PVL3702 LAW OF CONTRACT EXAM 2025
COMPLETE STUDY GUIDE EXAMINATION
TEST 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Which law governs the sale of goods? Answer: The Uniform
Commercial Code (UCC).
⩥ What governs contracts that are not for the sale of goods? Answer:
Common law.
⩥ What is the predominant purpose test? Answer: A test to determine
governing law for hybrid contracts, asking what the predominant
purpose of the transaction is.
⩥ What is the mirror image rule? Answer: Acceptance must commit to
exactly the terms of the offer, no more and no less.
⩥ What distinguishes unilateral contracts from bilateral contracts?
Answer: Unilateral contracts are accepted by performance only, while
bilateral contracts are accepted by promise or performance.
⩥ What is the parol evidence rule? Answer: A rule that limits the use of
outside evidence to interpret written contracts.
,⩥ What is the objective theory of contract? Answer: Determining party
intent through an objective approach rather than subjective thoughts.
⩥ What is a promise in contract law? Answer: A manifestation of intent
to act or refrain from acting in a specified way, justifying the promisee's
belief that a commitment has been made.
⩥ What are illusory promises? Answer: Statements that do not constitute
a promise, such as 'if' statements or mere expressions of intent.
⩥ What is the significance of the case King v. BU? Answer: It held that
a charitable pledge is enforceable if there is a promise to give property
and consideration and reliance on that promise.
⩥ What does 'meeting of the minds' refer to? Answer: The mutual
agreement and understanding between parties that forms the basis of a
contract.
⩥ What is consideration in contract law? Answer: The bargained-for
exchange of legal detriments that makes a promise enforceable.
⩥ What is the benefit-detriment theory? Answer: A theory that considers
the exchange of legal detriments as sufficient for consideration.
,⩥ What was the outcome of Hamer v. Sidway? Answer: It established
that consideration can be based on the exchange of legal detriments.
⩥ What are donative promises? Answer: Promises to make a gift that are
not enforceable unless consideration is provided.
⩥ What is the role of a reasonable person in contract law? Answer: To
determine how a hypothetical reasonable person would interpret the
intent of the parties.
⩥ What is promissory estoppel? Answer: A legal theory that enforces a
promise when the promisee has relied on it to their detriment.
⩥ What is unjust enrichment? Answer: A legal principle that prevents
one party from benefiting at the expense of another without
compensating them.
⩥ What is the public policy doctrine? Answer: A principle that renders
certain contracts unenforceable if they violate public policy.
⩥ What is unconscionability in contract law? Answer: A doctrine that
renders contracts unenforceable due to unfairness or oppression.
⩥ What is the Statute of Frauds? Answer: A legal requirement that
certain contracts must be in writing to be enforceable.
, ⩥ What does the term 'third-party beneficiaries' refer to? Answer:
Individuals who benefit from a contract made between two other parties.
⩥ What is the difference between assignment and delegation? Answer:
Assignment involves transferring rights under a contract, while
delegation involves transferring duties.
⩥ What is the concept of impossibility in contract law? Answer: A
doctrine that allows a party to be discharged from a contract when an
unforeseen event makes performance impossible.
⩥ What is the significance of the case Pepsico? Answer: It illustrated
that advertisements cannot be considered offers if they are absurd or
unrealistic.
⩥ What is moral consideration in contract law? Answer: Moral
consideration is not normal consideration and does not hold legal weight
in contract formation.
⩥ What is nominal consideration? Answer: Nominal consideration is not
considered valid unless in an option contract, as established in Berryman
v. Kmoch.
COMPLETE STUDY GUIDE EXAMINATION
TEST 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Which law governs the sale of goods? Answer: The Uniform
Commercial Code (UCC).
⩥ What governs contracts that are not for the sale of goods? Answer:
Common law.
⩥ What is the predominant purpose test? Answer: A test to determine
governing law for hybrid contracts, asking what the predominant
purpose of the transaction is.
⩥ What is the mirror image rule? Answer: Acceptance must commit to
exactly the terms of the offer, no more and no less.
⩥ What distinguishes unilateral contracts from bilateral contracts?
Answer: Unilateral contracts are accepted by performance only, while
bilateral contracts are accepted by promise or performance.
⩥ What is the parol evidence rule? Answer: A rule that limits the use of
outside evidence to interpret written contracts.
,⩥ What is the objective theory of contract? Answer: Determining party
intent through an objective approach rather than subjective thoughts.
⩥ What is a promise in contract law? Answer: A manifestation of intent
to act or refrain from acting in a specified way, justifying the promisee's
belief that a commitment has been made.
⩥ What are illusory promises? Answer: Statements that do not constitute
a promise, such as 'if' statements or mere expressions of intent.
⩥ What is the significance of the case King v. BU? Answer: It held that
a charitable pledge is enforceable if there is a promise to give property
and consideration and reliance on that promise.
⩥ What does 'meeting of the minds' refer to? Answer: The mutual
agreement and understanding between parties that forms the basis of a
contract.
⩥ What is consideration in contract law? Answer: The bargained-for
exchange of legal detriments that makes a promise enforceable.
⩥ What is the benefit-detriment theory? Answer: A theory that considers
the exchange of legal detriments as sufficient for consideration.
,⩥ What was the outcome of Hamer v. Sidway? Answer: It established
that consideration can be based on the exchange of legal detriments.
⩥ What are donative promises? Answer: Promises to make a gift that are
not enforceable unless consideration is provided.
⩥ What is the role of a reasonable person in contract law? Answer: To
determine how a hypothetical reasonable person would interpret the
intent of the parties.
⩥ What is promissory estoppel? Answer: A legal theory that enforces a
promise when the promisee has relied on it to their detriment.
⩥ What is unjust enrichment? Answer: A legal principle that prevents
one party from benefiting at the expense of another without
compensating them.
⩥ What is the public policy doctrine? Answer: A principle that renders
certain contracts unenforceable if they violate public policy.
⩥ What is unconscionability in contract law? Answer: A doctrine that
renders contracts unenforceable due to unfairness or oppression.
⩥ What is the Statute of Frauds? Answer: A legal requirement that
certain contracts must be in writing to be enforceable.
, ⩥ What does the term 'third-party beneficiaries' refer to? Answer:
Individuals who benefit from a contract made between two other parties.
⩥ What is the difference between assignment and delegation? Answer:
Assignment involves transferring rights under a contract, while
delegation involves transferring duties.
⩥ What is the concept of impossibility in contract law? Answer: A
doctrine that allows a party to be discharged from a contract when an
unforeseen event makes performance impossible.
⩥ What is the significance of the case Pepsico? Answer: It illustrated
that advertisements cannot be considered offers if they are absurd or
unrealistic.
⩥ What is moral consideration in contract law? Answer: Moral
consideration is not normal consideration and does not hold legal weight
in contract formation.
⩥ What is nominal consideration? Answer: Nominal consideration is not
considered valid unless in an option contract, as established in Berryman
v. Kmoch.
