EXERCISE Law of Contract

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Tick the appropriate answer

1. An oral contract is:

A. Not enforceable in law.

B. Enforceable in law.
C. Not valid in law.
D. All of above.

2. An agreement made by Jenny, the mother of Jane, her daughter, to buy her a car and duly
registered in her name out of her natural love and affection for her is:

A. Enforceable by law.
B. Not enforceable by law.
C. Enforceable if made in writing.
D. None of above.

3. A person who accepts an offer is known as:

A. An offeree.
B. An offeror.
C. A promisor.
D. None of above.

4. A contract must have the elements of:

A. Consideration.
B. Intention to create legal relation.
C. Acceptance.
D. All of above.

5. Which case best described an advertisement is an offer?

A. Hyde v Wrench.
B. Carlill v Carbolic Smoke Ball & Co.
C. Harris v Nickerson.
D. Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd.

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6. Which of the following is the source of unwritten law in Malaysia?

A. Common law.
B. Regulations.
C. Rules.
D. Act.

7. A contract with consideration is:

A. Voidable.
B. Void.
C. Invalid.
D. Valid.

8. An advertisement that the goods is for sale is:

A. An offer.
B. A sale.
C. A joint sale.
D. An invitation to treat.

9. Which of the following contract is void?

A. A contract for natural love and affection made in writing and registered by parties in
near relation.
B. A contract for past consideration.
C. A contract for payment of debt limited by law.
D. A contract to carry prohibited drug.

10.: Which of the following agreements can a minor enter into?

A. The purchase of a luxury car.

B. The purchase of a pleasure yacht.
C. The purchase of basic necessaries.
D. The purchase of present for his parents’ birthday.

11. Which of the following contracts is voidable?

A. A contract made under coercion.

B. A contract made under undue influence.
C. A contract made within intention to deceive another party.
D. All of above.

12. What do you call an offer made to the world at large?

A. A bilateral offer.
B. A multi-lateral offer.
C. A collateral offer.
D. A unilateral offer.

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13. Which of the following agreement is presumed to have no intention to create legal
relation?

A. An agreement to buy a laptop from a shop.

B. An agreement made between husband and wife.
C. An agreement undertaking to repair a house for RM40000.
D. An agreement to buy a car as a gift to a friend.

14. A person who accepts an offer is known as: :

A. An offeror.
B. A promisor.
C. An offeree.
D. None of the above.

15. In the making of a contract, consideration:

A. Must be adequate.
B. Need not be sufficient.
C. Need not be adequate.
D. Must be adequate though not sufficient.

16. Which of the following agreements is not enforceable by law?

A. Commercial agreement.
B. Business agreement.
C. Domestic agreement.
D. None of above.

17. What remedy is available to an innocent party for a breach of a contract against the party
in breach?

A. Frustration.
B. Negligence.
C. Consideration.
D. Repudiation and damages.

18. Which of the following is enforceable by law?

A. Siti gives her house which is worth RM1 million to her daughter, Liza.
B. Siti informs her husband she wishes to give her house worth RM1 million to her daughter, Liza.
C. Siti, because of her love and affection for her daughter, Liza, puts in writing and registers her
agreement to give her house worth RM1million to Liza.
D. All of above.

19. Agreement made without consideration is:

A. Contract.
B. Legal.
C. Void.
D. None of the above.

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20. Agreement made to restrain a person from carrying out his profession, trade or business is:

A. Contract.
B. Legal.
C. Void.
D. Voidable contract.

21. Which of the following is not a contract?

A. A offers to sell his car to B for $10,000. The offer is accepted by B.

B. A offers to sell his car to B for $20,000 and B pays $200 to A who accepts the payment.
C. A offers to sell his car to B for $50,000 to B and B pays $5.00 together with a voucher
to travel to Australia and is accepted by A.
D. None of the above.

22. Which of the following is a contract?

A. A, a primary school student, makes an agreement with a car dealer to buy a car.
B. A, a mentally disturbed person, is asked by his doctor to sell his house to him.
C. A, when applying for a loan, is asked by his banker to pay interest much above normal rate.
D. A, a foreign student, makes an agreement with a car dealer to buy a car for $1M.

23. A, an engineer, orders for a machine. The manufacturer fails to supply the machine in accordance
with the main specification for the machine. What remedy is available to the engineer?

