MASTERMINDS STUDY GROUP

UNIVERSITY OF GHANA BUSINESS SCHOOL -UGBS

EXAMS PREPAREANCE.
COMMERCIAL LAW I
COMPILED BY S.K. OFORI & T.A SENANU

MCQ SET 1
1. The raking back of an offer by the offeror is________
a. revocation
b. rejection
c. cancellation
d. consideration

2. A contract that amounts to nothing and has no legal effect is ________

a. bilateral
b. voidable
c. void
d. unilateral

3. A contract that contains a promise by both parties is__________ S.K. OFORI - 0246585860
a. express
b. implied
c. bilateral
d. unilateral
4. A valid contract must contain at least four of the six elements of a contract.
a. True

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b. False

5. A(n) _______ occurs when one party to a contract does not do what he or she agreed to do.
a. breach
b. fraud
c. consideration
d. ratification

6. If a valid offer is met with a valid acceptance, the result is _______

a. misrepresentation
b. agreement
c. legality
d. consideration

7. People sometimes enter into _____________contracts without saying a word.

a. voidable
b. express
c. unenforceable
d. implied

8. The offeree’s refusal, or ______________, of an offer end that offer.

a. rejection S.K. OFORI - 0246585860
b. revocation
c. implication
d. expression

9. An offer must be definite, communicated to the offeree, and ___________

a. signed

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b. implied
c. intended
d. timely

10. When a bilateral mistake is made, neither party may avoid the contract.
a. True
b. False

11. A deliberate deception to secure unfair or unlawful gain is __________

a. misrepresentation
b. libel
c. unilateral mistake
d. fraud

12. Kofi is the son of Mr. Wilson. Mr. Wilson and Kofi agreed that if Kofi washes his Toyota
RAV 4 car twice a week. Mr. Wilson will pay Kofi GHS 30. It has been three (3) weeks now and
Mr. Wilson has not paid Kofi the agreed amount. Kofi can enforce the agreement against Mr.
Wilson.
a. True
b. False

13. A minor can never enter into any contract because he or she has no capacity to enter into a
contract.
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a. True
b. False

14. Edward is 16 years old and a student at the Catholic Junior High School. Edward agrees with
Mr. Foli. the owner of the local electronics shop, to sell an IPhone 6 to Mr. Foli. When Mr Foli
asked why Edward is selling the phone. Edward informs Mr. Foli that he needed the money for
his 23rd birthday celebrations. Mr. Foli accepts the offer and pays a deposit of GHS 400 to

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Edward. Edward has failed to deliver the IPhone to Mr. Foli. Mr. Foli cannot enforce the
agreement against Edward.
a. True
b. False

15. Which of the following statements about consideration is NOT correct

a. Consideration may be in cash or kind
b. Consideration must always move to the Promisor
c. Consideration must always move from the Promisee
d. Consideration must always be sufficient

16. Under the Common Law, a promise to forgo a part payment of a debt will not invalid of the
absence of consideration.
a. True
b. False.

17. The following are NOT sufficient consideration EXCEPT:

a. Performance of a duty imposed by law
b. Performance of an existing contractual obligation
c. Performance of an existing obligation owed to a third party
d. Performance of an agreement of forbearance

18. Generally, property as well as risk in goods will pass from the seller to the buyer at the time S.K. OFORI - 0246585860
the parties agree or intend them to pass in the contract
a. True
b. False

Use the following fact set to answer questions 19-21

William is a young lawyer who is setting up his office. He needs a photocopy machine and
decides to acquire a machine from Office Supplies Company on a hire purchase basis. Under the

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agreement, the total hire purchase price was stated is GHS 5,000. The monthly installment is
GHS 500 The Installment payment is due on the last day of every month. The first installment
payment was made on 31st January. 2020 and is scheduled to terminate on 31st October, 2020.

19. In what month will the become protected goods if William does not default on any
installment payment
A. April
B. June
C. September
D. August
E. May

20. In September, 2017. William decides to close down his law practice and instead study to
become a Chartered Accountant. He has therefore decided to terminate the Hire Purchase
Agreement. What is William's liability if he terminates the Hire Purchase Agreement in
September?
A. GHS 1,000
B. GHS 1,500
C. William will not have to pay any money to Office Supplies
D. GHS 800
E. GHS 250

21. Assume that instead of terminating the agreement, William decides to buy the photocopy
machine for use in a photocopy business. How much must William pay to Office Supplies to
convent the hire purchase agreement into an outright sale in September, 2017? S.K. OFORI - 0246585860
A. GHS 1,000
B. GHS 1.500
C. William will not have to pay any money to Office Supplies
D. GHS 800
E. GHS 250

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22. An executed contract conveys a chose in possession whereas an executory contract conveys a
chose in action
a. True
b. False

23. Which of the following is not a way of discharge of contracts?

A. Frustration
B. Performance
C. Breach
D. Agreement
E. Unilateral cancellation

Use the following scenario to answer questions 24-26

Mrs. Ofori is the proprietor of a food processing company. She entered into a contract with
Whole Grains Company Limited. Under the contract the parties agreed that Whole Grains
Company Limited will deliver 200 bags of wheat to Mrs. Ofori. Whole Grains Delivered 213
bags of wheat Whole Grains Company Limited also delivered 50 bags of Coconut flour to Mrs.
Ofori

24. Regarding the bags of wheat, which of the following is NOT an option available to Mrs.
Ofori?
a. Reject the 213 bags of wheat and refuse to pay the price
b. Accept 200 bags of wheat and pay the price agreed
c. Recover any costs incurred in separating the 200 bags from the 213 bags.
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d. Ask for the cost incurred to be borne by the company.

