Quiz: Legal Aspect Of Business Contracts

10 Questions | By Samuelsj2 | Updated: Mar 21, 2022 | Attempts: 3462

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Quiz: Legal Aspect Of Business Contracts - Quiz

PRINCIPLES OF BUSINESS End of chapter quiz on legal aspect of business contracts.

Questions and Answers

1.

A contract may be defined as:
- A.
  
  Agreement between two persons who are not minors
- B.
  
  Offer by one party and a counter-offer by the other party
- C.
  
  Agreement made with intention to create legal relations
- D.
  
  Offer made in writing to the offeree
2.

What will be the legal consequences of an infant fraudulently obtaining money from a firm which he does not repay?
- A.
  
  The courts will insist that the infant repay at least half the sum of money.
- B.
  
  It becomes the responsibility of his parents to repay the debt.
- C.
  
  The plaintiffs cannot recover the money since a void contract exists.
- D.
  
  The matter can be settled quietly in a lawyer's office.
3.

David bought a plot of land from Tom for $20,000. Tom had threatened to expose a past misdeed of David's if he did not purchase the land. The contract is void because:
- A.
  
  There was no agreement
- B.
  
  There was no good faith
- C.
  
  There was no consideration
- D.
  
  There was no acceptance
4.

John offers to sell Henry a plot of land for $50,000. Henry writes to John saying he is willing to purchase the land for $40,000. Henry's offer is:
- A.
  
  A simple contract
- B.
  
  Consideration
- C.
  
  A specialty contract
- D.
  
  A counter offer
5.

A supermarket advertises goods for sale, this is:
- A.
  
  An invitation to treat
- B.
  
  An offer
- C.
  
  Communication of offer
- D.
  
  A consideration
6.

A specialty contract must be signed, delivered and ------------------
7.

An simple contract can be oral, written or ----------------------
8.

This term refers to termination of contract where a reasonable period of time has passed:
9.

The replacement of one contract for another is referred to as:
10.

A hire purchase is a ----------------------- contract.