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Contract Law

1,453 Questions

Contract Law encompasses the rules and statutes governing legally binding agreements between parties. This hub provides practice questions on essential topics like legal obligations, breach of contract, and termination clauses. These concepts are frequently tested in law entrance tests and various other competitive government examinations.

Legal obligationsVoid contractsBreach of contractCommunication of acceptanceStatute of FraudsContract clauses

Contract Law Questions

Multiple choice

What is the legal term for the party who delegates their obligations under a contract?

  1. Assignor

  2. Assignee

  3. Delegator

  4. Delegate
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The delegator is the party who delegates their obligations under a contract to another party.

Multiple choice

What is the legal term for the party who assumes the obligations under a contract?

  1. Assignor

  2. Assignee

  3. Delegator

  4. Delegate
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The delegate is the party who assumes the obligations under a contract from another party.

Multiple choice

What is a publishing contract?

  1. A contract between an artist and a record label

  2. A contract between an artist and a manager

  3. A contract between an artist and a publisher

  4. A contract between an artist and a booking agent
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A publishing contract is a contract between an artist and a publisher. The contract gives the publisher the right to print, distribute, and sell the artist's music.

Multiple choice

Which of the following is NOT a defense to impossibility of performance?

  1. Frustration of purpose

  2. Impracticability

  3. Subjective impossibility

  4. Objective impossibility
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Subjective impossibility is not a defense to impossibility of performance because it is a matter of the promisor's own inability to perform, rather than an objective impossibility.

Multiple choice

Which of the following is an example of objective impossibility?

  1. A promisor promises to deliver a specific painting that was destroyed in a fire before the contract was entered into.

  2. A promisor promises to deliver a certain quantity of wheat, but the crop fails due to a drought.

  3. A promisor promises to build a house on a plot of land, but the land is later condemned by the government.

  4. A promisor promises to deliver a certain quantity of goods, but the goods are lost in transit.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Objective impossibility is an impossibility that is not caused by the promisor's own inability to perform. In this case, the painting was destroyed before the contract was entered into, making it objectively impossible for the promisor to deliver it.

Multiple choice

Which of the following is an example of subjective impossibility?

  1. A promisor promises to deliver a certain quantity of wheat, but the crop fails due to a drought.

  2. A promisor promises to build a house on a plot of land, but the land is later condemned by the government.

  3. A promisor promises to deliver a certain quantity of goods, but the goods are lost in transit.

  4. A promisor promises to paint a portrait of a person, but the person dies before the portrait is completed.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subjective impossibility is an impossibility that is caused by the promisor's own inability to perform. In this case, the promisor is unable to complete the portrait because the person died before it was completed.

Multiple choice

What is the effect of impossibility of performance on a contract?

  1. The contract is void from the beginning.

  2. The contract is voidable by the promisor.

  3. The contract is unenforceable.

  4. The contract is discharged.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Impossibility of performance discharges a contract, meaning that the parties are no longer obligated to perform their respective obligations.

Multiple choice

When is frustration of purpose a defense to impossibility of performance?

  1. When the purpose of the contract is frustrated by an event that was not foreseeable at the time the contract was entered into.

  2. When the purpose of the contract is frustrated by an event that was foreseeable at the time the contract was entered into.

  3. When the purpose of the contract is frustrated by an event that was caused by the promisor.

  4. When the purpose of the contract is frustrated by an event that was caused by the promisee.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Frustration of purpose is a defense to impossibility of performance when the purpose of the contract is frustrated by an event that was not foreseeable at the time the contract was entered into.

Multiple choice

Which of the following is an example of impracticability?

  1. A promisor promises to deliver a certain quantity of wheat, but the crop fails due to a drought.

  2. A promisor promises to build a house on a plot of land, but the land is later condemned by the government.

  3. A promisor promises to deliver a certain quantity of goods, but the goods are lost in transit.

  4. A promisor promises to paint a portrait of a person, but the person dies before the portrait is completed.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Impracticability is caused by an event that is within the promisor's control. In this case, the crop failure is not within the promisor's control, making it an example of impracticability.

Multiple choice

What is the effect of impracticability on a contract?

  1. The contract is void from the beginning.

  2. The contract is voidable by the promisor.

  3. The contract is unenforceable.

  4. The contract is discharged.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Impracticability discharges a contract, meaning that the parties are no longer obligated to perform their respective obligations.

Multiple choice

When is commercial impracticability a defense to impossibility of performance?

  1. When the cost of performance has increased so much that it is impossible for the promisor to perform without suffering a substantial loss.

  2. When the cost of performance has increased so much that it is impossible for the promisor to perform at all.

  3. When the cost of performance has increased so much that it is impossible for the promisor to perform without suffering a moderate loss.

  4. When the cost of performance has increased so much that it is impossible for the promisor to perform without suffering a minor loss.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Commercial impracticability is a defense to impossibility of performance when the cost of performance has increased so much that it is impossible for the promisor to perform without suffering a substantial loss.

Multiple choice

What is the effect of frustration of purpose on a contract?

  1. The contract is void from the beginning.

  2. The contract is voidable by the promisor.

  3. The contract is unenforceable.

  4. The contract is discharged.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Frustration of purpose discharges a contract, meaning that the parties are no longer obligated to perform their respective obligations.

Multiple choice

What are the legal remedies available to the government in the event of a breach of a mining contract by the mining company?

  1. Termination of the contract

  2. Damages

  3. Injunctions

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The legal remedies available to the government in the event of a breach of a mining contract by the mining company include termination of the contract, damages, and injunctions.

Multiple choice

What are the legal remedies available to the mining company in the event of a breach of a mining contract by the government?

  1. Termination of the contract

  2. Damages

  3. Injunctions

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The legal remedies available to the mining company in the event of a breach of a mining contract by the government include termination of the contract, damages, and injunctions.

Multiple choice

What are the key factors to consider when drafting a mining contract?

  1. The parties involved

  2. The mineral rights

  3. The mining method

  4. The environmental protection measures

  5. The financial terms

  6. All of the above
Reveal answer Fill a bubble to check yourself
F Correct answer
Explanation

The key factors to consider when drafting a mining contract include the parties involved, the mineral rights, the mining method, the environmental protection measures, and the financial terms.