1.Easy
The duty to mitigate loss means that a claimant:
- ACannot recover for losses they could reasonably have avoided
- BMust sue within one month of the breach
- CMust prove the breach was deliberate
- DMust accept any offer made by the party in breach
2.Easy
An offer with no stated time limit lapses:
- AAt midnight on the day it is made
- BNever, unless revoked
- CAfter exactly seven days
- DAfter a reasonable time
3.Easy
What is the most common remedy for breach of contract?
- AAutomatic transfer of all the defendant's assets
- BA fine paid to the state
- CDamages
- DImprisonment
4.Medium
Promissory estoppel can prevent a party from:
- AGoing back on a promise not to enforce strict legal rights, when the other relied on it
- BSuing for any breach at all, including breaches entirely unrelated to the promise that it made
- CEntering into future contracts
- DMaking any new promises
5.Medium
A court will imply a term in fact into a commercial contract only if:
- AIt would be reasonable and fair to both parties, even if it is not necessary
- BIt is necessary for business efficacy or so obvious it goes without saying
- CIt is usual in contracts in other industries
- DIt would benefit the weaker party
6.Medium
A supplier receives a draft agreement, never signs or returns it, but both sides trade on its terms for years. A court is likely to find:
- ANo contract, because nothing was signed
- BA contract accepted by conduct
- CA contract only for the first delivery
- DA void agreement for lack of certainty
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 buyer had to pay the extra freight costs
- BThe contract was frustrated, as shipping via the usual Suez route had become impossible
- CThe contract was not frustrated, as the longer route was not fundamentally different
- DThe contract was void from the start
8.Hard
A council invites tenders by a deadline. A club submits on time, but the council wrongly treats it as late and ignores it. In Blackpool and Fylde Aero Club v Blackpool BC, the Court of Appeal held:
- AThe club could only claim in tort for negligence
- BThere was no obligation of any kind, as an invitation to tender is only an invitation to treat
- CThe council breached an implied contract to consider conforming tenders
- DThe council was obliged to accept the club's tender
Answer key
- 1. A · Cannot recover for losses they could reasonably have avoided
- 2. D · After a reasonable time
- 3. C · Damages
- 4. A · Going back on a promise not to enforce strict legal rights, when the other relied on it
- 5. B · It is necessary for business efficacy or so obvious it goes without saying
- 6. B · A contract accepted by conduct
- 7. C · The contract was not frustrated, as the longer route was not fundamentally different
- 8. C · The council breached an implied contract to consider conforming tenders
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