1.Easy
Anticipatory breach occurs when:
- AA party performs earlier than the agreed date
- BA party breaches a term that has not yet been agreed
- CA party shows, before performance is due, that it will not perform
- DAn expert predicts, before performance is due, that a party will probably breach
2.Easy
An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:
- AA counter-offer
- BA revocation
- CAn acceptance
- DA request for information
3.Easy
Under the UK Consumer Rights Act 2015, goods supplied by a trader to a consumer must be:
- ABrand new and in their original packaging
- BCovered by a five-year manufacturer guarantee against all defects
- CSold below the recommended retail price
- DOf satisfactory quality, fit for purpose and as described
4.Medium
A holiday company provides a holiday far below the promised standard. Can the customer recover damages for disappointment?
- AOnly if the customer suffered a physical injury
- BNo, because mental distress is never recoverable in contract
- COnly if the company acted dishonestly
- DYes, because the contract's purpose was to provide enjoyment
5.Medium
An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:
- AIts estimated profits from the film, even if they are purely speculative
- BOnly nominal damages of a small sum
- CPunitive damages to deter the actor
- DIts wasted expenditure, including costs incurred before the contract
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
- BNot part of the contract, because it came after formation
- CPart of the contract, because she stayed in the room
- DPart of the contract, because hotels may exclude liability
7.Hard
A former spy publishes his memoirs in breach of his undertaking not to disclose official information. In AG v Blake, the House of Lords:
- AAwarded only nominal damages
- BHeld that no remedy was available
- CAwarded punitive damages to the Crown
- DOrdered him to account for his profits, in an exceptional case
8.Hard
Two parties agree to continue negotiating for the sale of a business, with no fixed period. In Walford v Miles, the House of Lords held that a bare agreement to negotiate in good faith is:
- AUnenforceable, because it lacks certainty
- BEnforceable, as an implied duty of good faith
- CEnforceable only if made in writing
- DEnforceable as a lock-out agreement
Answer key
- 1. C · A party shows, before performance is due, that it will not perform
- 2. D · A request for information
- 3. D · Of satisfactory quality, fit for purpose and as described
- 4. D · Yes, because the contract's purpose was to provide enjoyment
- 5. D · Its wasted expenditure, including costs incurred before the contract
- 6. B · Not part of the contract, because it came after formation
- 7. D · Ordered him to account for his profits, in an exceptional case
- 8. A · Unenforceable, because it lacks certainty
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