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BUSINESS LAW - CONTRACT LAW—
ACTUAL QUESTIONS WITH ANSWERS
2026
Contract - correct-answer -between two or more parties that is enforceable by
the court of law
Elements of a contract - correct-answer -1. Agreement = Proper author, Proper
accepts
2. Consideration = For something of legal value ( I agreed to pay 10K to paint
appartment , you agreed to do it)
3. Capacity
4. Genuine assent (author of text book points it out as defence) = 5/ Voluntary
coming together
5. Legal purpose - The objective of the contract must be for a legal purpose. For
example, a contract for illegal distribution of drugs is not
a binding contract because the purpose for which it exists is not leg
The characters of our play - correct-answer -Offeror/promise giving the contract
Offeree/promise
Contract that need to be writting - correct-answer -a. Any contract for sale of land
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b. Any contract for more than one year
Consideration - correct-answer -Bargained for exchange. It is anything of value
promised to another when making a contract. It can take the form of money,
physical objects, services, promised actions, abstinence from a future action, and
much more. Consideration to create a legally enforceable contract entails a
detriment to the promisee OR a benefit to the promisor
Preexisting duty rule - correct-answer -You can not use the same consideration
twice
a. Unforeseeable difficulty (the one exception)
Past consideration is not valued consideration - lacks consideration from going
forward.
Minors - Capacity - correct-answer -Minors have the ability to avoid a contract (it
is statutory/automatic)
Unless they do not became emanicpated and contiue action or ratify
Minors exceptions - Capacity - correct-answer -If minors lie they both they and
adult have the ablity to recind a contract.
If minor is in business he or she has same rights as an adult when it comes to
contracts.
BUSINESS LAW - CONTRACT LAW—
ACTUAL QUESTIONS WITH ANSWERS
2026
Contract - correct-answer -between two or more parties that is enforceable by
the court of law
Elements of a contract - correct-answer -1. Agreement = Proper author, Proper
accepts
2. Consideration = For something of legal value ( I agreed to pay 10K to paint
appartment , you agreed to do it)
3. Capacity
4. Genuine assent (author of text book points it out as defence) = 5/ Voluntary
coming together
5. Legal purpose - The objective of the contract must be for a legal purpose. For
example, a contract for illegal distribution of drugs is not
a binding contract because the purpose for which it exists is not leg
The characters of our play - correct-answer -Offeror/promise giving the contract
Offeree/promise
Contract that need to be writting - correct-answer -a. Any contract for sale of land
, 2|Page
b. Any contract for more than one year
Consideration - correct-answer -Bargained for exchange. It is anything of value
promised to another when making a contract. It can take the form of money,
physical objects, services, promised actions, abstinence from a future action, and
much more. Consideration to create a legally enforceable contract entails a
detriment to the promisee OR a benefit to the promisor
Preexisting duty rule - correct-answer -You can not use the same consideration
twice
a. Unforeseeable difficulty (the one exception)
Past consideration is not valued consideration - lacks consideration from going
forward.
Minors - Capacity - correct-answer -Minors have the ability to avoid a contract (it
is statutory/automatic)
Unless they do not became emanicpated and contiue action or ratify
Minors exceptions - Capacity - correct-answer -If minors lie they both they and
adult have the ablity to recind a contract.
If minor is in business he or she has same rights as an adult when it comes to
contracts.
