Contract Law Principles Explained

A offers to sell his PS5 to B for £*. A and B agree that, if B does not contact A by the following Thursday, then A can assume that B has accepted the offer. Thursday passes and A claims that a contract has been formed. B refuses to pay. Which one of the following statements is true? Question * Select one: a. The Sale of Goods Act * prevents A from imposing a contract on B with silence. b. Because A and B have agreed upon the mode of acceptance, a contract of sale is formed after Thursday by B's failure to respond to A. c. A cannot impose silence on B as a means of acceptance so no contract has yet been formed. d. B's offer lapses after Thursday, so B does not have a contract with A.

Which ONE of the following statements is correct? Question * Select one: Consideration may be executed, past but not executory. Consideration may be executed , executory , but not past. Cisideration must be of equivalent value Considertaion must move from the promisor

The basic distinction between a representation and a term is that a term involves a promise to achieve a certain result, whereas a representation involves a promise to use reasonable care and skill to achieve a certain result. Question * Select one: True False

A, the owner of a vessel, enters into an agreement with a charterer, B, for the charter of the vessel. A spends money preparing the vessel before B subsequently, in breach of contract, repudiates the agreement. However, A is then immediately able to enter into a new agreement with another charterer, C, and due to an upturn in the market rate, receives a much greater profit than that which he would have received under the agreement with B. Regardless of the greater profit received, A will always be entitled to recover the wasted expenditure in reliance on the agreement with B. Question * Select one: True False

B hired A to deliver and erect a conservatory for £*,*. Midway, A informs B of potential bankruptcy and inability to finish the job. B agrees to pay A an additional £*,* if the work is completed, as she has a buyer (X) for her house who needs to move in quickly. After completing the job, A receives £*,* but claims the extra £*,*. B refuses, arguing A hasn’t provided consideration for the additional payment. The most likely true statement is: a. A was only performing his contractual duty, so he has not provided any extra consideration for the £*,*. b. A exceeded his contractual duty and is therefore entitled to the extra £*,*. c. Under Glasbrook Bros. v Glamorgan C.C.l [*] AC *, B is bound to pay the extra £*,*. d. A is probably entitled to the extra £*,* because B has derived a practical benefit from the new arrangement.

A buys a train ticket from a self-service machine. After he gets on the train, he goes to the back of the carriage and sees a small sign by the luggage storage that says: 'The train operator is not liable for any loss of property to passengers whilst travelling on this train.' Which one of the following statements is most likely to be true in relation to this exclusion clause? Question * Select one: a. The clause is not binding upon A, because it has not been incorporated into the contract. b. The clause is not binding upon A under the Sale of Goods Act Section *. c. The clause is subject to the reasonableness test under the Unfair Contract Terms Act * s. *. d. The clause is binding upon A because it has been reasonably drawn to his attention.

In which one of the following cases was it held that the contract might not be enforceable because one of the parties knew, or should have known, of the other party's mistake and failed to draw it to the other party's attention at the time when the contract was made? Question * Select one: Couturier v Hastie (*) HL Cas * Hartog v Colin & Shields [*] * All ER * Bell v Lever Bros [*] AC * Shogun Finance Ltd. v Hudson [*] UKHL *

Which one of the following statements most accurately describes the decision in Jones v Associated Tunnelling [*] IRLR *? Question * Select one: a. If a contract has been written down, then the parol evidence rule always applies, and no analysis of the circumstances is required. b. A term of contract does not have to be written down - it may be established orally or by the actions of the parties. c. A party will have a successful claim for breach of an employment contract if they are asked to work in a different location. d. All contractual obligations must be written down by the parties.

A is B's landlord. B is behind on his rent. B asks A not to bring action in return for partial payment of the rent. A accepts the partial payment and then brings the action anyway. Question * Select one: a. B does not have to pay the additional rent under the Unfair Contract Terms Act Section *. b. A has to accept the lower rent because B offered it and A accepted the payment. c. A cannot bring the action because B provided consideration. d. A can bring the action against B even though A accepted the payment because partial payment of a debt does not constitute consideration.

