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Law - Question & Answer Test Bank
Which of the following types of contract must be in writing or evidenced in writing? A. A partnership agreement B. A contract for the sale of goods C. An agreement for the transfer of land D. An employment contract - ✔C. An agreement for the transfer of land Chapter 1 - Q Which of the following terms describes a contract where one party may set it aside, but property transferred before avoidance is usually irrecoverable from a third party? A. Void B. Voidable C. Unenforceable D. Valid - ✔B. Voidable Chapter 1 - Q Gary intends to promise Carl that he (Gary) will pay the bets owed to Carl by Duncan, in the event that Duncan fails to pay them himself. Which of the following is true with regard to Gary's proposed guarantee so that it will be enforceable in a court of law? A. It must be by deed B. It must be in writing C. It can be oral provided it is evidenced in writing D. It can be oral only - ✔C. It can be oral provided it is evidence in writing Chapter 1 - Q Denzil puts a notice in the local post office saying "Reward. Lost cavalier King Charles spaniel named Barnie. £150 reward for his safe return". Florence finds Barnie and, unaware of Denzil's notice, takes him to Denzil's home address which is inscribed on the dog's name tag. Which of the following statements best describes the legal position? A. Florence is not entitled to the reward. The offer is invalid as it is not made to an identifiable class of persons B. Florence is entitled to the reward. The offer is valid and her acceptance of the offer can be inferred from her act of returning the dog C. Florence is not entitled to the reward. She failed to claim the reward at the time of returning Barnie (and accepting Denzil's offer) and has therefore waived her right to receive it D. Florence is not entitled to the reward as she did not even know that a reward was being offered - ✔D. Florence is not entitled to the reward as she did not even know that a reward was being offered Chapter 1 - Q Clarence sells champagne and high quality wines from home. He delivers a glossy flyer to all the £1 million plus homes in the Clifton area of Bristol, offering a 1998 Chablis for
£30 a bottle. On reading his copy of the flyer, Kenton goes to Clarence's home and asks for a case of Chablis. Is the flyer issued by Clarence a valid offer? A. Yes B. No Is Clarence in breach of contract if he says to Kenton that the Chablis is out of stock and that he is unable to get hold of any more? C. Yes D. No - ✔B. No D. No Chapter 1 - Q A local newspaper advertises "50 Whizzalong scooters remaining. 3 feet high. Only £ each." Which legal term best describes the advert? A. Offer B. Statement of intention C. Invitation to treat D. Supply of information - ✔C. Invitation to treat Chapter 1 - Q All of the following, except one, have the effect of terminating an offer. Which is the exception? A. Rejection B. Counter offer C. When a pre-condition is satisfied D. A lapse of time - ✔C. When a pre-condition is satisfied Chapter 1 - Q Michael offers to sell his Laser 2000 sailing dinghy to Rupert for £1,500 , provided he gets the job for which he has just been interviewed, since that would result in him having to live somewhere too far from sailing facilities. Rupert is delighted and thinks £1,500 is an excellent price. Michael fails to get the job. What is the consequence of Michael failing to get the job? A. The offer is terminated B. The contract is rendered voidable C. The contract is rendered unconditional D. The contract is rendered unenforceable - ✔A. The offer is terminated Chapter 1 - Q On Monday, George offers to sell his piano to Hilda for £1,500 , to be delivered on Thursday. On Tuesday, Hilda replies, saying that she will only buy the piano if George will delay the delivery until the following Monday. George doesn't reply but sells his piano to Ivy on Thursday. On Friday, Hilda sees George and accepts his offer. Is there a binding contract between George and Hilda? A. Yes, Hilda's reply on Tuesday constitutes an acceptance of the offer
D. There is no contract because there is no positive act to indicate acceptance - ✔D. There is no contract because there is no positive act to indicate acceptance Chapter 1 - Q On 28 May, Abigail writes to Gill and offers to sell her all her old accountancy study manuals for £50. Gill posts a letter together with a cheque for £50 on 1 June saying that she'll pick them up on 3 June. However on 2 June, Abigail discovers that she has failed two of her papers and so sends a letter to Gill saying that the books are no longer for sale. On 3 June, each receives the other's letter. Does the letter of revocation take effect on 2 June? A. Yes B. No Does Gill's acceptance take effect on 3 June? C. Yes D. No - ✔B. No D. No Chapter 1 - Q Are the following statements true or false? Acceptance may be express or inferred from conduct. A. True B. False Acceptance must always be communicated to the offeror in order for it to be effective. C. True D. False - ✔A. True D. No Chapter 1 - Q On Monday, Peter writes to Quentin offering to sell his car to Quentin for £900. Peter's letter is