Law of contract - SS2 Commerce Past Questions and Answers - page 1
What is the purpose of the law of contract?
To enforce promises made between parties
To regulate employment relationships
To govern the sale of goods
Which of the following is an essential element of a valid contract?
Consideration
Illegality
Duress
What is an offer in the context of contract law?
A mutual agreement between parties
An expression of willingness to enter into a contract
A legal requirement to create a contract
Which element of a valid contract ensures that the parties have the legal capacity to enter into an agreement?
Offer and acceptance
Capacity
Intention to create legal relations
What is the role of consent in a contract?
It ensures the legal purpose of the contract
It determines the consideration exchanged between parties
It establishes the mutual agreement of the parties
Explain the concept of consideration in a contract.
Consideration refers to something of value exchanged between parties, such as money, goods, or services. It is a fundamental element of a contract and signifies the benefit or detriment each party receives in the agreement.
Provide an example of a situation where a contract may be deemed void due to illegality.
An example could be a contract for the sale of illegal drugs. Such a contract is considered void because the purpose is illegal and against public policy.