Contract

Question 1

Def: privity of contract

Answer 1

is a common law principle which provides that a contract can not confer rights or impose obligations upon any person which is not a party to the contract

Question 2

Def: consideration

Answer 2

Something if value which a party is not already entitled, given in exchange for contractual promises

Question 3

Executory consideration

Answer 3

A promise to do something in return for a like promise

Question 4

Is an advert an invitation to treat

Answer 4

Yes

Question 5

When does the postal rule not apply

Answer 5

In revoking a contract (only applies to accepting)

Question 6

What laws are there for email acceptance?

Answer 6

None

Question 7

Must consideration be sufficient, adequate or both?

Answer 7

Must be sufficient but need not be adequate

Question 8

When is executors consideration made?

Answer 8

At the time of the contract

Question 9

What’s the difference between adequate and sufficient?

Answer 9

Adequate is equal to requirement where as sufficient is within a relevant range of the requirement

Question 10

Who is a contract of service for?

Answer 10

An employee

Question 11

Who is a contract for services for?

Answer 11

A contractor

Question 12

How long is bereavement?

Answer 12

2 weeks, paid

Question 13

What is the duty of fidelity?

Answer 13

The law to provide faithful service

Question 14

A contract of sale of land must be in what form?

Answer 14

Writing

Question 15

Can an exclusion remove all liability for breach of contract?

Answer 15

Yes

Question 16

Def: legal capacity

Answer 16

The formal ability to hold and to exercise rights and duties

Question 17

What form must an appointment of an agent be in?

Answer 17

Can be oral (does not have to be writing)

Question 18

What is a memorandum of association?

Answer 18

A legal systems signed by all initial shareholders or guarantors agreeing to form the company

Question 19

Do preference shares carry the same voting rights as ordinary shares?

Answer 19

Yes unless for an express provision

Question 20

What powers does an administrator have?

Answer 20

That if a director plus some in the insolvency act

Question 21

What level does the ring fencing provision apply to?

Answer 21

Over £10,000

Question 22

With an terms will losses in a partnership be split equally or to the same proportion as the profit sharing

Answer 22

In the same proportion as the profits would be split

Question 23

What’s the difference between corruption and bribery?

Answer 23

Bribery is limited to the giving or acceptance of payment of other illegitimate advantages. Corruption includes any illegitimate use of office including a range of different types of crime