Core Principles of Contract Law Flashcards
Which of the following is NOT a required element for a legally binding contract?
A) Offer
B) Consideration
C) Intention to create legal relations
D) Witness signature
D) Witness signature
(A witness is required for a deed but not for a simple contract.)
In contract law, what is consideration?
A) A written document confirming an agreement
B) A payment made before a contract is signed
C) Something of value given by both parties in a contract
D) A guarantee given by a third party
C) Something of value given by both parties in a contract
(Consideration must move from each party to the other for a valid contract.)
Which of the following is true regarding express and implied contract terms?
A) Only written terms can be enforceable
B) Implied terms can override express terms in any contract
C) Express terms are stated explicitly, whereas implied terms arise through conduct, custom, or statute
D) Implied terms must be agreed upon in writing
C) Express terms are stated explicitly, whereas implied terms arise through conduct, custom, or statute
(Implied terms can be in fact (based on intention) or in law (by statute or courts).)
What happens when a contract is frustrated?
A) One party decides to cancel the contract
B) The contract is discharged because performance has become impossible due to unforeseen events
C) The party responsible for the delay must pay damages
D) The contract is automatically extended
B) The contract is discharged because performance has become impossible due to unforeseen events
(Frustration applies only in exceptional cases where performance is impossible or illegal.)
What is the main difference between a condition and a warranty in contract law?
A) A breach of a condition only results in damages
B) A condition is a fundamental term allowing contract termination if breached, whereas a warranty is a minor term
C) A condition must always be written, but a warranty can be implied
D) A warranty is more important than a condition
B) A condition is a fundamental term allowing contract termination if breached, whereas a warranty is a minor term
(A condition goes to the root of the contract, while a warranty is a less significant obligation.)
David agrees to sell his car to Anna for £5,000. Before the contract is completed, the car is destroyed in a flood. What is the legal position?
A) Anna must still pay for the car
B) The contract is frustrated, and both parties are discharged
C) David must find a replacement car for Anna
D) Anna can sue David for breach of contract
B) The contract is frustrated, and both parties are discharged
(The car’s destruction makes performance impossible, leading to frustration.)
A buyer and seller exchange emails agreeing on a price for goods but do not sign a contract. Later, the seller refuses to deliver. Can the buyer enforce the agreement?
A) Yes, if the emails show a clear offer and acceptance
B) No, because a written signature is required
C) No, because verbal contracts are unenforceable
D) Yes, but only if the goods are worth over £10,000
A) Yes, if the emails show a clear offer and acceptance
(A contract can be formed electronically, provided agreement and intention are clear.)
Mark, a company director, signs a contract with a supplier but was never given authority by the board. Is the company bound by the contract?
A) Yes, if Mark had apparent authority
B) No, because Mark lacked authority
C) Yes, but only if the contract is worth less than £10,000
D) No, unless the contract was later ratified
A) Yes, if Mark had apparent authority
(A company may be bound if a director has apparent (ostensible) authority, even without actual authority.)
A construction company contracts to build a bridge but is delayed due to unexpected government regulations banning certain materials. Can the contract be frustrated?
A) Yes, because changes in law can frustrate a contract
B) No, because frustration only applies to natural disasters
C) No, because the company should have foreseen the risk
D) Yes, but only if the parties mutually agree
A) Yes, because changes in law can frustrate a contract
(Legal changes making performance impossible or illegal can lead to frustration.)
Sarah contracts with a catering company for her wedding. On the day of the event, the caterers fail to provide food. What remedies does Sarah have?
A) She can only claim for the cost of alternative catering
B) She can claim damages and possibly treat the contract as repudiated
C) She must give the caterers another chance to perform
D) She can only claim specific performance
B) She can claim damages and possibly treat the contract as repudiated
(Failure to provide food could be a fundamental breach, allowing termination and damages.)
