1.Easy
A counter-offer has which effect on the original offer?
- AIt accepts the original offer
- BIt makes the original offer irrevocable
- CIt has no effect at all
- DIt rejects and ends the original offer
2.Easy
Anticipatory breach occurs when:
- AA party shows, before performance is due, that it will not perform
- BAn expert predicts, before performance is due, that a party will probably breach
- CA party performs earlier than the agreed date
- DA party breaches a term that has not yet been agreed
3.Easy
Who can usually enforce a contract?
- AThe parties to the contract
- BOnly the state
- CAnyone who hears about it or is affected by it
- DOnly lawyers
4.Medium
A misrepresentation is:
- AAn opinion that turns out to be wrong
- BA false statement of fact that induces someone to enter a contract
- CSilence about any fact at all
- DA promise about future behaviour that is not kept, even if honestly 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:
- ACan recover only if the agreement was oral
- BCannot recover anything more
- CCan usually recover the £400
- DMust give back the £600 first
6.Medium
Sailors are promised extra wages for sailing a ship home after two crew members desert, but they do no more than their contract already required. In Stilk v Myrick the promise was:
- AUnenforceable because it was made at sea
- BEnforceable as a practical benefit
- CUnenforceable for lack of consideration
- DEnforceable because the captain agreed freely
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 void, because the finance company dealt only with the named person
- BThe contract was voidable, so a later buyer got good title
- CThe contract was valid with the rogue himself
- DThe contract was void, because hire-purchase agreements must always be made face to face
8.Hard
A posts an offer. A week later A posts a revocation. B receives the offer and immediately accepts by telegram, and only later receives the revocation. Applying Byrne v Van Tienhoven:
- AA contract was made only when B received the revocation
- BA contract was made when B accepted, because the revocation had not yet arrived
- CThere was no contract, because the revocation was posted before B's acceptance was sent
- DThere was no contract, because offers by post can be revoked at any time
Answer key
- 1. D · It rejects and ends the original offer
- 2. A · A party shows, before performance is due, that it will not perform
- 3. A · The parties to the contract
- 4. B · A false statement of fact that induces someone to enter a contract
- 5. C · Can usually recover the £400
- 6. C · Unenforceable for lack of consideration
- 7. A · The contract was void, because the finance company dealt only with the named person
- 8. B · A contract was made when B accepted, because the revocation had not yet arrived
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