1.Easy
A vague sales claim such as "the best coffee in the world" is usually treated as:
- AAn implied warranty of quality
- BA mere puff with no legal effect
- CA fraudulent misrepresentation
- DA condition of the contract
2.Easy
A term that the parties did not state, but which a court reads into the contract, is:
- AAn implied term
- BA collateral warranty
- CAn express term
- DA condition precedent
3.Easy
Which elements are generally needed to form a contract?
- AA payment made in advance
- BA witness for each party
- CAn offer and an acceptance, with the intention to be legally bound
- DA written document signed by both parties and certified by a notary
4.Medium
Damages for breach of contract are generally meant to:
- APut the innocent party in the position as if the contract had been performed
- BPunish the party in breach
- CGive the innocent party a profit beyond their loss
- DReturn both parties only to the position they were in before the contract was made
5.Medium
A creditor agrees to take £600 in full settlement of a £1,000 debt that is due, then sues for the other £400. Under Pinnel's Case and Foakes v Beer, the creditor:
- ACannot recover anything more
- BCan recover only if the agreement was oral
- CCan usually recover the £400
- DMust give back the £600 first
6.Medium
A builder makes a swimming pool shallower than agreed. It is still safe and no less valuable, and rebuilding would cost far more than any benefit. In Ruxley Electronics v Forsyth the owner received:
- AA full refund of the contract price
- BNothing, as there was no loss in value
- CA modest sum for loss of amenity
- DThe full cost of rebuilding the pool
7.Hard
A seller agreed to ship goods from Sudan to Hamburg. The Suez Canal was closed, so the ship had to go round the Cape of Good Hope, a much longer route. In Tsakiroglou v Noblee Thorl:
- AThe contract was not frustrated, as the longer route was not fundamentally different
- BThe contract was frustrated, as shipping via the usual Suez route had become impossible
- CThe contract was void from the start
- DThe buyer had to pay the extra freight costs
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:
- ACommercially less attractive for one party
- BDifferent from the contract in a minor detail
- CMore expensive to carry out than both parties had expected when contracting
- DImpossible or essentially different from what the parties agreed
Answer key
- 1. B · A mere puff with no legal effect
- 2. A · An implied term
- 3. C · An offer and an acceptance, with the intention to be legally bound
- 4. A · Put the innocent party in the position as if the contract had been performed
- 5. C · Can usually recover the £400
- 6. C · A modest sum for loss of amenity
- 7. A · The contract was not frustrated, as the longer route was not fundamentally different
- 8. D · Impossible or essentially different from what the parties agreed
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