Question 1

Contracts may be in writing,they may be under seal,or they may simply be verbal,but they may not be implied from the conduct of the parties.

Accepted Answer

Contracts can be implied from the conduct of the parties, such as when both parties act as if they have agreed to specific terms. These are known as implied contracts.

Question 2

All commercial contracts must be evidenced by writing to be enforceable.

Accepted Answer

Not all commercial contracts need to be in writing to be enforceable. Some can be verbal or implied, although having a written contract is generally recommended to avoid potential disputes over the terms of the agreement.

Question 3

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Accepted Answer

Several jurisdictions have passed laws recognizing the legal validity of digital records and electronic signatures.

Question 4

Only contracts involving significant sums of money must be in writing to be enforceable.

Accepted Answer

This statement is false. While contracts involving significant sums of money may be more likely to be in writing, the enforceability of a contract does not depend solely on the amount of money involved. Many contracts, regardless of the amount of money involved, must be in writing to be enforceable, such as contracts for the sale of real estate, contracts that cannot be completed within one year, and contracts for the sale of goods above a certain value. Additionally, some contracts may be oral and still be enforceable if they meet certain requirements, such as the parties' intent to be bound and the existence of consideration.

Question 5

Contracts to commit a crime or a tort are void.

Accepted Answer

Contracts that involve committing a crime or a tort are illegal and against public policy, therefore they are considered void from the beginning.

Question 6

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid and it is merely unenforceable by the courts.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing in order to be enforceable by the courts. If an unwritten contract falls under the Statute of Frauds, it is still considered valid, but cannot be enforced through legal action.

Question 7

All contracts must be written to be binding.

Accepted Answer

Contracts can be oral or written, and both can be legally binding as long as they meet the requirements of a legally enforceable agreement (offer, acceptance, consideration, and intention to create legal relations). However, having a written contract can help prevent disputes over the terms and conditions of the agreement.

Question 8

If a contract is not evidenced in writing this does not make it void,only unenforceable.

Accepted Answer

According to the Statute of Frauds, certain types of contracts must be evidenced in writing to be enforceable, but the lack of written evidence does not necessarily make the contract void. Rather, it may be deemed unenforceable.

Question 9

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

Accepted Answer

Contracts can also be void due to illegality if they involve actions that are against public policy, even if those actions do not constitute a crime or tort.

Question 10

When the terms of an agreement make it impossible to perform the contract within one full year from the time the contract is entered into,there must be evidence in writing for it to be enforceable.

Accepted Answer

This is known as the "one-year rule" and requires written evidence for enforceability under the Statute of Frauds.

Question 11

In most jurisdictions,if the court classifies the nature of a third-party agreement as a guarantee,there is no requirement of writing.

Accepted Answer

In most jurisdictions, if the court classifies the nature of a third-party agreement as a guarantee, it may still require writing depending on the specific laws and regulations in that jurisdiction.

Question 12

Even in commercial relationships,if the parties make it absolutely clear that they don't intend the arrangement to be legally binding on them,the agreement will not be enforceable in court.

Accepted Answer

This is known as intention to create legal relations and is a crucial element in determining the enforceability of a contract. If both parties have clearly expressed their intention not to be legally bound, then the contract cannot be enforced in court.

Question 13

Today,there is no general rule that a contract must take a certain form,although most jurisdictions have statutory requirements regarding the transfer of land.

Accepted Answer

It is true that there is no general rule that a contract must take a certain form. However, there may be specific statutory requirements regarding certain types of contracts, such as those for the transfer of land.

Question 14

All contracts must be in writing to be enforceable.

Accepted Answer

Contracts can be enforceable even if they are not in writing, but some contracts (such as those involving real estate) may need to be in writing to be enforceable under the law.

Question 15

Contracts may be in writing,under seal,verbal,or even implied.

Accepted Answer

Contracts can take various forms, including written, sealed, verbal, and implied.

Question 16

All contracts that have the effect of restricting competition are void.

Accepted Answer

Not all contracts that restrict competition are void. Many jurisdictions allow for certain restrictive agreements if they are reasonable in scope and duration, serve legitimate business interests, and do not unduly harm competition.

Question 17

If a person says that he had not intended to be bound by an agreement when he entered it,there can be no contract.

Accepted Answer

This statement is false. Intention to be bound by an agreement is one of the essential elements of a contract, but it is not the only element. As long as all the other elements of a contract are present (offer, acceptance, consideration, and legality), the contract will be enforceable even if one party claims to have not intended to be bound.

Question 18

The first Statute of Frauds was enacted in the USA in the 20th century.

Accepted Answer

The first Statute of Frauds was actually enacted in England in 1677, several centuries before the 20th century. The statute was later adopted by many other countries, including the United States.

Question 19

The creation of a joint tenancy in land must be evidenced in writing.

Accepted Answer

According to the Law of Property Act 1925, a joint tenancy in land must be created by a written document, such as a deed or contract. This requirement is known as the "formalities of a trust" and is necessary to ensure the validity and enforceability of the joint tenancy.

Question 20

A contract that has been partially performed will be enforceable even though it is not in writing as required under the Statute of Frauds.

Accepted Answer

The doctrine of part performance allows for the enforcement of a partially performed contract even if it is not in writing as required under the Statute of Frauds.

Quiz 7: The Elements of a Contract: Capacity, Legality, and Intention