A false representation is a representation that is untrue according to the construction put on it by the representee. Question * Select one: True False

The doctrine of frustration cannot apply to supervening events that are foreseeable at the time at which the contract is made. Question * Select one: True False

A hired B to paint the outside walls of his house for £*,*. After completing the work, A refuses to pay due to "liquidity problems." A later wins the lottery and offers to pay B the £*,* if he also paints the window frames for an additional £*. B agrees and paints the frames, but A now refuses to pay more than the original £*,*. The most accurate legal position is: a. B is entitled to £* because he should deduct the additional £* from what was already owed. b. B is entitled to full payment (£*,* plus £*) because he exceeded his contractual duty by painting the window frames. c. B is only entitled to £*,* because otherwise A would infringe the principle incorporated in Foakes v Beer (*) * App Cas *. d. B is only entitled to £* because the previous painting of A's house is past consideration and cannot therefore be used as justification for the payment of the £*,* (see Re McArdle [*] Ch *).

Which one of the following is not a potentially frustrating event? Question * Select one: a. A ship specified in a charter party to complete a voyage within three months runs aground by reason of unforeseeable storms and is not to be ready to sail until five months later. b. A fund entered into a contract to finance the operation of a casino but, subsequently, a Money Laundering Act banned that type of contract. c. A seller is unable to fulfil a contract for sale of goods because one of his suppliers' factories has been burned down by accidental fire. d. A singer contracts bird flu and is unable to fulfil a performance contract at the fixed date for performance.

Match the relevant law report or statute with the principle of law stated. You must correctly identify all the principles for ONE mark. consideration must move from the promisee performance of an existing duty cannot count as consideration in the formation of a new contract where both parties are aware that contracts in their industry are carried out subject to a number commonly used terms, the court may imply those terms into an agreement in a sale of goods contract between two businesses the goods must be of satisfactory quality

Don’t change the words

Match the relevant law report or statute with the principle of law stated. You must correctly identify all the principles for ONE mark. consideration must move from the promisee performance of an existing duty cannot count as consideration in the formation of a new contract where both parties are aware that contracts in their industry are carried out subject to a number commonly used terms, the court may imply those terms into an agreement in a sale of goods contract between two businesses the goods must be of satisfactory quality match exactly don’t change words

For performance of an existing duty cannot count as consideration in the formation of a new contract, which of these would be the option: section *(*) Sale of Goods Act * Glassbrook Bros. v Glamorgan County Council [*] Tweddle v Atkinson section *(*) Sale of Goods Act * Re McArdle [*] British Crane Hire Corp v Ipswich Plant Hire Ltd [*]

Which one of them is the possible answer

Which one of those options matches these: in a sale of goods contract between two businesses the goods must be of satisfactory quality

A consideration for a promise is the promisee's action, inaction or a promise thereof, which induces the promise in question. Question * Select one: True False

A owes B £*,*. With the knowledge that B has run into some financial problems, A starts to pressurise B to agree to a reduction of the debt. B finally agrees to accept £*,* in full satisfaction of the debt. B receives £*,* from A and now brings an action to claim the balance. Which of the following statements most accurately summarise the legal position? [Please select all that apply.] Question * Select one or more: a. B is not entitled to the balance, because B has received some practical benefit from the payment of £*,*. b. B may be entitled to the balance if he can show that A placed him under duress to accept the lesser amount. c. B is not entitled to the balance, because B cannot revoke the promise to accept £*,* in full satisfaction of the whole debt. d. B is entitled to the balance, because B's promise is not supported by a valid consideration.

A consideration for a promise must move from someone other than the promisor, although not necessarily from the party enforcing the promise. Question * Select one: True False

Where part of the contract price is paid in advance as a deposit, the payment is normally not recoverable in the event of breach of the contract by the payor, even if the payee has not suffered any loss as a result of the breach. Question * Select one: True False

A Ltd entered a contract with B Ltd to develop software for a fixed price. Before B Ltd begins development, A Ltd cancels the contract, citing a change in business strategy. B Ltd ignores the cancellation and continues the development, but this will not enhance B Ltd's reputation. The most accurate legal positions between the parties are: a. B Ltd is bound to terminate the contract following A Ltd's anticipatory breach because B Ltd has no legitimate interest in affirming the contract and continuing its performance. b. B Ltd is entitled to the contract price because it may freely decide whether to terminate or affirm the contract following A Ltd's anticipatory breach. c. B Ltd is not entitled to the contract price because it cannot complete its performance of the contract without the cooperation of A Ltd. d. B Ltd is entitled to the contract price because its performance of the contract does not require the cooperation of A Ltd.

Is there more than one asnwer