25. With respect to the bags of coconut flour, which of the following actions can Mrs. Ofori
take?
a. Accept all the goods including the coconut flour and pay for the coconut flour
b. Reject the coconut flour only
c. Recover damages for separating the coconut flour from the wheat

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d. Reject all the goods delivered to her

26. Generally, at what point will the property in the wheat pass from Whole Grains Company
Limited to Mrs. Ofori?
a. On conclusion of the agreement for sale.
b. On payment of the full price under the contract
c. On delivery of the goods to Mrs. Ofori
d. Whiles in transit to be delivered to Mrs. Ofori

Use the following scenario to answer questions 27-29

Mr. Mensah has a house at East Legon which he has put on the market. Yoyo describes himself
as an estate agent and has brought several potential clients to see the house and meet Mr.
Mensah. Eventually Yoyo brings to the house and Dovene decides to rent the house to which Mr.
Mensah agreed. At the end of the first month of living in the house, Mr. Mensah asks Dovene to
pay the electricity bill. Dovent is angry and claims thai Yoyo represented to him that the rent
included the electricity bill.

27. Which type of authority does Yoyo have, if any?

a. Express Actual Authority
b. Ostensible authority
c. Implied Actual Authority
d. Yoyo has authority by reason of ratification

28. Mr. Mensah has refused to pay Yoyo any commission for the rental of the house arguing that
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Yoyo is not his agent. Yoyo can successfully sue Mr. Mensah to recover his commission.
a. True
b. False.

29. What type of agency relationship exists between Mr. Mensah and Yoyo, if any
A. Agency created by ratification
B. Agency created by estoppel

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C. Agency created by operation of law/necessity
D. Agency created by implied authority
E. There is no agency relationship

30. Which of the following terms if included in a Hire Purchase Agreement will be invalid?
a. A statement/clause that gives the Owner the power to enter into any premises and take
possession of the goods let under the agreement
b. A statement of the total hire purchase price
c. A statement of the date on which each installment payment is due
d. A statement of the amount to be paid each month
e. A statement that a person acting on behalf of the Owner is an agent of the Hirer

31. Viva Farm Fresh Company Limited put an advert in the Daily Graphic asking the public to
put in a bid to supply pineapples, oranges and mangoes to the company. Viva Farm Fresh is the
Offeror.
a. True
b. false.

32. Which of the following is not a real right of the seller?

A. Stoppage of the goods in transit
B. Recovery of possession of the goods
C. An action for damages against the buyer for non-acceptance of goods delivered and non-
payment of price
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D. A lien on the goods

33. A party may plead non-est factum where he carelessly or negligently signs a document.
a. True
b. False

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34. In a credit sale agreement. Ms. Schandrof agrees to buy and Nissan Ghana Limited agrees to
sell to her the latest Nissan Kicks car at a total price of GH 120.000, payment to be made in 24
equal installments What type of agreement is this?
A. Sale of Goods Agreement
B. Hire Purchase Agreement
C. Conditional Sale Agreement
D. Sale of Vehicle Agreement

35. Under a Conditional Sale or Hire Purchase Agreement, the Owner or Seller can enforce a
contract of guarantee even if the owner or Seller cannot enforce the Conditional Sale or Hire
Purchase Agreement itself
a. True
b. False

36. In a sale of goods by description, there is an implied condition that the goods shall
correspond substantially with the description by which they were sold.
a. True
b. False.

Use the following scenario to answer questions 37-39

On 1st January, X wrote to Y offering to sell to him a house for $1.000.000.00, the offer to
remain open for a week. On 3rd January, Y posted a letter stating. "I am still considering our
offer but now I am only willing to pay e 700.00". Later the same day, Y posted a second letter
stating "I have reconsidered the matter, 1000, 000.00 is an excellent offer and I accept. X
received the first letter on 5th January and at once entered into a contract to sell the property to
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someone else. Y's second letter arrived on 6th January

37. The letter from Y which was posted on 3rd January constitutes a ______ Counter Offer

38. X is in breach of contract for selling the house to someone else.

a. True
b. False.

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39. On which date was a valid contract concluded between X and Y, if at all?
A. There was no contract concluded between X and Y
B. The contract was concluded on 3rd January
C. A contract was concluded on 5th January
D. A contract was concluded on 6th January

40. Which of the following is NOT a means by which price is determined in a sale of goods
contract?
A. Expressly fixed by the Parties
B. Implied into the contract
C. Course of dealings of the Parties
D. In a manner agreed by the parties

41. Only a legal owner can transfer property in the goods to another person.
a. True
b. False

42. Communication of revocation of an offer is sufficient and effective if the communication is

received by the offeree through a reliable third party.
a. True
b. False.

43. Where a hirer exercises his option to purchase the goods; he must tender to the owner. S.K. OFORI - 0246585860
A. The cash price
B. The difference between the amount paid and the total purchase price
C. The difference between the amount paid and half of the total purchase price
D. Any 3 installment payments outstanding
E. The difference between the cash price and the hire purchase price

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44. Mr. Mensah is a dealer in cars at Tema. Derick is a new lawyer in town and needs to buy a
car befitting his status. Derick pays for a car and Mr. Mensah delivers the title documents to him.
However, because Derick is traveling to the USA for a conference, he asks Mr. Mensah to keep
the car in his garage until Derick returns. While the car remains in possession of Mr. Mensah,
who bears the risk?
A. Mr. Mensa
B. Derrick
C. Both Derick and Mr. Mensah
D. Either Derrick or Mr. Mensah

45. Which of the following is NOT a MANDATORY element for the formation of a valid Hire
Purchase Agreement?
A. The agreement must be in writing and must be signed by the Hirer
B. The agreement must contain a statement of the cash price
C. The agreement must contain a statement of the hite purchase price
D. The agreement must contain notices about the hirer's right to terminate
E. The amount of each installment payment.

46. The principle of quantum meirut allows a party to recover payment for work done under a
contract
a. True
b. False

47. Kwame and Afia, citizens of Ghana, are involved in a case related to the adoption of their
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child. The courts in Ghana.
a. Have concurrent jurisdiction with federal courts over this case.
b. Have original jurisdiction over this case.
c. Have exclusive jurisdiction over this case
d. Do not have jurisdiction for over case.

48. Kafui files a suit against Attobrah in a circuit court and loses. Kafui

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a. Cannot take her case any higher in the court system.
b. Can insist that the Supreme Court hear her case
c. Can plead her case before an appellate court.
d. Can plead her case before a small claims court.

