1.Easy
Minors (under 18) entering contracts are generally:
- ABound in exactly the same way as adults, unless their parents object in writing
- BNever able to make any contract
- CLiable only if their parents sign too
- DProtected, so many of their contracts are not enforceable against them
2.Easy
In England and Wales, a claim for breach of a simple (non-deed) contract must usually be brought within:
- ASix years of the breach
- BOne year of the breach
- CTwelve years of the breach
- DThree months of the breach
3.Easy
According to Derry v Peek, a misrepresentation is fraudulent if the maker:
- AKnew it was false, did not believe it, or was reckless whether it was true
- BMade it in a written document
- CMade a profit from the contract that followed
- DMade it carelessly and without checking the facts, though honestly believing it
4.Medium
A contract made under duress may be:
- ATurned into a criminal offence only
- BAvoided (set aside) by the pressured party
- CAutomatically valid with no remedy
- DEnforced against the pressured party in every case
5.Medium
A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:
- AA breach of an implied condition of quality
- BA misrepresentation, because he should have corrected the statement
- CA mere opinion about future income
- DNot a misrepresentation, because the statement was true when it was made
6.Medium
A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:
- ABinding from the second night onwards
- BPart of the contract, because hotels may exclude liability
- CNot part of the contract, because it came after formation
- DPart of the contract, because she stayed in the room
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 frustrated, as shipping via the usual Suez route had become impossible
- BThe contract was not frustrated, as the longer route was not fundamentally different
- CThe buyer had to pay the extra freight costs
- DThe contract was void from the start
8.Hard
In English law, a presumption of undue influence typically arises when:
- AAny contract is made between members of a family
- BThere is a relationship of trust and confidence and a transaction that calls for explanation
- CThe price agreed is substantially lower than the market price, whatever the relationship of the parties
- DAny customer signs a contract with a bank
Answer key
- 1. D · Protected, so many of their contracts are not enforceable against them
- 2. A · Six years of the breach
- 3. A · Knew it was false, did not believe it, or was reckless whether it was true
- 4. B · Avoided (set aside) by the pressured party
- 5. B · A misrepresentation, because he should have corrected the statement
- 6. C · Not part of the contract, because it came after formation
- 7. B · The contract was not frustrated, as the longer route was not fundamentally different
- 8. B · There is a relationship of trust and confidence and a transaction that calls for explanation
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