1.Easy
A shop displays a jacket with a price tag in its window. In English law this is usually:
- AAn acceptance
- BAn invitation to treat
- CA unilateral contract
- DA binding offer to sell at that price
2.Easy
Which statement about silence as acceptance is correct in general?
- ASilence always counts as acceptance
- BSilence counts as acceptance if the offeror says so
- CSilence counts as acceptance after 24 hours
- DSilence usually does not count as acceptance
3.Easy
Rescission of a contract means:
- AOrdering a party to perform as promised
- BSetting the contract aside so the parties return to their original positions
- CCorrecting the wording of a written contract
- DEnding the contract for the future only and claiming damages for lost profits
4.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:
- AThe full wages were payable
- BThe ship owner had to pay compensation
- CNothing was recoverable for the part performed
- DA proportion of the wages was payable
5.Medium
In English law, the "postal rule" means an acceptance sent by post takes effect:
- AWhen the letter is read
- BWhen the letter arrives
- CWhen the letter is posted
- DWhen the offeror replies
6.Medium
Under UCTA 1977, a business-to-business clause excluding liability for property damage caused by negligence is valid:
- AAlways, because businesses can bargain freely
- BOnly if it satisfies the requirement of reasonableness
- CNever, in any circumstances
- DOnly if signed by a company director
7.Hard
An innocent party who terminates a contract for repudiatory breach must generally:
- AWait for a court order before stopping performance
- BPay a penalty to the party in breach
- CClearly communicate the decision to accept the repudiation
- DContinue performing until the contract ends naturally on its agreed date
8.Hard
A chartered ship is returned late, and the owner loses a very profitable follow-on charter. In The Achilleas, the House of Lords held the charterer was liable:
- AOnly for the market rate difference during the overrun period
- BFor punitive damages, because the delay was deliberate
- CFor no loss, because late return is not a breach
- DFor the whole profit lost on the follow-on charter, as it was foreseeable
Answer key
- 1. B · An invitation to treat
- 2. D · Silence usually does not count as acceptance
- 3. B · Setting the contract aside so the parties return to their original positions
- 4. C · Nothing was recoverable for the part performed
- 5. C · When the letter is posted
- 6. B · Only if it satisfies the requirement of reasonableness
- 7. C · Clearly communicate the decision to accept the repudiation
- 8. A · Only for the market rate difference during the overrun period
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