49. Kwamena files a suit against Araba. If Araba fails to respond, Kwamena
a. must appeal the case to a different court.
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him.

50. Kumah files a suit against Dadebu in a circuit court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review of Kumah
v. Dadebu, the appellate court upholds the lower court's verdict. The appellate court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.

MC SET 2

1. What is consideration?
a) Nothing to care about S.K. OFORI - 0246585860
b) The third tort case
c) A necessary element make agreements binding contracts
d) The judge is using consideration to instruct the jury in a trial

2. What is the age of capacity to enter into a valid and a binding contract in Ghana?
A. 18

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B. 21
C. 16
D. 22

3. All the following are elements of a valid and a binding contract except
A. Offer and acceptance
B. Dispute resolution clause
C. Capacity
D. Consideration

4. Execatory consideration is___________

a) An act that is performed in exchange for a promise given earlier
b) A promise to be performed in the future in exchange for another promise
c) An act that is performed before a promise is made
d) A promise that is executed by one party to the contract

5. All the following are examples of "invitations to treat except

a. Advertisement of goods in a newspaper
b. Display of goods in a shop
c. Auction sales
d. Letter inviting family members for a treat

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6. The postal rule applies to all the following except______
A. Letter communicating an offer by post
B. Letter communicating an acceptance by post
C. Communication of acceptance by post but the letter eventually got lost or damaged
D. Communication of acceptance by post but the offeror never received the letter.

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7. A box of chocolate is labelled as Ghc15.00 on the top shelf in a super mart. This is an
a. offer to the customer to buy the chocolate for Ghc15.00
b. opportunity for the customer to make a counter offer
c. invitation to the customer to ask about the chocolate
d. invitation to the customer to make an offer for the chocolate

8. The postal rule principle was first established in which English case
a. Hyde v Wrench
b. Carlil v Carbolic Smoke ball Co. Ltd
c. Smith v Hughes
d. Adams v Lindsell

9. Hyde Wrench [1840) EWHC Ch 390 is a leading English Contract Law case on the issue of
a. Postal Rule
b. Counter offers
c. Acceptance by conduct
d. Capacity to contract

10. The case of Nash v Innman best illustrates which principle in contract law.
a. Minors do not have capacity to contract with adults
b. the capacity of people non compos mentis to contract
c. the intention to create legal relations in social contracts S.K. OFORI - 0246585860
d. Illegality.

11. In the Law of Contract, consensus ad idem" means

a. Mutual partnership
b. Mutual understanding
c. Mutual intentions.

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d. Mutual engagement

12. The Law of Contract is nothing but

A. a child of commercial dealing
B. a child of religion.
C. a child of day-to-day politics.
D. a child of economics.

13. An agreement consists of reciprocal promises between at least

A. four parties.
B. six parties.
C. three parties.
D. two parties.

14. Contractual rights and duties are created by

A. static
B. statute
C. parties
D. custom or usage.

15. Contracts classified on the basis of performance are

A. executed contracts S.K. OFORI - 0246585860
B. executory contracts
C. partly executed or partly executory contracts
D. all of the above

16. Express contract means a contract made by

A. words either spoken or written

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B. documents
C. both words and documents
D. all of the above

17. A. promised to marry B. Later on B. died. This contract of marriage

A. becomes void
B. is void from very beginning
C. is valid
D. is illegal now.

18. An implied contract is one which comes into existence on account of

A. conduct of the parties
B. non-availability of a paper for writing
C. inability of parties to write or speak
D. directions given by a court

19. A contract in which, under the terms of a contract, nothing remains to be done by either party
is known as
A. executed contract.
B. executory contract.
Cunilateral contract.
D. none of the above.
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20. A contract in which, under the terms of a contract, one or both the parties have still to
perform the obligations in future is known as:
A. executed contract.
B. executory contract
C. unilateral contract.
D. none of the above.

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21. All illegal agreements are void; but all void agreements are not illegal.
A. True
B. Partly true
C False
D. None of the above

22. An offer and its acceptance is the basic requirement of an agreement and as per this
requirement an offer by one party________
A. should be made to the other who is related to him.
B. may also be made to himself.
C. should be made to another who may or may not be related to him.
D. should be made to another before the Registrar

23. According to enforceability, the contracts may be classified as

A. valid contracts.
B. void contracts.
C. voidable contracts.
D. all of the above.

24. In social agreements usual presumption is_________

A. that parties do not intend to create social relations
B. that parties intend to perform them.
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C. that parties do not intend to make legal and social relations
D. that the parties do not intend to create legal relations between them

15. An agreement is ___________?

A. enforceable by law if it meets the requirements of the law of the land
B. enforceable by law if any one party to it wants
C. enforceable against the law
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D. enforceable by law if it is made by competent parties

26. Where the obligation in a contract is outstanding on the part of both parties, it is called
A. void contract.
B. illegal agreement
C. unilateral contract
D. bilateral contract

27. Bonds wrote McGuire, "I will sell you my house and lot at 419 West Lombard Street, San
Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within
60 days of the date of your acceptance. Assuming that Bonds letter contains terms which are
deemed sufficiently certain and definite, which of the following statements is correct?
A. Bonds letter is not an offer unless Bonds intended it to be an offer.
B. Bonds letter is not an offer unless McGuire thought Bonds intended to make an offer.
C. Bonds letter is an offer if a reasonable person with full knowledge of the circumstances would
be justified in thinking it was intended as an offer.
D. Bonds letter is not a offer unless both Bonds and McGuire considered it as an offer.

28. Iverson Jewelers wrote a letter to Miller. "We have received an exceptionally fine self-
winding Rolox watch which we will sell to you at a very favorable price."
A. The letter is an offer to sell
B. A valid offer cannot be made by letter
C. The letter contains a valid offer which will terminate within a reasonable time.
D. The letter lacks one of the essential elements of an offer S.K. OFORI - 0246585860

29. Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1,000 worth of
heroin, an illegal substance. This is an example of a
A. quasi contract.
B. void contract
C. voidable contract

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D. secondary party beneficiary contract.

