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Negotiation Law: Contract Formation and Terms

Description: This quiz covers the fundamental principles of contract formation and terms in negotiation law. Test your understanding of offer, acceptance, consideration, and the various types of contract terms.
Number of Questions: 15
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Tags: contract law negotiation offer and acceptance consideration contract terms
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In the context of contract formation, what is the legal term for the proposal made by one party to another?

  1. Acceptance

  2. Consideration

  3. Offer

  4. Promissory Estoppel


Correct Option: C
Explanation:

An offer is a proposal made by one party to another, expressing a willingness to enter into a contract on certain terms.

Which of the following is NOT an essential element of a valid contract?

  1. Offer

  2. Acceptance

  3. Capacity

  4. Consideration


Correct Option: C
Explanation:

Capacity refers to the legal ability of a person to enter into a contract. It is not an essential element of a valid contract, as minors and individuals with mental disabilities may still be bound by contracts in certain circumstances.

What is the legal term for the agreement to the terms of an offer, resulting in the formation of a contract?

  1. Acceptance

  2. Consideration

  3. Offer

  4. Promissory Estoppel


Correct Option: A
Explanation:

Acceptance is the agreement to the terms of an offer, resulting in the formation of a contract.

Which of the following is NOT a valid form of acceptance?

  1. Express Acceptance

  2. Implied Acceptance

  3. Silence

  4. Counteroffer


Correct Option: C
Explanation:

Silence, in general, does not constitute acceptance. However, in certain circumstances, such as when there is a prior course of dealing between the parties, silence may be interpreted as acceptance.

What is the legal term for the thing of value exchanged in a contract?

  1. Acceptance

  2. Consideration

  3. Offer

  4. Promissory Estoppel


Correct Option: B
Explanation:

Consideration is the thing of value exchanged in a contract. It can be anything of value, such as money, goods, services, or a promise.

Which of the following is NOT a type of consideration?

  1. Past Consideration

  2. Adequate Consideration

  3. Executed Consideration

  4. Executory Consideration


Correct Option: A
Explanation:

Past consideration is not a valid form of consideration, as it has already been performed before the contract was entered into.

What is the legal term for a promise made in exchange for a promise?

  1. Bilateral Contract

  2. Unilateral Contract

  3. Voidable Contract

  4. Unenforceable Contract


Correct Option: A
Explanation:

A bilateral contract is a contract in which both parties make promises to each other.

Which of the following is NOT a type of contract term?

  1. Express Terms

  2. Implied Terms

  3. Quasi-Contractual Terms

  4. Void Terms


Correct Option: D
Explanation:

Void terms are not a valid type of contract term, as they are unenforceable by law.

What is the legal term for a contract term that is implied by law or custom?

  1. Express Terms

  2. Implied Terms

  3. Quasi-Contractual Terms

  4. Void Terms


Correct Option: B
Explanation:

Implied terms are contract terms that are implied by law or custom, even if they are not explicitly stated in the contract.

Which of the following is NOT a type of implied term?

  1. Terms Implied by Statute

  2. Terms Implied by Custom

  3. Terms Implied by Usage of Trade

  4. Terms Implied by the Court


Correct Option: D
Explanation:

Terms implied by the court are not a valid type of implied term, as they are not based on law, custom, or usage of trade.

What is the legal term for a contract term that is added to a contract after it has been formed?

  1. Express Terms

  2. Implied Terms

  3. Quasi-Contractual Terms

  4. Variation of Contract


Correct Option: D
Explanation:

A variation of contract is a contract term that is added to a contract after it has been formed.

Which of the following is NOT a requirement for a valid variation of contract?

  1. Mutual Agreement

  2. Consideration

  3. Written Form

  4. Capacity


Correct Option: C
Explanation:

A written form is not a requirement for a valid variation of contract, unless the original contract was required to be in writing.

What is the legal term for a contract that is unenforceable due to a lack of consideration?

  1. Void Contract

  2. Voidable Contract

  3. Unenforceable Contract

  4. Executed Contract


Correct Option: C
Explanation:

An unenforceable contract is a contract that is not legally binding due to a lack of consideration.

Which of the following is NOT a ground for rescission of a contract?

  1. Misrepresentation

  2. Mistake

  3. Duress

  4. Undue Influence


Correct Option: D
Explanation:

Undue influence is not a ground for rescission of a contract, as it is a type of duress.

What is the legal term for a contract that is void from the beginning?

  1. Void Contract

  2. Voidable Contract

  3. Unenforceable Contract

  4. Executed Contract


Correct Option: A
Explanation:

A void contract is a contract that is void from the beginning due to illegality, incapacity, or lack of genuine consent.

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