received the next day. On Wednesday, Peter posts a letter to Quentin saying that he has changed his mind. Later that day, Quentin speaks to Peter and says that he accepts his offer. Is there a valid contract between Peter and Quentin? A. No, because Peter posted his revocation before Quentin accepted the offer B. Yes, because Quentin accepts the offer before he receives Peter's letter of revocation C. No, because Quentin's acceptance should have been in writing since the offer was made in writing D. Yes, because Quentin's acceptance is made in a more expeditious manner that the offer - ✔B. Yes, because Quentin accepts the offer before he receives Peter's letter of revocation Chapter 1 - Q Are the following statements true or false? An acceptance of a contractual offer sent by email takes effect as soon as the person accepting the offer presses the 'send' key. A. True B. False
Whether or not postal acceptance is within the contemplation of the parties is a question of face and may be deduced from all the circumstances. C. True D. False - ✔B. False C. True Chapter 1 - Q Are the following statements true or false? Where the offeror prescribes a mode of communication of acceptance, the offeree can normally use an alternative mode, provided it is at least as expeditious as the mode prescribed. A. True B. False Where no mode of communication of acceptance is prescribed, the offeree should use the same mode as that used for the offer. C. True D. False - ✔A. True D. False Chapter 1 - Q On 1 May, Hugh offered to sell his boat to Jeff for £5,000 , stating that his offer had to be accepted by notice in writing. Jeff posted a letter of acceptance on 3 May, but it never arrived. Does the postal rule apply ie, is the acceptance effective as soon as it is posted? A. Yes B. No Is there a contract between Hugh and Jeff? C. Yes D. No - ✔B. No D. No Chapter 1 - Q Brenda writes to Carol on 1 January offering to sell her gold necklace for £100. Carol receives the letter on 3 January and on 5 January posts a letter accepting Brenda's offer and sends a cheque for £100. In the meantime, however, Brenda has sold the necklace to her sister Daisy for £150 believing that Carol wasn't interested. She wrote to Carol telling her this on 4 January but the letter wasn't received by Carol until 6 January. Brenda received Carol's cheque on 7 January. Which of the following is true? A. Carol's acceptance is effective on 5 January B. Brenda's offer is revoked on 4 January C. Carol's acceptance is effective on 7 January D. There is no binding agreement between Brenda and Carol - ✔A. Carol's acceptance is effective on 5 January Chapter 1 - Q With regard to the terms of a contract, answer the following:
The payment of £1 per year as rent for a house A. Yes B. No A promise by Adam not to pursue his action for breach of contract against Ben, if Ben agrees to do Adam's accounts for him for 12 months without charge C. Yes D. No - ✔A. Yes C. Yes Chapter 1 - Q Zoe was employed to give one lunchtime recital per month at a prestigious eating venue in London. Her contract contained a provision that she would stay behind and meet with appreciative members of the audience after the recital, as part of the venue's aim of making music more accessible and less elitist. After about 18 months, Zoe's recitals had become very popular but she was always keen to get away quickly after each performance. The manager offered her £50 (on top of her recital fee) if she would stay behind and meet with appreciative members of the audience for up to an hour after each recital. Can Zoe enforce the promise to pay her the extra £50? A. Yes. It is a fresh promise that the manager chose to make B. Yes, because the contractual provision had become redundant through its non- observance C. No, because she was obliged to perform that duty anyway D. No. It was simply a goodwill gesture and is not intended - ✔C. No, because she was obliged to perform that duty anyway Chapter 1 - Q Zak owes Eve £100. Finding that he has insufficient cash, Zak offers Eve his bicycle worth £90 instead. Eve accepts. Which of the following statements best describes the legal position as to whether there is valid consideration? A. Yes, Eve was not already entitled to the bicycle so it is sufficient consideration for waiver of the debt B. No, he bicycle is not sufficient as it does not match or exceed the value of the debt C. No, consideration must be in money or money's worth D. Yes, a bicycle constitutes sufficient consideration because it has an identifiable value
- ✔A. Yes, Eve was not already entitled to the bicycle so it is sufficient consideration for waiver of the debt Chapter 1 - Q In which of the following scenarios is there insufficient consideration for a waiver of rights by Oscar where Humphrey owes him £1,000 to be paid on 13 May? A. Oscar agrees to accept a car instead B. Oscar agrees to accept £980 on 13 May in cash C. Oscar agrees to accept £980 from Humphrey's sister in full satisfaction of the debt D. Humphrey agrees to pay Oscar £700 on 1 May - ✔B. Oscar agrees to accept £980 on 13 May in cash Chapter 1 - Q With regard to terms being implied into contracts, are the following true or false?
