1.Easy
According to Derry v Peek, a misrepresentation is fraudulent if the maker:
- AMade it in a written document
- BMade a profit from the contract that followed
- CMade it carelessly and without checking the facts, though honestly believing it
- DKnew it was false, did not believe it, or was reckless whether it was true
2.Easy
In English law, a promise made in a deed is enforceable even without:
- AWriting
- BA signature
- CConsideration
- DDelivery of the deed
3.Easy
The duty to mitigate loss means that a claimant:
- AMust accept any offer made by the party in breach
- BMust prove the breach was deliberate
- CCannot recover for losses they could reasonably have avoided
- DMust sue within one month of the breach
4.Medium
Under EU consumer law, a consumer who buys online usually has the right to withdraw within:
- A3 days, only with a reason
- B14 days without giving a reason
- CNo time, because online sales are final
- D30 days, only if the goods are defective
5.Medium
An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:
- AWhen it is sent by the offeree
- BWhen it is received by the offeror
- CWhen the offeror reads it a week later
- DWhen it is confirmed by post
6.Medium
Frustration of contract occurs when:
- AOne party regrets the bargain
- BAn unforeseen event makes performance impossible or radically different
- CThe contract was badly drafted
- DPerformance becomes more expensive or more difficult than either party expected
7.Hard
A seller quotes on its terms with a price variation clause. The buyer orders on its own terms without that clause, with a tear-off acknowledgement slip, which the seller signs and returns. In Butler Machine Tool v Ex-Cell-O, the contract was on:
- AA mixture of terms chosen by the court as fair
- BThe buyer's terms, because the seller accepted its counter-offer
- CThe seller's terms, because it sent its terms and price variation clause first
- DNo terms, because there was no contract
8.Hard
In Great Peace Shipping v Tsavliris Salvage, the Court of Appeal held that a contract is void for common mistake only if the mistake makes performance:
- AMore expensive to carry out than both parties had expected when contracting
- BImpossible or essentially different from what the parties agreed
- CDifferent from the contract in a minor detail
- DCommercially less attractive for one party
Answer key
- 1. D · Knew it was false, did not believe it, or was reckless whether it was true
- 2. C · Consideration
- 3. C · Cannot recover for losses they could reasonably have avoided
- 4. B · 14 days without giving a reason
- 5. B · When it is received by the offeror
- 6. B · An unforeseen event makes performance impossible or radically different
- 7. B · The buyer's terms, because the seller accepted its counter-offer
- 8. B · Impossible or essentially different from what the parties agreed
Full step-by-step solutions: practise this topic on examproblems.com.