V Combe.
• Foakes V Beer.
• Re Select Move.
7. How Would The Courts Deal With A Clause In A Contract For The Sale Of A Horse
Which Promised The Seller An Additional £5 Fee If The Horse Proved To Be Lucky?
• It Would Be Enforced In The Same Way As Any Other Clause.
• It Would Be Held As Illegal As A Gaming Contract.
• The Entire Contract Would Be Held As Unenforceable.
• The Clause Would Probably Be Held Unenforceable Due To Lack Of Certainty.
8. Which One Of The Following Is Incorrect? Consideration Must Be:
• Adequate But It Should Be Sufficient.
• Current And Not Be Past.
• Quantifiable (Having A Legal Value) But Not Whimsical.
• Exchanged After The Contract Has Taken Place.
9. Which One Of The Following Shows An Intention To Be Bound?
• Binding In 'Essence' Only.
• Binding In 'Honour' Only.
• This Is A 'Gentleman's Agreement'.
• A Signature On A Legal Document.
10. Which Of The Following Is NOT Necessary For An Enforceable Contract To Exist
When Supported By Past Consideration:
• The Act That Is The Subject Of The Contract Must Have Been Requested
By The Promisor.
• There Must Have Been In The Contemplation Of Both Parties That Payment Would
Have Been Made.
• A Written Contract Detailing The Expectation Of Payment Is In Existence
Before The Commencement Of The Act.
Page 2 Of 59
, • All The Other Elements Of A Valid Contract Must Have Existed.
CHAPTER 2. Competency Of Parties And Free Consent
1. The Indian Contract Act, 1872 Is Divided Into….. Chapters.
• 3
• 8
• 10
• 12
2. The Law Of Contract Is Nothing But
• A Child Of Commercial Dealing
• A Child Of Religion
• A Child Of Day To Day Politics
• A Child Of Economics
3. The Contract Act Came Into Force
• From 1 September 1872 But With Retrospective Effect
• Before 1 September 1872
• From 1 September 1872
• After 1 September 1872
4. The Contract Act Applies To
• Contracts Made Before 1 September 1872
• Contracts Made On 1 September 1868
• Contracts Made Before 1 September 1872 And To Be Enforced After 1
September 1872
• Contracts Made On And After 1 September 1872
5. An Indian Mercantile Law Is Based Upon
• Indian Culture
• British Culture
• England Law
• American Law
6. An Agreement Consists Of Reciprocal Promises Between At Least
• Four Parties
Page 3 Of 59
