Law of Contract
Which of the following best describes the effect of a counter-offer in contract law?
a. It terminates the original offer and replaces it with a new one.
b. It accepts the original offer with minor modifications.
c. It has no legal effect on the original offer.
d. It creates an option contract.
a. It terminates the original offer and replaces it with a new one.
In contract law, what is the significance of the case Hyde v Wrench?
a. It established that silence cannot be considered acceptance.
b. It demonstrated that an offer can be revoked any time before acceptance.
c. It confirmed that a counter-offer terminates the original offer.
d. It ruled that advertisements are invitations to treat, not offers.
c. It confirmed that a counter-offer terminates the original offer.
Which of the following statements is true regarding misrepresentation in contract law?
a. It only applies if the statement was made fraudulently.
b. It allows the innocent party to rescind the contract.
c. It has no effect on the enforceability of a contract.
d. It requires the misled party to pay damages to the other party.
b. It allows the innocent party to rescind the contract.
In contract law, what is meant by the term "specific performance"?
a. A monetary remedy awarded in cases of breach.
b. An equitable remedy requiring the breaching party to fulfill their obligations under the contract.
c. A form of punitive damages awarded in cases of fraud.
d. A requirement for one party to provide additional consideration.
b. An equitable remedy requiring the breaching party to fulfill their obligations under the contract
Which of the following circumstances could render a contract voidable?
a. One party lacks the capacity to contract.
b. The subject matter of the contract is illegal.
c. One party is induced to contract by misrepresentation.
d. The offer is accepted but not communicated.
c. One party is induced to contract by misrepresentation.
In which of the following situations would a contract be automatically discharged?
a. When both parties mutually agree to terminate it.
b. When one party breaches a condition of the contract.
c. When the contract becomes impossible to perform due to unforeseen events.
d. When one party assigns their rights under the contract to another party.
c. When the contract becomes impossible to perform due to unforeseen events.
Under Irish contract law, which of the following cases would typically not be enforceable due to lack of consideration?
a. A promise to pay a debt that has already been paid.
b. A promise to refrain from smoking in exchange for a reward.
c. A promise to provide a service in exchange for a fee.
d. A promise to sell a car in exchange for a specified sum.
a. A promise to pay a debt that has already been paid
Which of the following statements is true regarding the Postal Rule in contract law?
a. It applies to all types of communication, including email and fax.
b. It states that acceptance is effective once received by the offeror.
c. It does not apply if the offer specifies a different mode of acceptance.
d. It applies only to contracts involving goods, not services.
c. It does not apply if the offer specifies a different mode of acceptance.
A “void contract” is best described as:
a. A contract that is legally binding but unenforceable in certain jurisdictions.
b. An agreement that has no legal effect from the outset.
c. A contract that is valid until one party decides to cancel it.
d. A contract that can be legally enforced with specific performance.
b. An agreement that has no legal effect from the outset.
Which of the following best describes an “offer” in contract law?
a. An indication that the offeror is willing to enter into a binding agreement on certain terms.
b. A general invitation for parties to negotiate terms.
c. A legally binding agreement that cannot be revoked.
d. An invitation to treat that invites offers.
Correct Answer: a. An indication that the offeror is willing to enter into a binding agreement on certain terms.
In which of the following cases would an acceptance not be valid under contract law?
a. The acceptance is made by post in response to a written offer.
b. The acceptance is made after the offer has been revoked.
c. The acceptance is made through silence where the offer states silence is acceptance.
d. The acceptance is made verbally and promptly after receiving the offer.
b. The acceptance is made after the offer has been revoked.
Which of the following statements is true about the intention to create legal relations in contract law?
a. Intention is always presumed in social and domestic agreements.
b. Intention is always presumed in commercial agreements unless rebutted.
c. Intention is only required in verbal contracts.
d. Intention is not required in contracts between businesses.
b. Intention is always presumed in commercial agreements unless rebutted.
Which of the following is considered valid consideration in contract law?
a. A promise to refrain from an act already legally prohibited.
b. A gift with no obligation to reciprocate.
c. A promise to provide services in exchange for payment.
d. An agreement to provide services based on moral obligations alone.
c. A promise to provide services in exchange for payment.
In relation to capacity, which of the following individuals lacks the full legal capacity to enter into a contract?
a. A person who is employed and over the age of 18.
b. A minor aged 16, purchasing a car on credit.
c. A corporation engaging in a commercial transaction.
d. A person who is fluent in English but resides outside Ireland.
A minor aged 16, purchasing a car on credit.
Which of the following is an example of an “exemption clause”?
a. A clause that limits liability to a specific monetary amount.
b. A clause that confirms acceptance of an offer.
c. A clause that outlines the required method of payment.
d. A clause that confirms the contract’s governing law.
a. A clause that limits liability to a specific monetary amount.
Which of the following circumstances could render a contract void due to mistake?
a. Both parties share a common misunderstanding about a fundamental fact.
b. One party believes the terms are more favorable than they are.
c. One party made a minor error in the terms of the contract.
d. Both parties made errors in drafting but agree to correct them.
a. Both parties share a common misunderstanding about a fundamental fact.
Which of the following is most likely to discharge a contract?
a. One party performs the contract in a manner slightly different from what was agreed.
b. Both parties agree to terminate the contract before it is fulfilled.
c. One party withdraws from the contract due to financial difficulty.
d. The contract remains unfulfilled for over one year.
b. Both parties agree to terminate the contract before it is fulfilled.
Which of the following is not a valid remedy for breach of contract?
a. Rescission of the contract.
b. Nominal damages.
c. A retraction of the offer by the offeror.
d. Specific performance.
c. A retraction of the offer by the offeror.
What is the main difference between a “condition” and a “warranty” in contract law?
a. Conditions are fundamental terms, while warranties are minor terms that cannot lead to termination of the contract.
b. Conditions are minor terms, while warranties are fundamental terms that can terminate the contract.
c. Conditions apply only to written contracts, while warranties apply to verbal agreements.
d. Warranties are part of an offer, while conditions are part of acceptance.
a. Conditions are fundamental terms, while warranties are minor terms that cannot lead to termination of the contract.
In Irish contract law, which of the following scenarios best illustrates an enforceable agreement despite no monetary consideration?
a. A friend agrees to lend a car for free without an expectation of repayment.
b. A contract made by deed where a homeowner transfers property without a sale.
c. An agreement to sell a product with payment to be made in the future.
d. A handshake agreement with mutual promises.
b. A contract made by deed where a homeowner transfers property without a sale.
Which of the following types of losses are generally not recoverable as damages for breach of contract?
a. Losses that were foreseeable at the time of the contract.
b. Losses that arise directly from the breach.
c. Consequential losses that are too remote from the contract.
d. Expenses incurred to mitigate the damage.
c. Consequential losses that are too remote from the contract.
Which of the following contracts would be void due to lack of legal capacity?
a. A loan agreement with a minor for educational purposes.
b. An employment contract with a person aged 19.
c. A sale of goods contract between two adults.
d. A contract for services with a corporate entity.
a. A loan agreement with a minor for educational purposes.
Which of the following best describes “anticipatory breach” in contract law?
a. When one party breaches the contract after it has been performed.
b. When one party indicates an intention not to perform before the performance is due.
c. When a contract is breached due to unforeseen circumstances.
d. When a breach occurs as a result of a party’s death or incapacity.
b. When one party indicates an intention not to perform before the performance is due.