The courts will imply a terms into a contract if required to do so by statute. A. True B. False Terms may be implied on the basis of a custom or practice of a particular trade. C. True D. False - ✔A. True C. True Chapter 1 - Q Prunella agrees to pay Paul £500 if Paul will landscape Phillip's garden. There is no agency relationship and the Contract (Rights of Third Parties) Act 1999 does not apply. Who may enforce the terms of the contract? A. Prunella, Paul and Phillip B. Prunella and Phillip only C. Paul and Phillip only D. Prunella and Paul only - ✔D. Prunella and Paul only Chapter 1 - Q In relation to the intention to create legal relations: The parties to social or domestic agreement are presumed to have intended the agreement to be legally enforceable, although this intention is rebuttable. A. True B. False The parties to a commercial agreement are presumed to have intended the arrangement to be legally enforceable. C. True D. False - ✔B. False C. True Chapter 1 - Q On Monday, Andrew advertised his car for sale for £5,000 in a local newspaper. Brian saw the advertisement and telephoned Andrew offering him £4,500 for the car. Andrew eventually offered to sell the car to Brian for £4,800. Brian replied that he would need to test-drive the car before he could agree such a price. Brian then agreed a time to meet at Andrew's house the following weekend for the test drive. On Friday, Andrew sold his car to his neighbour Carol for £4,500. Are the following statements true or false? Andrew's advertisement in the newspaper is purely an invitation to treat and as such is incapable of acceptance and forming a legally binding contract. A. True B. False Brian has no right of action against Andrew because no acceptance took place. C. True D. False - ✔A. True C. True
C. Yes D. No - ✔B. No C. Yes Chapter 1 - Q Are the following statements true or false? To be effective, a revocation of an offer must be made in writing. A. True B. False To be effective, a revocation can be made by an authorised agent of the offeror. C. True D. False - ✔B. False C. True Chapter 1 - Q Raheem is visiting Karl's office. Whilst he is there he sees a photocopier that Karl no longer needs. Raheem offers Karl £500 for the photocopier and Karl accepts. Raheem pays Karl, loads the photocopier into his van and drives away. Which type of consideration is present in the contract between Raheem and Karl? A. Past B. Executed C. Executive D. Executory - ✔B. Executed Chapter 1 - Q Which of the following statements correctly describes privity of contract? A. Individuals and businesses only have rights and obligations under a contract if they are a party to it B. To be valid, contracts must contain agreement, consideration and intention to create legal relations C. Consideration must be sufficient but need not be adequate D. Contractual terms are a private matter to be decided by the contracting parties - ✔A. Individuals and businesses only have rights and obligations under a contract if they are a party to it Chapter 1 - Q Which term best describes a contract, such as a building contract, that provides for payment at various stages of the contractor's progress? A. A divided contract B. A segmented contract C. A severable contract D. A partial contract - ✔C. A severable contract Chapter 2 - Q Abigail agrees to let her flat to Xavier for one day for the purpose of viewing a carnival. Xavier pays her a £50 deposit with £80 due to be paid at the end of the carnival. Die to civil unrest, the government prohibits all street entertainment and the carnival is
cancelled just before Xavier is due to travel to the flat. Neither party has incurred any costs (save for payment of the deposit) in performance of the contract. Applying the Law Reform (Frustrated Contracts) Act 1943, which of the following statements is correct? A. Abigail can keep the deposit but cannot claim the balance B. Abigail can keep the deposit and Xavier is liable to pay the balance C. Abigail must pay back the deposit and Xavier need not pay the balance D. Abigail can keep the deposit and Xavier must pay an additional £15 so that each party bears an equal loss - ✔C. Abigail must pay back the deposit and Xavier need not pay the balance Chapter 2 - Q Are the following statements true or false? Anticipatory breach may be implied from conduct and need not be explicit. A. True B. False Where an innocent party elects to treat a contract as discharged, they waive the right to claim damages from the party in default. C. True D. False - ✔A. True D. False Chapter 2 - Q Monster Mowers Ltd agrees to sell one of its ride-on mowers to Geoff in the knowledge that Geoff is taking on new customers from Percy, a commercial gardener, who is retiring and that Geoff is unable to cope with the increased workload with his present mower. The company fails to deliver the mower until 10 days after the due date for delivery and Geoff is forced to continue working with his old mower as best he can. As a result he is unable