MCQ Flashcards
What do commercial agreements cover?
Commercial agreements do not just cover business to business contracts. They also cover all agreements that are not made between family and friends.
A bakers shop entered into a contract with a customer to bake a cake with a gay slogan on. Can the baker refuse because they are devout Christian’s?
Refusal to perform the contract is legal because the bakers should not be forced to express a political opinion in which they did not believe.
A client employees someone to manage a pub, they were told not to make any additional purchases that weren’t on the list.
However the manager entered into an agreement for the purchase of cigars and did not pay for them.
Will the client be liable to the seller?
Yes because the manager had implied actual authority as buying cigars is within the range of acts usually carried out by a pub manager.
An auctioneer withdrew the ornaments from the sale and later sold them privately.
How can the client sue the auctioneer?
The client can sue the auctioneer for breach of a unilateral contract.
A landlord entered into a contract with a builder. They completed the job but it wasn’t done correctly. And the landlord refused to pay.
Can the builder sue?
If the builder performed his duty then he can sue for what he is owed subtract any of the faults and defects.
A client ordered machinery from a new company and they delivered it 3 months late. In the contract the company had a clause stating that the company is not liable for late delivery.
Can the client sue?
The exemption clause may not be reasonable, in which case the company would be liable for the breach.
Claimant sold coats to a defendant, payment was suppose to be made within 10 days. It has been 2 months and the client has not received payment.
What should the client do?
Claimant should claim the agreed contractual sum.
Can a minor be bound to a trading contract?
No
The doctrine of privity says that only parties to a contract can claim.
What is the exception?
Where the contract with the object of leisure and enjoyment is made by one party on behalf of a group, the party to the contract can claim on the groups behalf.
A client entered into a contract with a builder to fit in a new kitchen.
The builder said he underestimated the costs and could not afford to compete the job. The client then offered him additional money and he was able to complete the job in time for her to open the bar.
Is the client liable to pay the additional amount owed?
Yes because the promise to pay more conferred a practical benefit.
The client bought a vase and discovered that that vase is worth less than the price paid.
Can the client have a cause of action against the owner?
No because the general rule is ‘buyer beware’.
A client bought a bike from a company and 2 weeks later it became faulty.
Can the client reject to the bike and get a full refund?
Yes plus extra money it will cost to buy a similar bike elsewhere.
