Contract Law

Question 1

Does the postal rule apply to revocation?

Answer 1

No

Question 2

What’s the remoteness of damages rule?

Answer 2

Rule 1: for damages to be claimed, the damages must arise naturally from the breach or:

Rule 2: be reasonable foreseeable in the eyes of both parties at the time the contract was formed

Question 3

Under the unfair contract terms act 1977, a clause in a hire purchase contract that attempts to limit liability for undertakings in respect of title of the seller is voidable, true or false

Answer 3

False, this is VOID not voidable

Question 4

The unfair contract terms act 1977 defines a consumer as what?

Answer 4

Someone who does not make a contract in the course of a business

Question 5

True or false, complete and exact performance is required to discharge a contract?

Answer 5

False. Only substantial performance is enough to discharge a contract

Question 6

True or false, an order for specific performance will be made when the contract is for land.

Answer 6

True

Question 7

If you enter a contract to pay in instalments, you fail to pay the first installment, the supplier then refuses any more deliveries unless you pay cash on delivery then what is the right answer?

Answer 7

You should mitigate your loss by accepting the offer of delivery on cash payment terms

Question 8

Does the performance of an existing contract in return for a promise by a third party give an example of performance that amounts to good consideration?

Answer 8

Yes

Question 9

If you request a service but don’t agree a price then obviously you still need to pay

Answer 9

-

Question 10

How would you describe a verbal agreement over land?

Answer 10

Unenforceable

Question 11

As a general rule, can a party recover goods from a third party where the contract turns out NOT to be valid but….:

Void?

Voidable?

Answer 11

Void - yes

Valid - no

Question 12

By virtue of the unfair contract terms act 1977, an attempt by any person to exclude or restrict his liability for damage to property caused by negligence is:

Answer 12

Void (unless reasonable)

Question 13

What is expectation interest?

Answer 13

Money to put the claimant in the position that they would have been in if the contract had been properly performed

Question 14

What is reliance interest?

Answer 14

Money to put the claimant in the position they would have been in if they had not relied on the contract

Question 15

If you post an acceptance on an offer and it arrives after the offerer wanted it then it is NOT valid

Answer 15

-

Question 16

What do you call it when two companies both think their terms apply to a contract?

Answer 16

Battle of the forms

Question 17

If you give evidence for a crime which has a reward attached but you aren’t aware of the reward, can you claim the reward?

Answer 17

No as you can’t accept an offer that you aren’t aware of