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Business English Exercises
 

The Law of Contracts

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 109
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the law of contracts answer 1
In the nineteenth century, also known as the classical age of English contract law and the heyday of laissez-faire economic theory, common law rejected the moral theory of Lord Mansfield, which held that promises are a moral obligation.

Correct answer: (c) heyday

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the law of contracts answer 2
Contracts are promises that the law will enforce.

Correct answer: (b) enforce

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the law of contracts answer 3
The law provides remedies if a promise is breached and recognizes the performance of a promise as a duty.

Correct answer: (d) breached

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the law of contracts answer 4
Contracts arise when a duty does or may come into existence, because of a promise made by one of the parties.

Correct answer: (d) arise

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the law of contracts answer 5
The Law of Contracts deals with self-imposed duties, that is, agreements voluntarily concluded between parties.

Correct answer: (d) imposed

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the law of contracts answer 6
To be legally binding as a contract, a promise must be exchanged for adequate consideration.

Correct answer: (c) binding

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the law of contracts answer 7
Adequate consideration is a benefit which a party receives which reasonably and fairly induces them to make the promise/contract.

Correct answer: (c) induces

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the law of contracts answer 8
Promises that are purely gifts are not considered enforceable because the personal satisfaction the grantor of the promise may receive from the act is normally not considered adequate consideration.

Correct answer: (a) gifts

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the law of contracts answer 9
Certain promises that are not considered contracts may, in limited circumstances, be enforced if one party has relied to his detriment on the assurances of the other party.

Correct answer: (c) detriment

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the law of contracts answer 10
The Law of Contracts is usually broadly classified either as part of the Law of Obligations or as part of the system of private law (which encompasses contracts, property and torts).

Correct answer: (c) encompasses

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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