1. Define Contract according to the Contracts Act 1950:

a) A voidable agreement enforceable by the law?

b) A void agreement enforceable by statue?

c) An agreement enforceable by the law upon satisfying the requisite elements?

d) A void agreement consented by parties to be enforceable by the law?

2. What is a Counter Offer?

a) An offer made by one party to himself?

b) An offer made by the offeree against the original offer and as such, the original offer is rejected?

c) Offer made to several parties?

d) A non-binding offer but an invitation to treat.

3. What is Consideration?

a) An non-valid or binding element of a contract?

b) The price of which one party pays which is also known as price of the offer?

c) A proposal made to third party?

d) An acceptance made to third party?

4. A Contract is void when:

a) Parties are majority of age?

b) Parties have the legal capacity?

c) Parties are of sound mind?

d) There is undue influence or fraud when entering into the agreement? 5. Acceptance must be:

a) Kept a secret?

b) Communicated to the Offeror?

c) Ignored?

d) Vague and unclear?

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6. What is Quantum Meruit (OM)?

a) An Act of Parliament?

b) A legal principal which means as much as he has earned which is applicable to cases of part performance of contract?

c) A non-binding term in a contract?

d) An element to form a contract?

7. Remedy of Restitution only applies when:

a) To any agreement which is enforceable?

b) To any agreement which is void?

c) To any agreement which is voidable?

d) To any agreement if it discovered to be void and the other party has received an advantage?

8. What is the principal of Severability?

a) A legal term unknown to law?

b) A legal term where a contract can be performed despite being void?

c) A legal term where a contract can be performed despite being vague?

d) A legal term where if a contract contains an illegal term or illegal part, the

Court may sever the unlawful part of the contract leaving the other parts of the contract lawful and capable of being performed.

9. Terms of a Contract must be:

a) Vague and unclear?

b) Clear and precise?

c) Drafted loosely?

d) Unlawful?

10. Terms can be implied into a contract by:

a) The government?

b) Parties who are not privy to the Contract?

c) By relevant Statues passed by Parliament?

d) By strangers?

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11. A term is a condition when:

a) It forms the essence of the contract and is a vital part of the contract?

b) It is trivial and does not affect the contract?

c) It is not part of the Contract?

d) The term is an innominate term?

12. What is the definition of terms?

a) Terms are irrelevant to the Contract?

b) Terms of a contract are described as duties and obligations that each party assumes under the agreement?

c) Terms are not important and only forms the understanding between parties?

d) Terms are not enforceable?

13. Which of the following is an offer?

a) Auction of goods in an Auction

b) Display of goods in a shopping centre

c) Advertisement of a car in a newspaper

d) Advertisement is leaflet for a reward of RM5,000.00 for a return of a lost cat.

14. What is a partnership?

a) A partnership consists of two or more business partners but not more than 20 to carry a certain trade or services for profit

b) A business entity owned by one person

c) A business entity owned by 21 and more person

d) A company

15. What is a Partnership Agreement?

a) An agreement that governs the relationship, duties and obligations in a firm of partners

b) An agreement with a sole partner and not the rest of the partners

c) An agreement with the government agency and a firm

d) An agreement with the landlord of the premise and the firm.