30. When referring to a system of law, common law refers to:

A. The legal system in which laws are based on precedent, i e... the recorded reasons given by
judges for their decisions, which are adopted by judges in later cases with similar facts.
B. The legal system derived from Roman law that focuses on the development of a
comprehensne legislated code
C. The rules of law administered by the courts of equity.
D. The rights and duties that cach person has in society.

31. An intention to create legal relations:

A. Is determined by a test of whether the parties themselves actually intended to enter into a
contract.
B. Is determined by a test of whether a reasonable person would believe the parties intended to
enter into a contract
C. Is usually presumed in a family context but not a business context.
D. Both b and c.

32. This method of termination of an offer occurs when the offeree responds with a willingness
to enter into a contract but on different terms
A. Lapse
B. Revocation
C. Rejection
D. Counter-offer S.K. OFORI - 0246585860

33. Which of these is not consideration or acceptable in lieu of consideration

A. Something a party did prior to contemplation of the contract
B. A promise to perform a pre-existing contractual obligation to a third party.
C. Money.
D. A little red sticker.

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34. A cell phone contract:
A. Is considered necessary since all minors need cell phones and therefore would be minor
B. Is considered a contract for beneficial service and therefore would be binding on the minor.
C. Would have to be repudiated by a minor promptly after becoming an adult or the minor would
be liable under its terms as if he or she had been an adult all along.
D. Could be repudiated by the minor, and the minor would not have to pay for cell-phone
services received before or after repudiation.

35. This is a term not expressly included in the contract by the parties but one that a reasonable
person would have included had the person thought about it:
A. Express term.
B. Implied term.
C. Parol term
D. Mistaken term

36. A void contract is:

A. A contract that does not meet seven key requirements from intention to create relations
through legality.
B. A contract with no legal effect from the beginning, as though it never happened.
C. A contract that is valid unless and until it is rejected at the option of one of the parties.
D. A contract with a mistake in it.

37. Statute law is:

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A. A law made by the legislature.
B. law made by judges
C. law found in the Quran
D. established by country's constitution

38. Which ONE of the following correct? As general rule, in contract for the sale of goods, the
A. expectations of the buyer

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B. description given the seller or given on behalf the seller
C. recognized in the trade
D. to description from course of dealings with the seller

39. In a contract for the sale of goods, the goods must be: __________
A. Of a satisfactory size and sharp
B. Satisfactory to the buyer
C. Satisfactory to all involved in its sale
D. Of satisfactory quality

40. Which following is not a discharge contracts?

A. Breach
B. Frustration
C. Performance
D. Unilateral cancellation

41. Contract of the sale of goods is one where;

A. A seller gives goods to another by way contract, for safe keeping
B. Goods passed to another to use in his business
C. A seller transfers or agrees to transfer, the property in goods to the buyer for a money
consideration called the price
D. Goods are loaned under a contract of hire to a customer
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42. An agreement valid_________

A. Which creates legal and social obligations the
B. Which creates rights of a party
C. Which is written a piece paper and signed by the parties
D. Which creates legally binding right and obligations of the parties to it

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43. Voidable contract is one_________
A. Which is lawful.
B. Which is invalid.
C. Which is valid as long as it is not avoided by the party entitled to do so.
D. Which is unlawful.

44. When the contract is perfectly valid but cannot be enforced because of certain technical
defects. This is called
A. Unilateral contract.
B. Bilateral contract.
C. Unenforceable contract.
D. Void contract.

45. ________ is without any legal effect and cannot be enforced in a Court of Law.
A. Valid contract
B. Void contract
C. Voidable contract
D. Unenforceable contract.

46. A void agreement is void ab initio but a void contract is not void ab initio,
A. True
B. False
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C. Partly true
D. Partly false

47. A contract needs to be written, registered and signed by the parties and witnessed
A. If any party wishes so.
B. If the Contract Act directs so.
C. If any other Act provides so.
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D. If the consideration is a large amount.

48. A and B enter into a contract to marry each other. Before the time fixed for the marriage. A
goes mad. The contract becomes
A. Void.
B. Illegal
C. Valid
D. Voidable

49. _____________is forbidden by law.

A. Valid contract
B. Illegal agreement.
C. Voidable contract
D. Unenforceable contract

50. Which of the following is not a source of Law in Ghana?

a. Acts of Parliament
b. Judgments of the Courts
c. The 1992 Constitution
d. Commands of the President

51. The branch of law which deals with resolving disagreements between private citizens is
referred to as S.K. OFORI - 0246585860
a. Criminal Law
b. Civil Law
c. Administrative Law
d. Common Law

52. In agreements made in a social setting, there is the usual presumption that:

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A. Parties do not intend to agree.
B. Parties intend to perform them.
C. Parties do not intend to make legal and social relations.
D. The parties do not intend to create legal relations between them.

53. A seller of goods can only transfer all the right in goods to a buyer where:
A. He has the authority of the owner to do so
B. He is the true owner of property
C. All of the above
D. None of the above

54. A contract in which, under the terms of a contract, nothing remains to be done by either party
is known as
A. Executed contract.
B. Executory contract.
C. Unilateral contract.
D. None of the above.

55. Bubbly Soda Company hires Carlo to work on Bubbly's shipping dock, checking outgoing
loads and dispatching Bubbly's drivers. With respect to Carlo, Bubbly is most likely
A. an employee.
B. an agent.
C. an independent contractor. S.K. OFORI - 0246585860
D. a principal.

