Law of contract - SS2 Commerce Past Questions and Answers - page 1

1

What is the purpose of the law of contract?

 

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A

To enforce promises made between parties

 

B

To regulate employment relationships

 

C

To govern the sale of goods

 

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2

Which of the following is an essential element of a valid contract?

 

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A

Consideration

B

Illegality 

C

Duress

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3

What is an offer in the context of contract law?

 

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A

A mutual agreement between parties

 

B

An expression of willingness to enter into a contract

 

C

A legal requirement to create a contract

 

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4

Which element of a valid contract ensures that the parties have the legal capacity to enter into an agreement?

 

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A

Offer and acceptance

 

B

Capacity

C

Intention to create legal relations

 

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5

What is the role of consent in a contract?

 

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A

It ensures the legal purpose of the contract

 

B

 It determines the consideration exchanged between parties

 

C

It establishes the mutual agreement of the parties

 

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6

Explain the concept of consideration in a contract.

 

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7

Provide an example of a situation where a contract may be deemed void due to illegality.

 

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