solution
ANSWER THE OBJECTIVE QUESTION
1.The meaning of the term ‘capacity to contract’ is the ability of a person to:
A. rescind a voidable contract
B. enter a necessary contract
C. enter a contractual relationship
D. avoid responsibilities under a contract.
2. Rihana says “Susan, I’m thinking of selling my car for RM 25,000.” Susan says, “I’ll give you RM 23,000 for the car” Rihana says “No.” Later Susan calls Rihana and says, “I have RM 25,000 and want the car.” In this case, Rihana:
A. must sell the car for RM 25,000 since the offer was accepted.
B. must sell the car for RM 25,000 since Susan has come up with the money.
C. does not have to sell the car because there was never a valid offer by her to sell.
D. does not have to sell the car to Susan because her offer was not accepted.
3. With respect to the formation of a contract, a counteroffer has the effect of:
A. constituting an acceptance.
B. completing the contractual exchange.
C. constituting an invitation to treat, not an offer.
D. destroying the original offer.
4. Under the postal rule, an acceptance is considered communicated and complete:
A. By verbal notification to the offeror.
B. On posting by the offeree.
C. When received and acknowledged by the offeror.
D. On receipt by the offeror.
5. Anggun Jewellers wrote a letter to Mila, “We have received an exceptionally fine Rolox watch which we will sell to you at a very favourable price.” Which of the following best describes the nature of Anggun Jeweller’s letter?
A. The letter lacks one of the essential elements of an offer
B.The letter is an offer to sell
C.The letter is an invitation to treat
D.The letter is an advertisement
6. The requirement that a party to a contract must intentionally exchange something of value in return of requiring the other party to do something is called:
A. Consent
B. Consideration
C. Intention to create legal relation
D. Contractual capacity
7. On 31st January, Shana, who lives in Kelantan, sent a letter offering to sell her ‘Diary of a Wimpy Kid’ book collection to Bhanu who lives in Perak. On 4th February, Bhanu post a letter to accept. However, on 3rd February afternoon Shana mailed a revocation to Bhanu. In this case:
A. Bhanu’s acceptance is invalid because it came after the revocation.
B. Bhanu’s acceptance is valid, and Shana’s revocation too late.
C. Bhanu acceptance is invalid because Shana’s revocation is valid.
D. Bhanu rejected the offer, so the offer is terminated.
8. Suppose now that instead of accepting Shana’s offer, Bhanu sends her a letter rejecting the offer. This rejection becomes effective:
A. As soon as Bhanu composes it.
B. As soon as Bhanu mails it.
C. As soon as Shana receives it.
D. As soon as Shana replies to it.
9. In Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd [1952], when was a contract of sale considered completed?
A. When a customer takes the item from the shelf
B. When the item is placed on the shelf for sale by the pharmacist
C. At the time when the customer puts the item into the shopping basket
D. At the time of paying under the supervision of the registered pharmacist
10. Anuar offers to sell Zain one of his laptop computers sometimes next month. Zain accepts the offer. In this case, is there a valid contract between the two?
A. Yes, because there is offer and acceptance
B. No, because the terms are not certain
C. Yes, because the offer is communicated to Zain
D. No, because the acceptance is invalid
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