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 MCQ SET 3

1. Which of the following statements about consideration is NOT correct

a. Consideration may be in cash or kind
b. Consideration must always move to the Promisor
c. Consideration must always move from the Promisee
d. Consideration must always be sufficient
e. Consideration may be executed or executory

2. Ekua is the daughter of Mr. Mensah, who promised Ekua that if she washes his car twice a
week, he will increase her allowance for the next academic year from GHS 200 a month to GHS
250 a month. Ekua dutifully washes the car twice a week as agreed. However, Mr. Mensah did
not increase the allowance as he has promised. Ekua is upset with her father. She knows that you
are in the level 200 commercial law class and has asked for your advice. Based on your
knowledge of the law of contract, which of the following would be your correct advise?
a. Ekua can enforce the agreement against her father because an agreement is an agreement
b. Ekua can enforce the agreement against her father because she has provided consideration
c. Ekua cannot enforce the agreement against her father because there was no intention to create
legal relations
d. Ekua cannot enforce the agreement against her father because it was not made in writing
e. None of the above.

3.Which of the following contracts can infants enter into?

a. Contract to learn the skills of carpentry
S.K. OFORI - 0246585860
b. Contract to buy food and drinks from KFC
c. Contract to buy a perfume from PerfumeAv
d. a and c only
e. a and b only

4. Fitzgerald and Bassey is a company that retails laptops. It has created a product catalog
detailing the laptops, their specifications and prices. Christina is a level 200 student who needs a

25
laptop and saw the catalog after which she phoned the company to express her intention of
buying one. Which of the following statements is NOT True?
a. Fitzgerald and Bassey company is the offeror
b. The catalog is an invitation to treat
c. Christina is the offeror
d. Christina accepted an offer when she phoned the company to express her intention to buy a
laptop
c. All of the above

5. Which of the following is NOT true in a CIF contract?

a. The seller has the obligation to obtain insurance
b. The buyer has the obligation to nominate the ship
c. The seller has the obligation to obtain the export license
d. The buyer has the obligation to obtain the import license
e. Transfer of property in the goods passes when the bill of laden is delivered to the buyer

6. Robert makes the following statement while negotiating the sale of his car. "This is the
sharpest car on the market." His statement may support a claim for
a. Misrepresentation
b. Fraud and Misrepresentation
c. Fraud
d. None of the above

S.K. OFORI - 0246585860

7. Parties cannot be discharged from their obligations under a contract
a. True
b. False

8. Statute law is ___________

(c) A law made by the legislature

26
(f) law made by judges
(g) law found in the Quran
(h) law established by a country's constitution

9. Which ONE of the following is correct? As a general rule, in a contract for the sale of goods,
the goods must correspond with:
(e) The expectations of the buyer
(f) The description given by the seller or given on behalf of the seller
(g) That recognized in the trade
(h) That understood to be the description from a course of dealings with the seller

10. In a contract for the sale of goods, the goods must be:
(e) Of a satisfactory size and shape
(f) Satisfactory to the buyer
(g) Satisfactory to all involved in its sale
(h) of satisfactory quality

11. Which of the following is not a way of discharge of contracts?

(e) Frustration
(f) Breach
(g) Performance
(h) Unilateral cancellation
S.K. OFORI - 0246585860

12. A contract for the sale of goods is one where:

(e) A seller gives goods to another by way of a contract, for safe keeping
(f) Goods are passed to another to use in his business
(g) A seller transfers or agrees to transfer, the property in goods to the buyer for a money
consideration called the price
(h) Goods are loaned under a contract of hire to a customer

27
13. An agreement is valid ____________
(e) Which creates legal and social obligations of the parties.
(f) Which creates rights of a party.
(g) Which is written on a piece of paper and signed by the parties.
(h) Which creates legally binding right and obligations of the parties to it

14. Voidable contract is one _______

(e) Which is lawful.
(f) Which is invalid
(g) Which is valid as long as it is not avoided by the party entitled to do so.
(h) Which is unlawful

15. When the contract is perfectly valid but cannot be enforced because of certain technical
defects. This is called
(e) Unilateral contract.
(f) Bilateral contract.
(g) Unenforceable contract.
(h) Void contract.

16. _________ is without any legal effect and cannot be enforced in a Court of Law.
(e) Valid contract
(f) Void contract
S.K. OFORI - 0246585860
(g) Voidable contract.
(h) Unenforceable contract

17. A void agreement is void ab initio but a void contract is not void ab initio.
(e) True
(f) False
(g) Partly true
28
(h) Partly false

18. A contract needs to be written, registered and signed by the parties and witnessed
(e) If any party wishes so.
(f) If the Contract Act directs so.
(g) If any other Act provides so.
(h) If the consideration is a large amount.

19. A and B enter into a contract to marry each other. Before the time fixed for the marriage. A
goes mad. The contract becomes:
(e) Void
(f) Illegal
(g) Valid.
(h) Voidable.

20. ____________ is forbidden by law

(e) Valid contract
(f) Illegal agreement
(g) Voidable contract
(h) Unenforceable contract

21. Kwame and Afia, citizens of Ghana, are involved in a case related to the adoption of their
child. The courts in Ghana S.K. OFORI - 0246585860
a. Have concurrent jurisdiction with federal courts over this case.
b. Have original jurisdiction over this case.
c. Have exclusive junisdiction over this case
d. Do not have jurisdiction for over case.

22. Kafui files a suit against Attobrah in a circuit court and loses. Kafui

29
a. Cannot take her case any higher in the court system.
b. Can insist that the Supreme Court hear her case.
c. Can plead her case before an appellate court.
d. Can plead her case before a small claims court.

23. Kwamena files a suit against Araba. If Araba fails to respond, Kwamena
a. must appeal the case to a different court.
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him.

24. Kumah files a suit against Dadebu in a circuit court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review of Kumah
v. Dadebu, the appellate court upholds the lower court's verdict. The appellate court has
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.

25. Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House
restaurant. Garland knowingly misrepresents a number of material features about the restaurant
and the business. When Jules discovers the truth, he can
a. Not rescind the contract because Jules assumed the risk that the bargain would prove to be
different from what he thought S.K. OFORI - 0246585860
b. Rescind the contract on the basis of fraud.
c. Rescind the contract on the basis of mistake
d. Rescind the contract on the basis of undue influence

26. Akosua makes a contract with Birago to beat her business competitor. This is an example of
(a) Valid contract.

30
(b) Illegal agreement.
(c) Voidable contract.
(d) Unenforceable contract.

