1.Easy
In English law, a newspaper advertisement offering goods for sale at a stated price is usually:
- AA unilateral offer to all readers
- BA collateral contract with each reader
- CAn invitation to treat
- DAn acceptance of future orders
2.Easy
The rule that "consideration must move from the promisee" means:
- AThe consideration must be handed to a court
- BA person can enforce a promise only if they gave consideration for it
- CThe promisor must provide all the consideration for the promise it makes
- DThe promisee must always pay in cash
3.Easy
Under the contra proferentem rule, an ambiguous term is interpreted:
- AIn favour of the party who drafted it
- BAgainst the party who relies on it
- CIn favour of the stronger party
- DAs if it were not part of the contract
4.Medium
An unusual and onerous term in standard conditions will only be incorporated if:
- AIt appears on the back of a receipt
- BIt was fairly and reasonably brought to the other party's attention
- CIt is printed anywhere in the contract documents, however small the type
- DThe other party could have found it online
5.Medium
What is an exclusion clause?
- AA clause allowing termination at any time
- BA term that excludes third parties from the contract
- CA term that excludes a party from paying VAT
- DA term that limits or excludes one party's liability
6.Medium
A sailor is to be paid only on completing a voyage, but dies part of the way. Under the strict rule applied in Cutter v Powell:
- ANothing was recoverable for the part performed
- BThe ship owner had to pay compensation
- CThe full wages were payable
- DA proportion of the wages was payable
7.Hard
A rogue uses a stolen driving licence to take a car on written hire-purchase in another person's name. In Shogun Finance v Hudson, the majority of the House of Lords held:
- AThe contract was voidable, so a later buyer got good title
- BThe contract was valid with the rogue himself
- CThe contract was void, because the finance company dealt only with the named person
- DThe contract was void, because hire-purchase agreements must always be made face to face
8.Hard
In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:
- AVoid, because cheques cannot pay for cars
- BVoid for mistake, so the innocent buyer got no title
- CValid, and the seller could only sue the rogue in tort
- DVoidable for fraud, so the innocent buyer got good title
Answer key
- 1. C · An invitation to treat
- 2. B · A person can enforce a promise only if they gave consideration for it
- 3. B · Against the party who relies on it
- 4. B · It was fairly and reasonably brought to the other party's attention
- 5. D · A term that limits or excludes one party's liability
- 6. A · Nothing was recoverable for the part performed
- 7. C · The contract was void, because the finance company dealt only with the named person
- 8. D · Voidable for fraud, so the innocent buyer got good title
Full step-by-step solutions: practise this topic on examproblems.com.