### Multiple Choice Questions

1. According to Article 1675 of the Ethiopian Civil Code, a contract is:

- A. An agreement where one person agrees to help another.

- B. An agreement whereby two or more persons as between themselves create, vary, or extinguish
obligations of a proprietary nature.

- C. An obligation to perform a specific task.

- D. A verbal agreement between two parties.

2. Which of the following is not an element of a contract under Article 1675?

- A. Contracts are agreements.

- B. A contract needs at least two persons for its existence.

- C. The object of contracts is the establishment and performance of an obligation.

- D. A contract can be formed without any specific object.

3. What is the primary requirement for a contract to be valid according to Article 1678?

- A. The parties must have legal capacity.

- B. The contract must be notarized.

- C. The parties must be family members.

- D. The contract must be verbal.

4. What is required for consent to be considered valid in contract formation?

- A. It must be in writing.

- B. It must be defect-free and mutual.

- C. It must be notarized.

- D. It must be witnessed by a third party.

5. Which of the following is not necessary for an offer to be effective at law?

- A. Serious intention.

- B. Certainty or definiteness.

- C. Communication.
 - D. Approval by a notary.

6. What does Article 1682 state about acceptance in contract formation?

- A. Acceptance must be notarized.

- B. Silence constitutes acceptance.

- C. Acceptance must be absolute and unconditional.

- D. Acceptance must be in writing.

7. Which of the following is considered a vice or defect of consent?

- A. Lack of written form.

- B. Mistake, fraud, or duress.

- C. Lack of witnesses.

- D. Non-performance.

8. What is the effect of a decisive mistake under Article 1697?

- A. It nullifies the contract.

- B. It modifies the contract.

- C. It has no effect on the contract.

- D. It requires renegotiation.

9. Under which circumstance does mere false statement result in invalidation of the contract?

- A. When there is a confidential relationship among the contracting parties.

- B. When the statement is made verbally.

- C. When the statement is witnessed.

- D. When the statement is part of a public record.

10. What does Article 1678 require for the object of the contract?

- A. It must be profitable.

- B. It must be possible and lawful.

- C. It must be unique.
 - D. It must be approved by a third party.

11. According to Article 1719, what is the principle regarding the form of contracts?

- A. All contracts must be in written form.

- B. No special form is required.

- C. All contracts must be notarized.

- D. All contracts must be witnessed.

12. Which of the following is not an effect of non-performance under Article 1771?

- A. Specific performance.

- B. Cancellation of the contract.

- C. Damages.

- D. Modification of the contract.

13. Which of the following is an exception to the principle that specific performance is not an absolute
right of the creditor?

- A. When the performance affects the personal liberty of the debtor.

- B. When it is the special interest of the creditor.

- C. When the contract is verbal.

- D. When the debtor refuses to perform.

14. What is the nature of contractual damages according to Article 1791?

- A. Fault-based.

- B. Not fault-based, except in cases of force majeure.

- C. Always based on fault.

- D. Only applicable in written contracts.

15. Which of the following circumstances is not considered force majeure under Article 1792?

- A. Natural catastrophes.

- B. Outbreak of war.

- C. Increase in raw material prices.

 - D. Debtor's unexpected serious illness.

### Matching Questions

Match the following terms to their definitions:

A. Capacity

B. Consent

C. Offer

D. Acceptance

E. Mistake

F. Fraud

G. Duress

H. Object of Contract

I. Form of Contract

J. Performance

1. _____ Legal capacity of a person to perform juridical acts.

2. _____ Defect-free mutual agreement by the contracting parties.

3. _____ A firm and definite proposal made by the offeror to enter into a contract.

4. _____ Voluntary act by the offeree that shows assent to the terms of an offer.

5. _____ Erroneous belief in the truth of a situation or in the existence of something contrary to fact.

6. _____ Misrepresentation of material facts to induce a person into a contract.

7. _____ Threat of force or act of violence affecting free will in entering into contracts.

8. _____ Legal result which the parties wish to achieve in their contract.

9. _____ Outward appearance of the contract, making the will of the parties apparent.

10. _____ Execution of the contract in accordance with the terms within it.