to complete all the contracts he has agreed with Percy's old customers. He is also unable to accept an offer from the local botanical gardens to be their grass-cutting contractor for the next 12 months because he cannot begin work immediately. Which of the following statements best describes the legal position of Monster Mowers Ltd? A. The company would be entitled to assume that Geoff could perform his contracts without the new mower and will not be liable for damages as a result - ✔C. The company will be liable for damages in respect of breaches of Geoff's contracts with all his customers but not in respect of the botanical gardens' potential contract as this was not a normal loss and the company was not aware of it Chapter 2 - Q Are the following statements true or false? Damages for breach of contract are primarily intended to restore the injured party to the same position they were in at the time when the contract was made. A. True B. False The claimant is required to take every opportunity to mitigate their loss arising as a consequence of a breach of contract. C. True D. False -
A. Specific performance is awarded at the discretion of the court where damages would not be an adequate remedy B. Specific performance is likely to be more appropriate than damages in a contract involving personal services C. Specific performance is likely to be awarded in a contract for the sale of land D. A mandatory injunction often has the same result as specific performance but is less common - ✔B. Specific performance is likely to be more appropriate than damages in a contract involving personal services Chapter 2 - Q Colin was engaged as a coach of the South of England Athletics Squad (SEAS) and his contract contained a clause that he would not coach any other team without the consent of the SEAS. The SEAS management discovered that unknown to them, he had in fact been coaching the South Wales team for three months and brought action against him for breach of contract. Which of the following is the most likely remedy to be granted in addition to possible damages? A. A mandatory injunction B. A quantum meruit award C. Specific performance D. A prohibitory injunction - ✔D. A prohibitory injunction Chapter 2 - Q The Unfair Contract Terms Act 1977 renders some exclusions void and other subject to the reasonableness test: In a contract between two businesses, is a clause which limits liability for losses due to negligence void, however reasonable it might appear? A. Yes B. No Is a clause limiting liability for personal injury resulting from negligence in a contract between two private individuals subject to the reasonableness test? C. Yes D. No - ✔B. No D. No Chapter 2 - Q Which of the following descriptions best describes the statutory test of reasonableness under the Unfair Contract Terms Act 1977? A. Whether an ordinary person in the normal course of business would consider the clause to be reasonable in all the circumstances B. Whether it is fair and reasonable, with regard to all the circumstances which were, or which ought to have been known to the parties when the contract was made C. Whether it is fair and reasonable with regard to all the circumstances which were known to or in the reasonable contemplation of the parties D. Whether it is fair and reasonable to exclude liability, having regard to the relative bargaining strengths of the parties -
✔B. Whether it is fair and reasonable, with regard to all the circumstances which were, or which ought to have been known to the parties when the contract was made Chapter 2 - Q Foul Foods Ltd, a company specialising in the production and sale of cream cakes on an industrial scale, bought a large oven from Ovens & Co intending to extend their existing business to include the production of pizza bases. The delivery of the oven was three months later than the contract date. During those three months Foul Foods Ltd tried unsuccessfully to buy another oven. Foul Foods Ltd has claimed for its lost profits in the following two ways:
- Profits which would have been made from the expected increase in business following their increased capacity; and
- Profits which they would have made from a lucrative contract for the supply of pizza bases to a nationwide supermarket chain for which they would have been able to bid. Is Foul Foods Ltd's claim for its lost profits likely to be successful? A. Yes, but only the lost profits from the expected general increase in trade are recoverable, not those from th - ✔A. Yes, but only the lost profits from the expected general increase in trade are recoverable, not those from the loss of the lucrative supermarket contract Chapter 2 - Q The equitable remedy of specific performance can be awarded in cases involving: The performance of personal services A. True B. False A contract to build a house C. True D. False - ✔B. False D. False Chapter 2 - Q Which of the following may be used to resolve disputes, even after court proceeding have been commenced?
