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Contract Law Latest Update Test With
Complete Solution
Under English law, must a contract to sell land be in writing? - ANSWER Yes, contracts for the sale or disposition of land must be made in writing to be valid.
Must a contract of guarantee be in writing under English law? - ANSWER Yes, a contract of guarantee must be in writing and signed by the guarantor or their authorised agent.
Are consumer credit agreements required to be in writing under English law?
- ANSWER Yes, regulated consumer credit agreements must be in writing and comply with statutory formalities.
Is a contract to purchase a business required to be in writing under English law? - ANSWER No, there is no legal requirement for business purchase contracts to be in writing, though it is advisable.
Must an offer be in writing to be valid under the law of contract? - ANSWER No, an offer does not need to be in writing; it must be communicated, certain, and show an intention to contract.
Is a retailer's advertisement of goods on a website considered a legal offer? - ANSWER No, it is an invitation to treat. The customer's order constitutes the offer, which the retailer may accept or reject.
When a customer brings an item to the till in a shop, is this considered an offer? - ANSWER Yes, the customer is making an offer to buy, which the retailer can accept or reject at the point of sale.
Can an advertisement offering £50,000 to anyone who completes a challenge be a valid offer? - ANSWER Yes, this is a unilateral offer. If someone completes the specified act, the advertiser is legally bound to pay.
Is a product brochure or price list in a showroom an offer? - ANSWER No, it is an invitation to treat. It invites customers to make offers to purchase
Is a general statement of willingness to buy at list price without details an offer? - ANSWER No, it is an enquiry. It lacks certainty and key terms required to form a binding offer.
Is a prize draw offer for completing an action (e.g. test drive) a unilateral offer? - ANSWER Yes, it is a unilateral offer. Acceptance occurs through performance of the requested act.
Is a detailed proposal to buy a specified car for a named price a valid offer? - ANSWER Yes, it is an offer to form a bilateral contract that can be accepted by a promise.
What is the legal effect of a seller proposing a new price instead of accepting a buyer's offer? - ANSWER It is a counteroffer and also a rejection of the original offer.
What is the status of a counteroffer that has not yet been accepted? - ANSWER It may be revoked by the offeror before acceptance, and it also constitutes a rejection of the prior offer.
Is placing an order for goods with stated terms considered an offer? - ANSWER Yes, placing an order with specific terms is an offer to contract on those terms.
What is the legal effect of accepting an order but insisting on different
Can a creditor claim the unpaid balance if they accepted a lesser sum without new consideration? - ANSWER Yes, part payment of a debt is not valid consideration for discharging the whole debt, so the creditor can claim the balance.
Can early payment of a lesser sum be valid consideration for discharging a full debt? - ANSWER Yes, early payment can be sufficient consideration if it provides a practical benefit to the creditor.
Can giving up the right to litigate a genuine dispute serve as valid consideration? - ANSWER Yes, waiving a claim or defence in good faith is sufficient consideration to support a settlement agreement.
Can a named supplier enforce a contract made between a customer and a mechanic for the supplier's benefit? - ANSWER Yes, under the Contract (Rights of Third Parties) Act 1999, a third party can enforce a contract if it confers a benefit on them and they are expressly identified.
What legal mechanism allows a factoring company to enforce a right to collect debts assigned by another business? - ANSWER Assignment. The original creditor transfers the benefit of the contract to the assignee, who can enforce it directly.
How can an employee rely on a contractual exclusion clause in a contract between their employer and a third party? - ANSWER Under the Contracts (Rights of Third Parties) Act 1999, a third party named or intended to benefit from a contract clause can enforce it.
Can a contractor enforce a promise made by a third party who is not part of the original contract? - ANSWER No, if the third party is not a party to the contract and none of the privity exceptions apply, there is no enforceable
solution.
How can a seller enforce a contract made by an agent on behalf of a principal? - ANSWER Through agency. If an agent contracts on behalf of a disclosed principal, the principal is bound and can be sued.
Is a salesperson's assurance about a bike's suitability for rough paths a condition, warranty, or neither? - ANSWER It is a condition. The statement goes to the root of the contract and induced the purchase, making it a fundamental term.
In a commercial contract, is an agreed delivery date generally treated as a condition? - ANSWER Yes, time is presumed to be of the essence in commercial contracts, making timely delivery a condition.
Is a private seller's vague opinion about a product's suitability likely to be a term of the contract? - ANSWER No, such a statement is not a term if the seller lacks expertise and the statement is merely an opinion.
If a contractual term is labelled a "condition" but its breach may vary in seriousness, how is it treated? - ANSWER It is treated as an innominate term. The remedy depends on the seriousness of the breach and its consequences, not the label.
How can a term be expressly incorporated into a contract? - ANSWER Through reasonable notice given before or at the time of contracting.
What condition is implied into consumer contracts under the Consumer Rights Act 2015 regarding goods? - ANSWER That goods must be of satisfactory quality.
Is an exclusion clause printed on the back of a receipt or claim check given after payment binding? - ANSWER No, because the clause was introduced after the contract was formed and no reasonable notice was given.
Can a business contract exclude the implied condition of satisfactory quality under UCTA 1977? - ANSWER Yes, but only if the exclusion is reasonable under the circumstances.
