Try 5 free practice questions with instant feedback. See how ready you are.
Question 1
What are the four essential elements required to form a legally enforceable contract?
Answer: Offer, acceptance, consideration, and legal capacity (competent parties). Without all four elements, a contract is not legally enforceable.
Question 2
What is 'consideration' in the context of a construction contract?
Answer: Consideration is something of value exchanged by both parties, such as the owner's promise to pay money in exchange for the contractor's promise to perform work.
Question 3
What is a 'unilateral contract' in construction?
Answer: A unilateral contract is one where only one party makes a promise, such as an owner promising to pay a bonus if the contractor finishes early; acceptance occurs through performance.
Question 4
What does the Statute of Frauds require regarding construction contracts?
Answer: The Statute of Frauds requires that contracts that cannot be performed within one year must be in writing and signed to be enforceable.
Question 5
What is the difference between a void contract and a voidable contract?
Answer: A void contract has no legal effect from the start (e.g., for an illegal purpose), while a voidable contract is valid but can be cancelled by one party (e.g., signed under duress).