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Law > Q6 Contract Formation > Flashcards

Q6 Contract Formation Flashcards

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1
Q

Which happens first in the sequence of contract formation?

A.
Offer

B.
Acceptance

C.
Invitation to treat

D.
Providing consideration

A

C.

Invitation to treat

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2
Q

Adams –v- Lindsell (1818) set a precedent which has resulted in which common stipulation being included in contract documents?

A.
Proof of postage is proof of delivery

B.
Proof of postage is not proof of delivery

C.
Proof of postage is proof of postage

D.
Proof of postage is a piece of paper

A

B.

Proof of postage is not proof of delivery

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3
Q

The rule in Adams -v- Lindsell (1818) only applies to which form of communication?

A.
Fax transmissions

B.
Email

C.
Telegraph

D.
Post

A

D.

Post

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4
Q

Which of the following is not valid as consideration?

A.
A pepper corn

B.
Money

C.
A promise not to do something

D.
Work carried out prior to formation of the contract

A

D.

Work carried out prior to formation of the contract

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5
Q

What type of contract does not require consideration?

A.
A good deed

B.
A deed

C.
An employment contract

D.
An oral contract

A

B.

A deed

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6
Q

Which of the following does not contribute towards the ‘battle of the forms’?

A.
Counter-offers

B.
Parties’ standard terms of purchase

C.
Parties’ standard terms of supply

D.
Construction industry standard form contracts

A

D.

Construction industry standard form contracts

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7
Q

Which of the following is likely to be contractually enforceable in most circumstances?

A.
Letter of intent

B.
Agreement to agree

C.
Heads of terms

D.
A bid submitted in response to an invitation to tender

A

D.
A bid submitted in response to an invitation to tender

if you submit a tender you are making a legally binding offer

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8
Q

If you don’t want a discussion document to be enforceable as a contract what should you write on it?

A.
This is not a contract

B.
Subject to contract

C.
Without prejudice

D.
This is a deed

A

B.

Subject to contract

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9
Q

Which of the following, along with “offer” and “acceptance” completes the “trinity” test for contract formation?

A.
Intention to create legal relations

B.
Intention to visit your relations

C.
Intention to create legal fictions

D.
Intention to remember to do something

A

A.

Intention to create legal relations

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10
Q

Which of the following is likely to create a binding contract?

A.
Letter of intent

B.
Standard form contract

C.
Heads of terms

D.
Agreement to agree

A

B.

Standard form contract

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11
Q

What do courts look for to determine whether the parties intended to create a binding contract?

A.
The actual intent in the persons’ minds

B.
What the persons said and did

C.
The actual intent in the persons’ mine

D.
What the persons said but did not do

A

B.

What the persons said and did

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12
Q

What is the name of a contract that only comes into effect if a future event occurs?

A.
A conditional contract

B.
The National Lottery

C.
Gala Bingo

D.
Collateral warranty

A

A.

A conditional contract

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13
Q

Which of the following has legal capacity to enter into a binding contract to buy a sweet shop?

A.
A minor

B.
A miner

C.
A mentally impaired person

D.
A dead person

A

B.

A miner

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14
Q

In what circumstance can an offer be withdrawn?

A.
Always

B.
Never

C.
Before it has been accepted

D.
During a leap year.

A

C.

Before it has been accepted

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15
Q

Which statement best describes the nature of an ‘if’ contract (as examined in British Steel -v- Cleveland Bridge (1981))

A.
An ‘if’ contract may arise to provide for payment for certain preliminary works on a construction project where the person who carried out those works does not win a tender for the main project to which those preliminary works related.

B.
An ‘if’ contract may arise to provide for payment for certain additional works on a construction project where the person who carried out those works does not win a tender for the main project to which those preliminary works related.

C.
An ‘if’ contract may arise to provide for non-payment for certain preliminary works on a construction project where the person who carried out those works does not win a tender for the main project to which those preliminary works related.

D.
An ‘if’ contract may arise to provide for payment for certain preliminary works on a construction project where the person who carried out those works does win a tender for the main project to which those preliminary works related.

A

A.
An ‘if’ contract may arise to provide for payment for certain preliminary works on a construction project where the person who carried out those works does not win a tender for the main project to which those preliminary works related.

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16
Q

“The law deals in end points, not negotiations along the way” (Walford -v- Miles (1992))

What type of non-contract is this statement most applicable to?

A.
Agreements to agree

B.
Invitations to tender

C.
Collateral warranties

D.
Bus tickets

A

A.

Agreements to agree

17
Q

Why is Blackpool & Fylde Aeroclub -v- Blackpool Borough Council (1990) a cause of concern for persons running tender contests?

A.
It indicated that in certain circumstances (e.g. where the organisation running the contest had followed its own stated contest rules) there might sometimes be a risk of liability to pay unsuccessful tenderers some compensation.

B.
It indicated that in certain circumstances (e.g. where the organisation running the contest had failed to follow its own stated contest rules) there might sometimes be a risk of liability to pay successful tenderers some compensation.

C.
It indicated that in certain circumstances (e.g. where the organisation running the contest had failed to follow its own stated contest rules) there might sometimes be a risk of liability to pay unsuccessful tenderers some compensation.

D.
It indicated that in certain circumstances (e.g. where the organisation running the contest had failed to follow its own stated contest rules) there might sometimes be a risk of liability to pay unsuccessful tenderers some consideration.

A

C.
It indicated that in certain circumstances (e.g. where the organisation running the contest had failed to follow its own stated contest rules) there might sometimes be a risk of liability to pay unsuccessful tenderers some compensation.

18
Q

In Regalion Properties -v- London Docklands Development Corporation (1995) the judge decided what?

A.
That costs incurred by a person during a pre-contractual negotiation were incurred at that person’s own risk. If the negotiations broke down there would not normally be any claim to compensation or cost recovery against the potential client for costs already incurred.

B.
That costs incurred by a person during a post-contractual negotiation were incurred at that person’s own risk. If the negotiations broke down there would not normally be any claim to compensation or cost recovery against the potential client for costs already incurred.

C.
That costs incurred by a person after a pre-contractual negotiation were incurred at that person’s own risk. If the negotiations broke down there would not normally be any claim to compensation or cost recovery against the potential client for costs already incurred.

D.
That costs incurred by a person after a post-contractual negotiation were incurred at that person’s own risk. If the negotiations broke down there would not normally be any claim to compensation or cost recovery against the potential client for costs already incurred.

A

A.
That costs incurred by a person during a pre-contractual negotiation were incurred at that person’s own risk. If the negotiations broke down there would not normally be any claim to compensation or cost recovery against the potential client for costs already incurred.

19
Q

The Banwell Report (1964) warned (unsuccessfully) about what?

A.
The proliferation of standard form construction contracts promoted by various professional bodies

B.
The shortage of standard form construction contracts promoted by various professional bodies

C.
The size of standard form construction contracts promoted by various professional bodies

D.
The poor grammar of standard form construction contracts promoted by various professional bodies

A

A.
The proliferation of standard form construction contracts promoted by various professional bodies

(rapid increase or large amount of)

20
Q

Which of the following is not a type of standard form construction contract?

A.
JCT

B.
ICE

C.
NEC

D.
JCB

A

D.

JCB

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