Ch8 Intention to create legal relations Test Bank Docx - Test Bank | Law of Contract 2e Smith & Davies by JC Smith, Paul S. Davies. DOCX document preview.
Type: true-false
Title: Chapter 08 - Question 01
01) The court will generally look at what the parties actually intended in assessing whether an agreement was meant to be legally binding or not.
a. True
b. False
Type: multiple response question
Title: Chapter 08 - Question 02
02) Why are domestic agreements presumed not to be legally binding? Please select all that apply.
a. The trivial nature of many domestic arrangements means the courts are ill-suited to their investigation
b. Domestic and social promises should not be subject to an intrusive legal process.
c. If domestic promises could lead to legally binding contracts, the courts might be overwhelmed by excessive litigation.
d. The parties in domestic agreements rarely provide the consideration necessary to form a contract.
Type: multiple response question
Title: Chapter 08 - Question 03
03) Which of the following agreements is least likely to be recognised by the courts as being legally binding? Please select all that apply.
a. A post-nuptial agreement to split marital assets evenly in the event of divorce.
b. An agreement to purchase and share a house together where it was necessary for both parties to dispose of their individual properties in order to afford the arrangement.
c. An agreement between family members involved in a lottery syndicate to split any winnings between them.
d. An agreement between spouses that one party should pay the other a monthly sum for maintenance.
Type: true-false
Title: Chapter 08 - Question 04
04) The burden of rebutting the presumption that legal intentions are intended in commercial transactions lies with the party who denies that any legal effect was intended.
a. True
b. False
Type: multiple choice question
Title: Chapter 08 - Question 05
05) Harambe Zoo decides to run a promotion offering commemorative gorilla coins with every purchase of a pair of entry tickets. Much to their horror, they soon learn that purchase tax will be imposed on the coins since visitors are deemed to have entered a contract of sale of the coins. The Zoo contends that the coins are meant as gifts and are thus exempt from the tax. Will their argument succeed?
a. Yes, since a reasonable person who visited the zoo would not have intended to be bound by a contract.
b. No, because the offer of free coins can properly be regarded as a business matter.
c. No, since the visitors to the zoo were not bona fide purchasers for value of the coins.
d. None of the options provided are correct.
Type: true-false
Title: Chapter 08 - Question 06
06) An agreement that states it shall not be enforced by the courts will always be void as contrary to public policy.
Inorrect
a. True
b. False
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Test Bank | Law of Contract 2e Smith & Davies
By JC Smith, Paul S. Davies