Contract Law AI

Question 1

What is the definition of a contract under UK law?

Answer 1

A contract is a legally binding agreement between two or more parties.

Question 2

What are the essential elements required to form a valid contract?

Answer 2

Offer, acceptance, consideration, intention to create legal relations, and capacity.

Question 3

True or False: A verbal agreement can constitute a legally binding contract.

Answer 3

True

Question 4

What is consideration in contract law?

Answer 4

Consideration is something of value exchanged between the parties, which is essential for a contract to be valid.

Question 5

Fill in the blank: The parties to a contract must have the _____ to enter into the agreement.

Answer 5

capacity

Question 6

What is the ‘intention to create legal relations’?

Answer 6

It is the intention of the parties to be legally bound by their agreement.

Question 7

What is the difference between a unilateral and a bilateral contract?

Answer 7

A unilateral contract involves one party making a promise in exchange for an act, while a bilateral contract involves mutual promises between two parties.

Question 8

True or False: All contracts must be in writing to be enforceable.

Answer 8

False

Question 9

What is an offer in the context of contract law?

Answer 9

An offer is a clear proposal made by one party to another, indicating a willingness to enter into a contract.

Question 10

What is acceptance in contract law?

Answer 10

Acceptance is the unqualified agreement to the terms of the offer.

Question 11

List one type of contract that must be in writing to be enforceable.

Answer 11

Contracts for the sale of land.

Question 12

What is meant by ‘capacity’ in contract law?

Answer 12

Capacity refers to the legal ability of a person to enter into a contract.

Question 13

True or False: Minors can enter into contracts that are enforceable.

Answer 13

True, but they can void most contracts.

Question 14

What is a void contract?

Answer 14

A void contract is not legally enforceable and has no legal effect.

Question 15

What is a voidable contract?

Answer 15

A voidable contract is valid until one party chooses to void it.

Question 16

What is misrepresentation in contract law?

Answer 16

Misrepresentation is a false statement of fact that induces a party to enter into a contract.

Question 17

What are the three types of misrepresentation?

Answer 17

Fraudulent, negligent, and innocent.

Question 18

True or False: A contract can be discharged by performance.

Answer 18

True

Question 19

What does ‘discharge by breach’ mean?

Answer 19

Discharge by breach occurs when one party fails to perform their contractual obligations.

Question 20

What is ‘specific performance’ as a remedy in contract law?

Answer 20

Specific performance is a court order requiring a party to fulfill their contractual obligations.

Question 21

What is liquidated damages?

Answer 21

Liquidated damages are pre-determined amounts specified in a contract that are payable upon breach.

Question 22

What is a condition precedent in a contract?

Answer 22

A condition precedent is an event that must occur before a party is obligated to perform.

Question 23

What is a warranty in contract law?

Answer 23

A warranty is a minor term of a contract, the breach of which may result in a claim for damages but not termination.

Question 24

Fill in the blank: Contracts made under _____ or undue influence can be voided.

Answer 24

duress

Question 25

What is the 'parol evidence rule'?

Answer 25

The parol evidence rule prevents parties from presenting extrinsic evidence that contradicts written terms of a contract.

Question 26

What is the difference between express and implied terms in a contract?

Answer 26

Express terms are explicitly stated, while implied terms are not written but are assumed to exist based on the nature of the agreement or law.

Question 27

True or False: A party can assign their contractual rights without consent.

Answer 27

False, consent may be required depending on the contract terms.

Question 28

What is the doctrine of frustration in contract law?

Answer 28

Frustration occurs when an unforeseen event makes the performance of the contract impossible.

Question 29

What is an indemnity clause?

Answer 29

An indemnity clause is a provision in a contract that requires one party to compensate another for certain damages or losses.

Question 30

What does 'quantum meruit' mean?

Answer 30

Quantum meruit means 'as much as he has deserved' and refers to a claim for payment based on the value of work performed.

Question 31

Fill in the blank: A contract that is illegal is _____ and unenforceable.

Answer 31

void

Question 32

What is a pre-contractual statement?

Answer 32

A pre-contractual statement is a representation made before a contract is formed, which may or may not be binding.

Question 33

True or False: The Unfair Contract Terms Act 1977 protects consumers from unfair terms in contracts.

Answer 33

True

Question 34

What is a 'standard form contract'?

Answer 34

A standard form contract is a pre-prepared contract where most terms are set in advance and not negotiated.

Question 35

What is the significance of the case 'Carlill v Carbolic Smoke Ball Co'?

Answer 35

It established the principles of unilateral contracts and the requirement for acceptance.

Question 36

What does 'capacity to contract' refer to?

Answer 36

The legal ability of parties to enter into a contract, often restricted for minors or individuals lacking mental capacity.

Question 37

What is an 'offer'?

Answer 37

A proposal made by one party to another indicating a willingness to enter into a contract.

Question 38

What is 'acceptance'?

Answer 38

The unqualified agreement to the terms of an offer.

Question 39

What is 'consideration'?

Answer 39

Something of value exchanged between parties in a contract.

Question 40

What are 'exempt terms' in contracts?

Answer 40

Terms that limit or exclude liability for certain breaches, often scrutinized under the Unfair Contract Terms Act.

Question 41

True or False: An invitation to treat is an offer.

Answer 41

False

Question 42

What is an 'invitation to treat'?

Answer 42

An indication that a party is willing to negotiate the terms of a contract, not an offer.

Question 43

What is 'duress' in contract law?

Answer 43

Coercion or threats used to force someone into a contract.

Question 44

What is 'undue influence'?

Answer 44

A situation where one party exerts excessive pressure on another to enter into a contract.

Question 45

What is a 'contractual term'?

Answer 45

A provision that forms part of a contract and defines the rights and obligations of the parties.

Question 46

What is the 'reasonable person' standard in contract law?

Answer 46

A standard used to determine how a typical person would interpret a contract or behave in a given situation.

Question 47

What is 'reliance damages'?

Answer 47

Damages awarded to a party for costs incurred in reliance on a contract that was not fulfilled.

Question 48

What is a 'term implied by statute'?

Answer 48

A term that is automatically included in a contract due to legislation, regardless of the parties' intentions.

Question 49

Fill in the blank: A party may be liable for _____ if they fail to perform their contractual duties.

Answer 49

breach of contract

Question 50

What is 'promissory estoppel'?

Answer 50

A legal doctrine that prevents a party from going back on a promise even if a legal contract does not exist.

Question 51

What is 'novation' in contract law?

Answer 51

The act of replacing one of the parties in a contract, with the consent of all parties involved.

Question 52

What does 'ratification' mean in contract law?

Answer 52

The act of confirming or validating a previously unauthorized contract.

Question 53

True or False: An oral contract is always unenforceable.

Answer 53

False

Question 54

What is the role of the 'court' in contract disputes?

Answer 54

To interpret the terms of the contract and determine if a breach has occurred.

Question 55

What is an 'exclusion clause'?

Answer 55

A clause that limits or excludes liability for certain breaches of contract.

Question 56

What is 'specific performance'?

Answer 56

A legal remedy that compels a party to fulfill their contractual obligations.

Question 57

What is the legal term for 'a breach of contract'?

Answer 57

Non-performance of the contractual obligations.