A. Damages.
B. Specific performance.
C. Injuncton
D. Rescission and damages.

24. The concept of privity of contract means:

A. No one can sue.

B. Everyone has a right to sue.
C. Parties to the contract only can sue.
D. None of above.

25. Which of the general rules is true of a social and domestic contract?

A. Court presumes parties have no intention to create legal relation.

B. Court, if necessary, takes into consideration parties’ intention to create legal relation.
C. Court presumes parties have intention to create legal relation.
D. Parties’ intention to create legal relation is irrelevant.

26. Which of the following is true in respect of the law of tort?

A. Defendant has suffered loss/injury.

B. Plaintiff has breached his duty of care.
C. Defendant owes a duty of care to the Plaintiff.
D. Defendant can claim ignorance of the law.

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27. A, an engineer, enters into a contract with B, a manufacturer, whereby B is to supply 10,000
kg of cement to be packed in plastic bags with each bag to contain 5 kg of cement
and with A’s logo printed on it. B supplies the cement in 10 kg plastic bags without A’s
logo printed on the bags. What action can be taken by A against B?

A. A can rescind the contract because B has breached the condition of the contract.
B. A can rescind the contract and claim damages because B has breached the condition of
the contract.
C. A can rescind the contract because B has breached the warranty under the contract.
D. All of above.

28. A, on 23 August, through telephone, makes an offer to B to sell his house. B responds that
he will reply on 25 August. B, on 24 August, sends a letter to say that he agrees to buy A’s
house and the letter is received by B on 30 August. On 29 August B has sold his house to C.
What action can B take against A?

A. B cannot take action against A because his letter is received by A late.

B. B cannot take action against A because A does not receive B’s reply on 25 August.
C. B can claim damages against A because B’s reply on 24 August concludes a contract.
D. None of the above.

29. Ali, an engineer, rents a house from Bijak. In the agreement it is agreed that Ali will rent the
house for $300 per month for as long as Ali wants. The agreement that is made between them is:

A. Valid.
B. Legal.
C. Void.
D. Illegal.

30. In the making a contract which of the following is not correct:

A. There must be a ‘consensus ad idem’.

B. There must be two parties to the contract.
C. Must have consideration.
D. The person in breach of the contract can be jailed.

31. A notice that is contained in an agreement or is made after the conclusion of an agreement to
exclude the liability of the offeree from the offeror is known as:

A. Condition clause.
B. Warranty clause.
C. Exemption clause.
D. None of the above.

32. The principle that an advertisement is an offer and not an invitation to treat was decided
in the case:

A. Partridge v Crittenden [1968] 2 All ER 731.

B. Carlill v Carbolic Smoke Ball & Co [1893] 1 QB 256.
C. Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 394.
D. Coelho v Public Services Commission [1964] MLJ 12

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33. The principle that the display of goods on the shelf in the shop is an invitation to treat and
not an offer was decided in the case:

A. Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 394.

B. Abdul Rashid Abdul Majid v Island Golf Properties Sdn Bhd [1989] 3 MLJ 376.
C. Preston Corp Sdn Bhd v Edward Leong & Ors [1982] 2 MLJ 22.
D. None of the above.

34. State TWO (2) conditions of an offer.

35. What is a void agreement?

36. Explain the term voidable agreement.

37. Describe briefly the ways an offer can be revoked.

38. Explain the differences between an agreement and a contract.

40. Describe FOUR (4) elements of a contract.

41. Explain the concept of acceptance to an offer by post.

42. State the requirements of an acceptance to an offer.

43. Describe briefly three ways by which an innocent party can claim against the party in
breach of a contract.

44. Describe briefly three factors under which a person can be said not to have entered into
into a contract without his free consent.

45. Lee wrote to Ha, his friend, that he wanted to sell his Proton Saga. When Ha received
Lee’s letter, he wrote to ask the model of his car. Lee in reply wrote to inform him the
model of his car is a Proton Saga 1.3, Year 2001 model. When Ha received Lee’s letter,
he wrote to say he wanted to buy his car for RM5000 and that, if he did not received his
reply 3 days’ time he would assume he has agreed to sell his car to him. Lee did not reply.

Ha claimed that there was a contract made between him and Lee on the sale of his car.
He now wants to take legal proceedings against Lee for breach of contract. Advise Lee.