NCA Contracts Practice Questions - NCA Canadian Contract Law Examination Exam - NCA Contracts Practice Questions - NCA Canadian Contract Law Examination Exam

Question 1

A hardware store displays a chainsaw in its window with a price tag of $199. A customer enters, points to the chainsaw, and says, "I accept your offer to sell it for $199." The store refuses to sell. Applying the Canadian common law on display of goods, what is the correct characterization of the price-tagged display?

An invitation to treat, so no contract was formed by the customer's words A binding offer that the customer accepted, forming a contract A unilateral offer accepted by the customer's conduct in pointing A counter-offer that the store was bound to honour

Correct Answer:

An invitation to treat, so no contract was formed by the customer's words

Question 2

A company advertises a smoke ball, promising to pay £100 to anyone who uses it as directed and still catches influenza, and states it has deposited funds in a bank to show its sincerity. A purchaser uses the ball as directed and catches influenza. The company argues there was no contract because the advertisement was a mere puff and no acceptance was communicated. Which analysis is correct?

The advertisement was an invitation to treat, so the purchaser made the only offer The advertisement was a unilateral offer accepted by performance, and notification of acceptance was not required No contract formed because the purchaser never communicated acceptance before performing The deposit of funds was irrelevant and the promise was an unenforceable gratuitous statement

Correct Answer:

The advertisement was a unilateral offer accepted by performance, and notification of acceptance was not required

Question 3

A seller emails an offer to sell equipment for $50,000. The buyer replies, "I accept, provided you include free delivery and a 12-month warranty." The seller does not respond. Has a contract formed on the original terms?

Yes, because the buyer used the word 'accept' Yes, because silence by the seller amounts to acceptance of the new terms No, because the buyer's reply was a counter-offer that rejected and destroyed the original offer No, because offers can never be accepted by email under Canadian law

Correct Answer:

No, because the buyer's reply was a counter-offer that rejected and destroyed the original offer

Question 4

An offeror mails an offer on Monday. The offeree posts a properly addressed and stamped letter of acceptance on Wednesday. The offeror mails a revocation on Tuesday that reaches the offeree on Thursday, after the acceptance was posted. Under the traditional postal acceptance rule, when did acceptance take effect?

When the offeror actually received the acceptance letter When the offeree read the offeror's revocation on Thursday No contract formed because the revocation was sent first When the offeree posted the acceptance letter on Wednesday

Correct Answer:

When the offeree posted the acceptance letter on Wednesday

Question 5

An uncle promises his nephew, "If you stop smoking until you turn 21, I will pay you $5,000." The nephew refrains from smoking for the agreed period. The uncle dies and his estate refuses to pay, arguing the nephew suffered no real detriment and gave nothing of economic value. Is there consideration?

Yes, because the nephew gave up a legal freedom he was otherwise entitled to exercise No, because abstaining from smoking benefits the nephew and is not a detriment No, because consideration must always be money or goods Yes, but only because the promise was made in writing

Correct Answer:

Yes, because the nephew gave up a legal freedom he was otherwise entitled to exercise

Question 1

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Prepare with the NCA Contracts Practice Questions - NCA Canadian Contract Law Examination Exam practice quiz. This question bank includes 100 questions covering contract, party, buyer, court, and clause. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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NCA Contracts Practice Questions - NCA Canadian Contract Law Examination Exam

This practice set contains 100 questions from the matching question bank and focuses on contract, party, buyer, court, and clause. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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NCA Contracts Practice Questions - NCA Canadian Contract Law Examination Exam

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