Can liability for personal injury or death caused by negligence be excluded under UCTA 1977? - ANSWER No, any clause excluding liability for personal injury or death due to negligence is void.
Can standard terms exclude liability for late performance if the clause passes the reasonableness test under UCTA? - ANSWER Yes, exclusions for delay can be valid if they are reasonable, especially in business-to-business contracts.
Can a contract exclude the implied condition that the seller has good title to the goods? - ANSWER No, under UCTA 1977, such an exclusion is automatically void and cannot be justified by reasonableness.
Under the Consumer Rights Act 2015, can a trader exclude or limit the implied condition of satisfactory quality in a consumer contract? - ANSWER No, such a term is always prohibited and unenforceable.
How is an exclusion of liability for death or personal injury not caused by negligence treated under UCTA and CRA? - ANSWER Void under UCTA if for negligence; prohibited under CRA if in a consumer contract.
How is an exclusion of liability for late delivery in a B2B contract treated under UCTA? - ANSWER It is subject to the reasonableness test.
How is an exclusion of liability for defects in goods treated under UCTA and CRA? - ANSWER Subject to the reasonableness test under UCTA; prohibited under CRA if the buyer is a consumer.
How is a clause defining what a contractor is and is not required to do treated under UCTA/CRA? - ANSWER one of the above - such clauses define obligations rather than exclude liability.
Is a promise to stop complaining about the weather sufficient consideration?
- ANSWER No, it is likely illusory and lacks legal value, so it is not sufficient consideration.
Are agreements between friends presumed to be legally binding? - ANSWER No, social agreements are presumed not to be legally binding, but this can be rebutted with evidence such as a written contract.
Will courts refuse to enforce a contract simply because it is a bad bargain? - ANSWER Will courts refuse to enforce a contract simply because it is a bad bargain?
What happens if an offer specifies a particular method of acceptance? - ANSWER The prescribed method must be used unless an alternative is equally effective and not disadvantageous to the offeror.
Is leaving a voicemail sufficient acceptance if the offer required acceptance by email to a specific person? - ANSWER No, because the acceptance did not comply with the express terms of the offer, so no contract is formed.
Does reliance on an offer create a binding contract if formal acceptance requirements are not met? - ANSWER No, reliance alone does not create a contract. Valid acceptance according to the offer's terms is still required.
Is a promise to perform something in the future valid consideration in contract law? - ANSWER Yes, executory consideration (performance in the future) is valid as long as the contract is properly formed.
Can a person claim a reward if they performed the required act without knowing of the offer? - ANSWER No, a person must be aware of the offer to accept a unilateral contract by performance.
When is a unilateral contract accepted? - ANSWER When the offeree completes the act specified in the offer, provided they knew of the offer beforehand.
Can an offer in a unilateral contract be revoked after performance has begun? - ANSWER No, once performance has begun with knowledge of the offer, the offer cannot be revoked.
If a reward poster is taken down after the act is completed, does this affect the claimant's right to the reward? - ANSWER No, revocation is ineffective once performance is complete by someone aware of the offer.
Is a request for a price quotation generally considered an offer? - ANSWER No, a request for a quotation is typically an invitation to treat, not an offer.
What is the legal effect of marking an agreement "subject to contract"? - ANSWER It means the parties do not intend to be legally bound until a formal contract is signed. This overrides the usual presumption of legal intent in commercial deals.
What is an invitation to treat in contract law? - ANSWER It is an expression of willingness to negotiate, not a valid offer. It invites others to make an offer, which can then be accepted or rejected.
What terms are implied into a mixed contract for goods and installation under the Supply of Goods and Services Act 1982? - ANSWER A condition that the goods (e.g. boiler) will be of satisfactory quality, and innominate terms that the service (e.g. installation) will be carried out with reasonable care and skill, and within a reasonable time if no time is agreed.
Can the manufacturer later change the price due to a mistake in the catalogue? - ANSWER No. A unilateral mistake does not void the contract unless the buyer knew or should have known of the error.
What is a mutual mistake in contract law? - ANSWER When both parties misunderstand each other and are at cross purposes about a key term (e.g. different meanings of "container").
What is a unilateral mistake in contract law? - ANSWER When one party is mistaken and the other party knew or should have known (e.g. a bid far lower than others due to a clear error).
Is a contract void if a party agrees to pay more due to economic duress? - ANSWER No. The contract remains valid, but the modification may be voidable if obtained through bad faith pressure or illegitimate threat.
Is a contract valid if both parties mistakenly believe the subject matter still exists when it does not? - ANSWER No, it is void for mistake if the subject matter no longer exists at the time of contract (e.g. goods destroyed).
If a person is pressured by threats to sell property, is the contract valid? - ANSWER No, it is voidable for duress if the threat (e.g. to report a relationship) overbears the party's free will.
Is a contract void if both parties are mistaken about a detail that doesn't affect the essential subject matter? - ANSWER No, if the mistake is not fundamental (e.g. year of a car), the contract is valid.
Is a wife's guarantee for her spouse's loan automatically voidable for undue influence? - ANSWER No, if the spouse is financially independent and there's no pressure, the contract is valid.
performance? - ANSWER The contract is frustrated and automatically discharged. No party can sue for breach or damages, but losses are handled under the Law Reform (Frustrated Contracts) Act 1943.
