Legality of Contracts

Description: This quiz will test your knowledge of the legality of contracts.
Number of Questions: 15
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Tags: contract law legality of contracts
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Which of the following is not a requirement for a valid contract?

  1. Agreement

  2. Consideration

  3. Capacity

  4. Legality


Correct Option: D
Explanation:

Legality is not a requirement for a valid contract. The other three elements are essential for a contract to be valid.

A contract is illegal if it:

  1. Is against public policy

  2. Is prohibited by statute

  3. Is contrary to good morals

  4. All of the above


Correct Option: D
Explanation:

A contract is illegal if it is against public policy, prohibited by statute, or contrary to good morals.

Which of the following is an example of a contract that is illegal because it is against public policy?

  1. A contract to sell drugs

  2. A contract to commit a crime

  3. A contract to restrain trade

  4. All of the above


Correct Option: D
Explanation:

All of the above are examples of contracts that are illegal because they are against public policy.

Which of the following is an example of a contract that is illegal because it is prohibited by statute?

  1. A contract to sell alcohol to a minor

  2. A contract to gamble

  3. A contract to work without a license

  4. All of the above


Correct Option: D
Explanation:

All of the above are examples of contracts that are illegal because they are prohibited by statute.

Which of the following is an example of a contract that is illegal because it is contrary to good morals?

  1. A contract to sell a human organ

  2. A contract to engage in prostitution

  3. A contract to commit adultery

  4. All of the above


Correct Option: D
Explanation:

All of the above are examples of contracts that are illegal because they are contrary to good morals.

What is the effect of an illegal contract?

  1. The contract is void

  2. The contract is voidable

  3. The contract is unenforceable

  4. All of the above


Correct Option: D
Explanation:

An illegal contract is void, voidable, and unenforceable.

Who can challenge the validity of an illegal contract?

  1. The parties to the contract

  2. The government

  3. Third parties who are injured by the contract

  4. All of the above


Correct Option: D
Explanation:

All of the above can challenge the validity of an illegal contract.

What is the remedy for an illegal contract?

  1. Rescission

  2. Restitution

  3. Damages

  4. All of the above


Correct Option: D
Explanation:

All of the above are remedies for an illegal contract.

What is the purpose of the illegality doctrine?

  1. To protect the public from harmful contracts

  2. To promote fair dealing and good morals

  3. To deter people from entering into illegal contracts

  4. All of the above


Correct Option: D
Explanation:

The illegality doctrine serves all of these purposes.

Is a contract to sell a kidney illegal?

  1. Yes

  2. No


Correct Option: A
Explanation:

Selling a kidney is illegal in most countries because it is against public policy and contrary to good morals.

Is a contract to gamble on the outcome of a sporting event illegal?

  1. Yes

  2. No


Correct Option:
Explanation:

The legality of gambling contracts depends on the laws of the jurisdiction in which the contract is made.

Is a contract to work as a prostitute illegal?

  1. Yes

  2. No


Correct Option: A
Explanation:

Prostitution is illegal in most countries, so a contract to work as a prostitute is also illegal.

Is a contract to sell alcohol to a minor illegal?

  1. Yes

  2. No


Correct Option: A
Explanation:

Selling alcohol to a minor is illegal in most countries.

Is a contract to work without a license illegal?

  1. Yes

  2. No


Correct Option:
Explanation:

The legality of working without a license depends on the laws of the jurisdiction in which the work is performed.

Is a contract to restrain trade illegal?

  1. Yes

  2. No


Correct Option: A
Explanation:

Contracts that restrain trade are illegal in most countries because they are against public policy.

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