27.__________ is made by words spoken.

(a) Express contract
(b) Implied contract
(c) Tacit contract
(d) Unlawful contract

28. _________ is made by words written

(a) Express contract
(b) Implied contract
(c) Tacit contract
(d) Unlawful contract

29. Brenya appoints Sika as his agent, by way of a power of attorney. This is an example of
(a) Express contract.
(b) Implied contract.
(c) Tacit contract.
(d) Unlawful contract.

S.K. OFORI - 0246585860

30. ____________ implies a contract though the parties never expressed their intention to enter
into a contract
(a) Express contract
(b) Implied contract
(c) Electronic contract
(d) Unlawful contract

31
31. Where a contract has to be inferred from the conduct of parties, it is called
(a) Express contract.
(b) Implied contract
(c) Tacit contract.
(d) Unlawful contract.

32. Drawing cash from ATM, sale by fall of hammer at an auction sale, ate, are example of
(a) Express contract.
(b) Implied contract.
(c) Tacit contract.
(d) Unlawful contract.

33.________ is a one-sided contract which only one party has to perform his promise or
obligation.
(a) Void contract
(b) Illegal agreement
(c) Unilateral contract
(d) Bilateral contracti

34. An agreement is ___________

(a) enforceable by law if it meets the requirements of the law of the land
(b) enforceable by law if any one party to it wants.
S.K. OFORI - 0246585860
(c) enforceable against the law.
(d) enforceable by law if it is made by competent parties.

35. Where the obligation in a contract is outstanding on the part of both parties, it is called
(a) void contract.
(b) illegal agreement.
(c) unilateral contract.
32
(d) bilateral contract.

36. Where a particular type of contract is required by law to be in writing and registered, it must
the necessary formalities as to writing, registration and attestation. Otherwise, such a contract
comply with is
(a) void contract.
(b) illegal agreement.
(c) valid contract.
(d) unenforceable contract.

37. Which of the following is not a source of Law in Ghana

(a) Acts of Parliament
(b) Presidential Decrees
(c) Judgments of the Courts
(d) The 1992 Constitution

38. The branch of law which deals with resolving disagreements between private citizens is
referred to
(a) Criminal Law
(b) Civil Law
(c) Administrative Law
(d) Common Law

S.K. OFORI - 0246585860

39. All illegal agreements are void; but all void agreements are not illegal.
(a) True
(b) Partly true
(c) False
(d) None of the above

33
40. The Postal Rule in communication of acceptance applies only to communication through the
post.
(a) True
(b) False

41. An 'express term' is a term of a contract that is distinctly or overtly stated rather than implied
(a) True
(b) False

42. Consideration may be in the form of a return promise or the actual performance of a
stipulated act.
(a) False
(b) True

43. In an auction sale without a reserve price, the seller is allowed to bid once at the beginning of
the auction sale.
(a) True
(b) False

44. Where there is a contract for the sale of unascertained goods no property in the goods is
transferred to the buyer unless and until the goods are ascertained.
(a) True
(b) False
S.K. OFORI - 0246585860
45. The price in a contract of sale may be fixed by the contract, or may be left to be fixed in a
manner agreed by the contract, or may be determined by the course of dealing between the
parties.
(a) True
(b) False

34
46. Wher e there is a contract for the sale of specific goods, and the goods without the knowledge
of the seller have perished at the time when the contract is made, the contract is void
(a) True
(b) False

47. A contract creates_________

(a) rights and obligations of the parties to it.
(b) obligations of the parties to it
(c) mutual understanding between the parties to it.
(d) mutual lawful rights and obligations of the parties to it

48. Where there is an agreement to sell specific goods and subsequently the goods, without any
fault on the part of the seller or buyer, perish before the risk passes to the buyer, the agreement is
valid
(a) True
(b) False

49. Where under a contract of sale the transfer of the property in the goods is to take place at a
future time or subject to some condition later to be fulfilled the contract is called an agreement to
sell
(a) True
(b) False

50. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled S.K. OFORI - 0246585860
subject to which the property in the goods is to be transferred.
(a) True
(b) False

51. If the sale is by sample as well by description, it is sufficient that the bulk of the goods
corresponds with the sample if the goods do not also correspond with the description.
(a) True

35
(b) False

52. Where there is a contract for the sale of unascertained goods, property in the goods is
transferred to the buyer even before the goods are ascertained.
(a) True
(b) False

53. Under the Common Law, a promise to forgo a part payment of a debt will not be invalid by
reason only of the absence of consideration.
(a) True
(b) False

54. An executed contract conveys a chose in possession whereas an executory contract conveys a
chose in action.
a. True
b. False

55. A party may plead non-est factum where he carelessly or negligently signs a document.
(a) True
(b) False

MCQ SET 4

S.K. OFORI - 0246585860

1. Generally, a circuit court's power is limited to the territorial boundaries of the circuit in which
it is located and the immediately adjacent circuits
a. True
b. False

2. A minor can never enter into any contract because he/she has no capacity to enter into a
contract

36
a. True
b. False

3. Edward is 16 years old and a student at the Catholic Junior High School. Edward agrees with
Mr Foli the owner of the local electronics shop, to sell an IPhone 6 to Mr. Foll. When Mr Foli
asked why Edward is selling the phone. Edward informs Mr. Foli that he needed the money for
his 23rd birthday celebrations Mr. Foli accepts the offer and pays a deposit of GHS 400 to
Edward. Edward has failed to deliver the IPhone to Mr. Foli. Mr. Foli cannot enforce the
agreement against Edward.
a. True
b. False.

