mcq Flashcards
Which of the following are likely to be enforceable against Alfie, who is 17?
i. to buy a suit to wear at job interviews
ii. to buy 50 Christmas cakes which he intends to distribute to local old people’s homes
iii. to work for Busby Ltd as a packer in their dispatch department
iv. to borrow £50 from Jemima.
a. i, ii, iii and iv
b. i and iii only
c. i, iii and iv
d. None of the options are enforceable against Alfie
b. i and iii only
What presumption is made in social and domestic agreements?
a. That the parties do not intend to enter into a legal relationship; it is an objective test
b. That the parties intend to enter into a legal relationship; it is an objective test
c. That the parties do not intend to enter into a legal relationship; it is a subjective test
d. That the parties intend to enter into a legal relationship; it is a subjective test
a. That the parties do not intend to enter into a legal relationship; it is an objective test
Which of the following cases illustrates the use of the presumption in social and domestic agreements?
a. Nash v Inman
b. Balfour v Balfour
c. Doyle v White City Stadium
d. Neale v Merrett
b. Balfour v Balfour
Every week, Amy, Jim and their daughter, Sophie, enter the National Lottery, each contributing £1 for three lucky dip numbers. Sophie always fills in the form, pays the money to the newsagent and keeps the ticket. Last week five of their numbers came up and the ticket paid out £5,000. Sophie refuses to share the £5,000.
Which one of the following correctly identifies the law in this situation?
a. As money is involved this is a business agreement and there is an intention to create legal relations
b. As Amy, Jim and Sophie are family there is a presumption that they do not intend to create legal relations, however, this is just a presumption so can be rebutted by Amy and Jim to ensure they receive their share of the £5,000.
c. As Sophie always buys the ticket there is a clear intention that the contract is made between Sophie and the newsagent, and she does not have to share the winnings.
d. None of the above are correct
b. As Amy, Jim and Sophie are family there is a presumption that they do not intend to create legal relations, however, this is just a presumption so can be rebutted by Amy and Jim to ensure they receive their share of the £5,000.
In which type of agreement is the intention to create legal relations presumed to exist?
a. Agreements between friends or family
b. Commercial or business agreements
c. All written agreements
d. The intention to create legal relations is never presumed in an agreement
b. Commercial or business agreements
Which of the following are exceptions to the rule on privity?
i. Agency ii. Third-Party Insurance iii. Trusts iv. Contracts for the benefit of a group
a. i and ii ONLY
b. ii and iii ONLY
c. iii and iv ONLY
d. ALL
d. ALL
The constitution of a company states its business is the purchase, sale and refurbishment of high-quality bicycles.
The company decides to deviate from its normal activities and starts lending money to vulnerable people at high rates of interest.
What is the likely outcome of this activity?
a. It will be seen as acting intra vires which means it is acting within its powers
b. It will be seen as acting ultra vires which means it is acting outside its powers
b. It will be seen as acting ultra vires which means it is acting outside its powers
When considering intoxication (under the rules on capacity), which of the following statement(s) are correct?
i. People under the influence of drugs or alcohol are presumed to know what they are doing. As such, are bound by the contracts they create.
ii. If a person is so intoxicated, they do not know what they are doing and the other party realises this, the contract may be unenforceable.
iii. A contract entered into when intoxicated will never be enforceable as the law requires clarity when entering into agreements.
iv. A contract entered into when intoxicated will always be enforceable as the law will not allow someone to avoid a contract on this basis.
a. i only
b. i and ii only
c. i, ii and iii only
d. i, ii, iii and iv only
b. i and ii only
In which area of law does the case of Tweddle v Atkinson sit?
a. Consideration
b. Privity
c. Capacity
d. Intention
b. Privity
Intention to create legal relations is presumed in which of the following relationships:
i. Husband and wife living together ii. Parties to a commercial contract iii. Husband and wife who are separated iv. Friends who are part of a lottery syndicate
a. ii only
b. ii, iii and iv
c. i, ii and iv
d. All of the above
b. ii, iii and iv