- Negotiation
- Expert determination
- Mediation
- Adjuducation A. 1 only B. 2 + 3 + 4 C. 1 + 4 D. All of them - ✔D. All of them Chapter 2 - Q Some situations will cause a contract to be discharged by frustration. A manor house which was hired for a wedding reception is destroyed by fire a week before the wedding. Is this contract discharged by frustration? A. Yes B. No
Is Lady Grey bound to settle the invoice? C. Yes D. No - ✔A C Chapter 3 - Q Stephen lives near an isolated headland in Cornwall. One day, he sees a Rolls Royce parked on the beach. No one is in sight but the tide is coming in rapidly. Stephen calls his neighbour and arranges for him to come and tow the Rolls Royce up the beach to safety. The neighbour is happy to oblige but wants payment for what he has done. When the owner, Anthony, returns, he refuses to pay because he says the action was not necessary. Which of the following best describes the legal position? A. An agency of necessity has arisen because Stephen is unable to contact Anthony. B. An agency of necessity has arisen because there is an emergency situation and a pressing need for action. C. No agency of necessity has arisen because the Rolls Royce is not a perishable good and Stephen's action was not reasonable. D. No agency of necessity has arisen because there is no pre-existing contractual relationship between Stephen and Ant - ✔D Chapter 3 - Q Preparing for her 40th birthday party, Scarlett went into Choice Wines and ordered three cases of pinot noir, saying that she was buying them in her capacity as agent for Dame Hilda, a well-known celebrity who lived in the same village and who was planning a summer ball in the grounds of her country house. Choice Wines supplied the wine and then invoiced Dame Hilda. Is there an agency by holding out or estoppel? A. Yes B. No Can Choice Wines demand payment from Dame Hilda? C. Yes D. No - ✔B D Chapter 3 - Q Andrea purchases 10 watercolour painting from an artist, Ross, for her employer, the Earl of Somerset, even though he has told her not to buy any more watercolours on his behalf but to concentrate on pastels. When the artist learns this, he demands their return as he had no wish for his work to hang in Andrea's terraced home in Bridgwater. However, the Earl of Somerset had come to like them after seeing them on Andrea's walls and refused the artist's demand for their return, sending him a cheque instead. Does the Earl of Somerset's action amount to ratification of the contract? A. Yes B. No Is the artist able to insist on the return of the watercolour paintings?