4. Which of the following statements about consideration is NOT correct

A. Consideration may be in cash or kind
B. Consideration must always move from the Promisee

C. Consideration must always move to the Promisor

D. Consideration must always be sufficient
E. Consideration may be executed or executory

5. Judicial review is the process by which a court decides on the constitutionality of legislative
enactments and actions of the executive branch.
A. True
B. False
S.K. OFORI - 0246585860

6. Under the Common Law, a promise to forgo a part payment of a debt will not be invalid by
reason only of the absence of consideration.
a. True
b. False

7. The following are NOT sufficient consideration EXCEPT:

37
A. Performance of a duty imposed by law
B. Performance of an existing contractual obligation
C. Performance of an existing obligation owed to a third party
D. Performance of an agreement of forbearance

8. Generally, property as well as risk in goods will pass from the seller to the buyer at the time
the parties agree or intend them to pass in the contract.
a. True
b. false

Use the following facts to answer questions 9-11

William is a young lawyer who is setting up his office. He needs a photocopy machine and
decides to acquire a machine from Office Supplies Company on a hire purchase basis. Under the
agreement, the total hire purchase price was stated as GHS 5,000. The monthly installment is
GHS 500. The Installment payment is due on the last day of every month. The first installment
payment was made on 31st January, 2017 and is scheduled to terminate on 31st October. 2017.
9. In what month will the goods become protected goods if William does not default on any
installment payment?
A. April
B. June
C. September
D. August
E. May

S.K. OFORI - 0246585860

10. In September, 2017, William decides to close down his law practice and instead study to
become a Chartered Accountant. He has therefore decided to terminate the Hire Purchase
Agreement. What is William's liability if he terminates the Hire Purchase Agreement in
September?
A. GHS 1,000
B. GHS 1,500
C. William will not have to pay any money to Office Supplies

38
D. GHS 800
E. GHS 250

11. Assume that instead of terminating the agreement, William decides to buy the photocopy
machine for use in a photocopy business. How much must William pay to Office Supplies to
convert the hire purchase agreement into an outright sale in September, 2017.
A. GHS 1,000
B. GHS 1,500
C. William will not have to pay any money to Office Supplies
D. GHS 800
E. GHS 250

12. An executed contract conveys a chose in possession whereas an executory contract conveys a
chose in action.
a. True
b. False

13. Which of the following is not a way of discharge of contracts?

A. Frustration
B. Performance
C. Breach
D. Agreement
E. Unilateral cancellation S.K. OFORI - 0246585860

14. In Kettle Cafe's suit against Food Services. Inc., the court issues a judgment in Kettle's favor
The judgment can be appealed to an appropriate court of appeals by
A. either party.
B. Kettle only.
C. Food Service only.
D. neither party.

39
Use the following scenario to answer questions 15-17
Mrs. Ofori is the proprietor of a food processing company. She entered into a contract with
Whole Grains Company Limited. Under the contract the parties agreed that Whole Grains
Company Limited will deliver 200 bags of wheat to Mrs. Ofori. Whole Grains Delivered 213
bags of wheat. Whole Grains Company Limited also delivered 50 bags of Cocomat flour to Mrs.
Ofori.
15. Regarding the bags of wheat which of the following is NOT an option available to Mrs. Ofori
a. Reject the 213 bags of wheat and refuse to pay the price
b. Accept 200 bags of wheat and pay the price agreed
c. Recover any costs incurred in separating the 200 bags from the 213 bags
d. Ask for the cost incurred to be borne by the company

16. With respect to the bags of coconut flour, which of the following actions can Mrs. Ofor take?
a. Accept all the goods including the coconut flour and pay for the coconut flour
b. Reject the coconut flour only
c. Recover damages for separating the coconut flour from the wheat
d. Reject all the goods delivered to her

17. Generally, at what point will the property in the wheat pass from Whole Grains Company
Limited to Mrs. Ofori?
a. On conclusion of the agreement for sale
b. On payment of the full price under the contract
c. On delivery of the goods to Mrs. Ofori
d. Whiles in transit to be delivered to Mrs. Ofori S.K. OFORI - 0246585860

Use the following scenario to answer questions 18-20

Mr. Mensah has a house at East Legon which he has put on the market. Yoyo describes himself
as an estate agent and has brought several potential clients to see the house and meet Mr.
Mensah. Eventually Yoyo brings to the house and Dovene decides to rent the house to which Mr.
Mensah agreed. At the end of the first month of living in the house, Mr. Mensah asks Dovene to
pay the electricity bill. Dovene is angry and claims that Yoyo represented to him that the rent
included the electricity bill.

40
18. Which type of authority does Yoyo have, if any?
A. Express Actual Authority
B. Ostensible authority
C. Implied Actual Authority
D. Yoyo has no authority
E. Yoyo has authority by reason of ratification

19. Mr. Mensah has refused to pay Yoyo any commission for the rental of the house arguing that
Yoyo is not his agent. Yoyo can successfully sue Mr. Mensah to recover his commission.
a. True
b. False.

20. What type of agency relationship exists between Mr. Mensah and Yoyo, if any
A. Agency created by ratification
B. Agency created by estoppel
C. Agency created by operation of law/necessity
D. Agency created by implied authority
E. There is no agency relationship

21. Which of the following terms if included in a Hire Purchase Agreement will be invalid?
a. A statement/clause that gives the Owner the power to enter into any premises and take
possession of the goods let under the agreement
b. A statement of the total hire purchase price S.K. OFORI - 0246585860
c. A statement of the date on which each installment payment is due
d. A statement of the amount to be paid each month
e. A statement that a person acting on behalf of the Owner is an agent of the Hirer

22. Viva Farm Fresh Company Limited put an advert in the Daily Graphic asking the public to
put in a bid to supply pineapples, oranges and mangoes to the company. Viva Farm Fresh is the
Offeror

41
a. True
b. False

23. Which of the following is not a real right of the seller?

A. Stoppage of the goods in transit
B. Recovery of possession of the goods
C. An action for damages against the buyer for non-acceptance of goods delivered and non-
payment of price
D. A lien on the goods

24. A party may plead non-est factum where he carelessly or negligently signs a document.
a. True
b. False

25. In a credit sale agreement, Ms. Schandrof agrees to buy and Nissan Ghana Limited agrees to
sell to her the latest Nissan Kicks car at a total price of GH 120,000; payment to be made in 24
equal installments. What type of agreement is this?
A. Sale of Goods Agreement
B. Hire Purchase Agreement
C. Conditional Sale Agreement.
D. Sale of Vehicle Agreement

26. Under a Conditional Sale or Hire Purchase Agreement, the Owner or Seller can enforce a S.K. OFORI - 0246585860
contract of guarantee even if the Owner or Seller cannot enforce the Conditional Sale or Hire
Purchase Agreement itself.
a True
b. False

27. In a sale of goods by description, there is an implied condition that the goods shall
correspond substantially with the description by which they were sold

42
a. True
b. False.

