2. For an acceptance to be valid, it must be to the offeror A. Sent B. Advertise C. Communicated D. Shown

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INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA BUSINESS LAW WEEK 3 QUESTIONS TOPIC: LAW OF CONTRACT 1 Kindly go through chapter 3 in the video lecture before you attempt the questions because the

1 INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA BUSINESS LAW WEEK 3 QUESTIONS TOPIC: LAW OF CONTRACT 1 Kindly go through chapter 3 in the video lecture before you attempt the questions because the topic has been simplified and analyzed for easy understanding. REVIEW QUESTIONS SECTION A 1. To convert an offer into a contract, the offeree must. the offer. A. Accept B. Beat C. Welcome D. Allow 2. For an acceptance to be valid, it must be to the offeror A. Sent B. Advertise C. Communicated D. Shown STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 1

2 3. Which of the following is NOT an illegal contract at common law? A. A contract to commit a crime or tort B. An agreement to solicit for prostitutes C. A contract to obstruct the administration of justice D. A contract to supply local goods to a foreign country E. A contract with an alien enemy during the war 4. Where a party to a contract was forced to consent to the terms of a contract, such a contract is said to be A. Novel B. Fraudulent C. Binding D. Actionable per se E. Voidable 5. State the term of a contract which is fundamental and goes to the root of the contract. A. Condition B. Warranty C. Foundational D. Final E. Exclusionary 6. The type of mistake which the parties to a contract make when they are mistaken about the same thing is referred to as... STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 2

3 A. Divergent mistake B. Operational mistake C. Mutual mistake D. Common mistake E. General mistake 7. The rule of interpreting a contract document with ambiguity against the maker is known as. A. Contra proferentem rule B. Ambiguity rule C. Exceptional rule D. Wrongful interpretation rule E. Rejection rule 8. What is the legal contractual status of advertisements in newspapers offering goods and services for sale? A. Offer B. Invitation to treat C. Offer and acceptance D. Offer or acceptance E. Invitation to tender 9. Which of the following is absent in a domestic agreement? A. Capacity to contract B. Intention to create legal relations STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 3

4 C. Consideration D. Undue influence E. Duress 10. When two offers identical in terms, are sent by two parties to each other... is said to take place. A. counter offer B. passing offer C. exchanged offer D. cross offer E. concluded offer SECTION B 1. Define a contract 2. Differentiate between simple and special contract 3. Define an offer and mention the feature of a good offer 4. What are the ways to terminate an offer? 5. Mention and explain the rules of consideration 6. Explain the ways to show that parties to a contract intend to enter into a legal relation. 7. What is acceptance and the rule guarding acceptance by post? 8. Differentiate between condition and warranty STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 4

5 9. Apt Ltd is a small independent book company, which specialises in publishing modern poetry. In January 2013 it signed a contract with a new poet, called Bel, to publish her second book of poems in August In March 2013, Bel won a prestigious award for her first book of poems, which had been published privately. In the light of the fame which now attached to Bel, Apt Ltd launched an extensive advertising campaign publicizing the forthcoming book. The campaign was expensive, costing 50,000, but it was successful in generating great interest. As a result, Apt Ltd won a contract to supply a large book club with 100,000 copies of the book, which would make them a profit of 250,000. Unfortunately in May 2014, Bel informed Apt Ltd that she would not be able to supply the manuscript to it as she had signed a more rewarding contract with Cax plc, a very large publishing company. Required: In the context of Bel s anticipatory breach of contract, explain any possible remedies open to Apt Ltd. 10. Define privity of contract STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 5

THE CYPRUS INSTITUTE OF MARKETING DMM COMMERCIAL LAW

THE CYPRUS INSTITUTE OF MARKETING DMM COMMERCIAL LAW INTRODUCTION 18 LECTURES CIM BOOKLET + TEXT BOOK ATTENDANCE CONTACT yangos@cima.ac.cy COURSE ASSESSMENT 1. ASSIGNMENT No1. 7.5 % 2. ASSIGNEMENT No2.