C. Yes D. No - ✔A D Chapter 3 - Q Are the following statements true or false? On ratification of an agent's contract by a principal, the third party may then choose whether to enforce the contract against the agent or the principal. A. True B. False Ratification can only validate an agent's past acts and will not endow any future authority. C. True D. False - ✔B C Chapter 3 - Q Frank acts as an agent for Marilyn, purchasing silk nightwear from a number of different suppliers. Sometimes the suppliers pay a commission on orders placed with them by Frank on behalf of Marilyn. Frank regards the commissions as a perk of the job and keeps them. Which of the following best describes the legal position? A. The commissions are regarded as bribes and Marilyn should report Frank to the police. B. Marilyn may dismiss Frank and recover the amount of commissions retained by him. C. Commissions are customarily retained by an agent as part of his remuneration and so Frank has no liability in respect of them. D. Marilyn can take action against the suppliers for directing the commissions to Frank instead of her. - ✔B Chapter 3 - Q With regard to the duties owed by an agent: Is an agent entitled to delegate the tasks that they are appointed to undertake, as they see fit? A. Yes B. No Is an agent at liberty to reveal details about their principal discovered during the course of the agency relationship, once that relationship has ended? C. Yes D. No - ✔B D Chapter 3 - Q Brian has just terminated his appointment of Livvi, who has been his agent for the past six months. The written contract of agency did not mention anything about remuneration and Brian relies on this when he refuses to pay her in respect of her services. He does,
requiring valeting services from Fastfleet Ltd. Kelvin and Oscar have now discovered that Barry has just entered into a contract with Fastfleet Ltd to service all Suresend's delivery vans and lorries. Kelvin and Barry do not wish Suresend Ltd to proceed with this contract with Fastfleet Ltd and claim that Barry had no authority to enter into the contract and have written to Fastfleet to this effect. Which of the following best describes the legal position? A. Suresend is not bound because it provided written revocation of the authority given to Barry. B. Suresend is not bound because Barr - ✔C Chapter 3 - Q Are the following statements true or false in connection with agency by estoppel? The third party must show that they have relied on a representation that the contracting party was acting as agent for their principal. A. True B. False It is not necessary to show that the claimant's loss was cause by their reliance on the representation. C. True D. False - ✔A D Chapter 3 - Q Are the following statements true or false? For an agency by estoppel to arise, there must be a pre-existing agency relationship between the principal and the agent. A. True B. False When an individual revokes the authority of their agent they should inform the third parties, who regularly deal with the agent, of the change in circumstances in order to prevent the former agent having any continuing authority to act on their behalf. C. True D. False - ✔B C Chapter 3 - Q Roz works in the accounts department of Bizzy Lizzy, a successful florist's business. The principal owner of the business, Vincent, was due to visit a specialist rose grower on the Isles of Scilly but was unable to go due to illness. Vincent asked Roz to go along instead. He telephoned the rose grower to say that his buying partner would be taking his place. Roz ordered 500 roses for Bizzy Lizzy. Which of the following best describes the legal position? A. Roz had ostensible authority to order the roses. B. Roz had implied authority to order the roses. C. Roz had express authority to order the roses. D. Roz had no authority to order the roses. -
✔A
Chapter 3 - Q Annabel is Phil's agent. She enters into a contract with Tim, within her authority, expressly describing herself as an agent for Phil. Can Annabel be liable on this contract with Tim? A. Yes B. No If Annabel enters into a contract, saying that she is acting as agent but without actually naming Phil as her principal, does that mean that Phil not be liable on the contract? C. Yes D. No - ✔A D Chapter 3 - Q Ashley is Phyllis's agent and enters into a contract for the purchase of a vintage car from Vince, as instructed by Phyllis. Vince does not know that Ashley is buying the car for Phyllis, at the time of entering into the contract, but discovers this to be the case one week later. If Vince then defaults on the sale, can Phyllis take action on the contract? A. Yes B. No If Phyllis defaults on the purchase, can Vince take action on the contract? C. Yes D. No - ✔A C Chapter 3 - Q Walter enters into a contract for the purchase of a barge from Barney. He is actually buying it for Natalie, although Barney does not know that Walter is buying it for anybody else (not that it would have made any difference to him). When the date for payment arrives, Walter is unable to pay for the barge and tells Barney that he was actually buying it for Natalie anyway. Is the contract enforceable against Natalie? A. Yes B. No Is the contract enforceable against Walter? C. Yes D. No - ✔A C Chapter 3 - Q Martha tells John that she wants to buy one of his horse sculptures on behalf of her grandmother, Lady Reynolds. In fact, Lady Reynolds has not asked her to do so. Three months later, John contacts Lady Reynolds to say that he has completed a bronze stallion and it is ready for collection on the payment of £10,000. Lady Reynolds denies all knowledge of it and refuses to pay.
