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1. What is consideration in contract law?
A. Moral obligation
B. A bargained-for exchange
C. Past performance
D. Gratuitous promise
Answer: B
Rationale: Consideration requires a mutual exchange of value.
2. Which contracts must be in writing under the Statute of Frauds?
A. All oral agreements
B. Contracts for sale of land
C. Employment contracts under 1 year
D. Service contracts
Answer: B
Rationale: Contracts involving real property must be in writing.
3. What is an offer?
A. A preliminary negotiation
B. Manifestation of intent to contract
C. Acceptance of terms
D. Contract performance
Answer: B
Rationale: An offer shows intent to be bound upon acceptance.
4. What terminates an offer automatically?
A. Acceptance
B. Revocation
C. Rejection
,D. Death of offeror
Answer: D
Rationale: Death or incapacity terminates an offer.
5. What is acceptance?
A. A counteroffer
B. Agreement to terms of an offer
C. Withdrawal of offer
D. Negotiation phase
Answer: B
Rationale: Acceptance is assent to the offer’s terms.
6. What is a unilateral contract?
A. Promise for promise
B. Promise for performance
C. Written contract only
D. Illegal contract
Answer: B
Rationale: Acceptance is through performance.
7. What is a bilateral contract?
A. Promise for promise
B. Performance only
C. Gift agreement
D. Void contract
Answer: A
Rationale: Both parties exchange promises.
8. What is promissory estoppel?
A. Criminal liability
B. Enforcement of a promise without consideration
C. Tort doctrine
D. Statutory penalty
Answer: B
Rationale: Reliance can substitute for consideration.
9. What makes a contract void?
A. Minor breach
, B. Illegal subject matter
C. Late performance
D. Mistake only
Answer: B
Rationale: Illegal contracts are void ab initio.
10. What is a voidable contract?
A. Always enforceable
B. Enforceable at one party’s option
C. Illegal contract
D. Oral contract
Answer: B
Rationale: One party may rescind it.
11. What is duress?
A. Voluntary agreement
B. Improper threat inducing consent
C. Negligence
D. Fraudulent silence only
Answer: B
Rationale: Duress invalidates genuine consent.
12. What is fraud?
A. Honest mistake
B. Intentional misrepresentation
C. Silence always
D. Breach of contract
Answer: B
Rationale: Fraud involves intentional deception.
13. What is negligence?
A. Intentional harm
B. Failure to exercise reasonable care
C. Strict liability only
D. Contract breach