Use the following scenario to answer questions 28-30

On 1st January, X wrote to Y offering to sell to him a house for GHe 1,000,00, the offer to
remain open for a week. On 3rd January Y posted a letter stating, "I am still considering our
offer but now am only willing to pay GHe 700.00". Later the same day, Y posted a second letter
stating "I have reconsidered the matter, GHe 1,000.00 is an excellent offer and I accept. X
received the first letter on 5th January and at once entered into a contract to sell the property to
someone else. Y's second letter arrived on 6th January
28. The letter from Y which was posted on 3rd January constitutes a __________ Ans: Counter
Offer

29. X is in breach of contract for selling the house to someone else.

a True
b. False

30. On which date was a valid contract concluded between X and Y. if at all?
A. There was no contract concluded between X and Y
B. The contract was concluded on 3rd January
C. A contract was concluded on 5th January
D. A contract was concluded on 6th January

31. Which of the following is NOT a means by which price is determined in a sale of goods
S.K. OFORI - 0246585860
contract?
A. Expressly fixed by the Parties
B. Implied into the contract
C. Course of dealings of the Parties
D. In a manner agreed by the parties

32. Only a legal owner can transfer property in the goods to another person.

43
a. True
b. False

33. Communication of revocation of an offer is sufficient and effective if the communication is

received by the offeree through a reliable third party.
a. True
b. False

34. Where a hirer exercises his option to purchase the goods, he must tender to the owner.
A. The cash price
B. The difference between the amount paid and the total purchase price
C. The difference between the amount paid and half of the total purchase price
D. Any 3 installment payments outstanding
E. The difference between the cash price and the hire purchase price

35. Mr. Mensah is a dealer in cars at Tema. Derick is a new lawyer in town and needs to buy a
car befitting his status. Derick pays for a car and Mr. Mensah delivers the title documents to him.
However, because Derick is traveling to the USA for a conference, he asks Mr. Mensah to keep
the car in his garage until Derick returns. While the car remains in possession of Mr. Mensah,
who bears the risk?
A. Mr. Mensah
B. Derrick
C. Both Derrick and Mr. Mensah
D. Either Derrick or Mr. Mensah S.K. OFORI - 0246585860

36. Which of the following is NOT a MANDATORY element for the formation of a valid Hire
Purchase Agreement?
A. The agreement must be in writing and must be signed by the Hirer
B. The agreement must contain a statement of the cash price
C. The agreement must contain a statement of the hire purchase price.

44
D. The agreement must contain notices about the hirer's right to terminate
E. The amount of each installment payment.

37. The principle of quantum meruit allows a party to recover payment for work done under a
contract
a. True
b. False

38. Kwame and Afia, citizens of Ghana, are involved in a case related to the adoption of their
child. The courts in Ghana
a. Have concurrent jurisdiction with federal courts over this case.
b. Have original jurisdiction over this case.
c. Have exclusive jurisdiction over this ease.
d. Do not have jurisdiction for over case.

39. Kafui files a suit against Attobrah in a circuit court and loses. Kafui
a. Cannot take her case any higher in the court system.
b. Can insist that the Supreme Court hear her case.
c. Can plead her case before an appellate court
d. Can plead her case before a small claims court

40. Kwamena files a suit against Araba. If Araba fails to respond. Kwamena
a. must appeal the case to a different court. S.K. OFORI - 0246585860
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him

41. Kumah files a suit against Dadebu in a circuit court. The case proceeds to trial, after which
the court renders a verdict. The case is appealed to an appellate court. After its review of Kumah
v. Dadebu, the appellate court upholds the lower court's verdict. The appellate court has

45
a. affirmed the case.
b. reversed the case.
c. remanded the case.
d. reversed and remanded the case.

42. Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House
restaurant. Garland knowingly misrepresents a number of material features about the restaurant
and the business. When Jules discovers the truth, he can
a. Not rescind the contract because Jules assumed the risk that the bargain would prove to be
different from what he thought
b. Rescind the contract on the basis of fraud.
c. Rescind the contract on the basis of mistake.
d. Rescind the contract on the basis of undue influence.

43. Transnational Corporation and United Shipping, Inc., agree to a contract that includes an
arbitration clause. If a dispute arises, court having jurisdiction may
a. monitor any arbitration until it concludes.
b. order an arbitrator to rule in a particular way.
c. order a party to bring the dispute to court.
d. order a party to submit to arbitration.

44. To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online
dispute resolution (ODR) service. This limits these parties' recourse to the courts
a. not at all. S.K. OFORI - 0246585860
b. until the ODR service has issued a decision.
c. with respect to any dispute arising between them.
d. with respect to this dispute only.

45. Words or terms in contracts that are subject to more than one reasonable interpretation can
lead to bilateral mistakes.

46
A. True
B. False

46. A contract may not be enforceable if one party is aware that the other party made a mistake
of fact
A. True
B. False

47. Duress is a defense to the enforcement of a contract, but not a ground for rescission of a
contract
A. True
B. False

48. As a general rule, contract duties can be delegated.

A. True
B. False

49. The High court is superior to the Regional Tribunal.

A. True
B. False

50. A condition is a qualification in a contract based on a future event that is certain to occur.
A. True S.K. OFORI - 0246585860
B. False

47
THE LAW MUST APPLY REGARDLESS OF YOUR POLITICAL ALLEGIANCE OR
STATUS IN THE GOVERNMENT. WE MUST ALL BE TREATED EQUALLY BEFORE
THE LAW. – S.K. OFORI (LEADER, MASTERMINDS STUDY GROUP)

S.K. OFORI - 0246585860

48