CHAPTER 1: test Flashcards
A contract without any consideration is void EXCEPT when
- on account of natural love and affection
- a past voluntary act
- an act which is compellable to do
- a statute barred debt
Taufiq promised to buy his wife a Bonia handbag for her birthday. This type of agreement is known as
A domestic agreement
A voidable contract is a contract which is
a) void ab initio
b) valid until the innocent party chooses to avoid ti
c) valid but becomes void because of an illegality
d) valid but cannot be enforced because ti does not comply with certain requirements of the law
valid but cannot be enforced because ti does not comply with certain requirements of the law
W h a t i s t h e l e g a l p r i n c i p l e ni t h e c a s e of C a r l i l l v C a r b o l i c S m o k e B a l l C o m p a n y L t d
A proposal can be made ot the world at large
A set of Pearl White antique dining table from Australia is put on auction by a licensed auctioneer. The reserved price has been fixed at RM20. Under the alw of contract, the auctioneer is making
an invitation to treat
Which of the following is NOT TRUE about intention to create legal relation?
a) There is no definition of intention under the Contracts Act 1950
b) In the case of Balfour VBalfour [1919] 2KB 571, there was no valid intention to create a contract
c) In Merrit VMerrit [1970] EWCA Civ 6, it was held by the court that there was an intention to create legal relation.
d) In social and domestic agreement, there is a strong presumption that the parties intend ot create legally binding contract.
d) In social and domestic agreement, there is a strong presumption that the parties intend ot create legally binding contract.
By virtue of section 10 of the Contracts Act 1950, a minor has no legal capacity to enter into a contract EXCEPT for
i) contract for insurance
ii) contract for beneficial or apprenticeship
iii) contract for necessaries
iv) contract for luxurious goods
a) i only
b) ii and iii
c) i, ii and iii
d) All of the above
C
Ah Meng who was drunk, got into a taxi and asked the driver ot take him to his house. This contract is _____ because Ah Meng was of unsound mind.
void
In order to succeed in an action for undue influence, a plaintiff must show that
i) the defendant was in a dominant position
ii) the plaintif was unable to exercise his own free will
iii) the plaintif was a minor
iv) the value of consideration was unreasonably low
i, ii and iv
What is an invitation ot treat?
It is a preliminary communication between parties at the stage of negotiation
Cecilia offered to sell her house to Monica for RM180,000. Monica wrote a letter stating that she was prepared to buy it for RM175,000. What is the legal position ni this case?
There is no valid contract as Monica’s letter is only a counter offer
Where the time is fixed for acceptance of the offer and it is not accepted within the fixed time, the effect wil be that
the offer automatically lapses on the expiry of the fixed time
False representation given by one party to another with the intention to deceive is an essential element to prove that there exist
misrepresentation
