ACA Law Exam Questions and Answers
Void Contract - Answer-No contract at all
Type of void contract - Answer-Illegal contract
Voidable Contract - Answer-Can be set aside
Features of voidable contract - Answer-Lack of capacity, lack of free will and contract made due to
misrepresentation
Unenforceable Contract - Answer-Valid contract but cannot be enforced
Features of unenforceable contract - Answer-Contract not in correct form
Elements of a contract - Answer-Agreement, Consideration and Intention
Offer - Answer-Definite promise to be bound on specific terms
Made by an offeror to an offeree
Offeree can be one person, group of people or whole world
,Not an offer - Answer-Invitation to treat (invitation to someone to make an offer)
Statement of intention
Request for information
Termination of an offer - Answer-Rejection, Counter-offer, Lapse, Revocation, Failure of condition
Acceptance - Answer-Unqualified agreement to all terms of offer
Can be verbal, in writing and inferred by contract
Offeror cannot dictate that silence will be acceptance
Acceptance must be communicated unless offeror dispenses with that requirement
Intention to create legal relations - Answer-Presumption based on type of relationship
- Social/domestic - presumed no intention
- Commercial - presumed intention
Presumption may be rebutted if clear evidence to the contrary
Good consideration - Answer-- Executed - act performed at time of agreement
- Executory - promise to do something in the future
- Sufficient not adequate - as long as has value, doesn't matter if isn't equal
- Forbearance/waiver of existing rights
Express terms - Answer-Specifically agreed and must be clear
Implied terms - Answer-By custom, by statute or by the courts.
Gaps in express terms can be filled in with implied terms.
,Privity of contract - Answer-Only the parties to the contract can enforce/be sued under it.
Exceptions:
- agency law
- contracts (rights of 3rd parties) act
Discharge of contract by performance - Answer-Fulfilling contractual duties, should be complete and
exact, courts may accept substantial performance
Discharge of contract by frustration - Answer-Forces outside the contract make performance impossible
Discharge of contract by breach - Answer-Contractual duties not properly performed, actual breach - at
time of contract, anticipatory breach - before time performance is due
Remedies - Unliquidated damages - Answer-Courts to determine
Remedies - Liquidated damages - Answer-Genuine attempt to value, amount enforceable
Remedies - Penalty clause - Answer-Excessive/arbitrary, amount not normally awarded
Valuing unliquidated damages - remoteness - Answer-Only award for losses which are natural or in both
parties' contemplation
Valuing unliquidated damages - measure of loss - Answer-Expectation interest - what position did the
claimant expect to be in?
Reliance interest - what has the claimant lost out on by relying on contract being performed?
Parties have a duty to mitigate their losses
, Valuing unliquidated damages - equitable remedies - available at discretion of court - Answer-Specific
performance, recession, injunction
Valuing unliquidated damages - types of injunction - Answer-Mandatory, prohibitory, asset freezing
Exclusion clauses - Answer-Limit/exempt liability, must be incorporated - by signature, by bringing to
other party's attention at/beofre time of agreement, wording will be interpreted against person trying
to rely on them, must fulfil conditions of legislation - unfair contract terms act - in all contract between
businesses except those specifically excluded, consumer rights act - in contracts where one party is
consumer
Negligence - claimant needs to prove - Answer-Duty of care owed, breach of duty, breach caused the
damage suffered by claimant
Duty of care - Answer-Owed to:
- neighbour - person claimant would reasonably foresee as affected by their actions
Tests to determine whether party owes another a duty of care - Answer-Reasonably foreseeable
Sufficient proximity
Fair, just and reasonable
Public policy
Breach of duty - Answer-Judged as a 'reasonable man'
- if have particular skill, reasonable man with that skill
- level of skill not important
- judged against current practice at time
- courts will consider advantage and risk
Void Contract - Answer-No contract at all
Type of void contract - Answer-Illegal contract
Voidable Contract - Answer-Can be set aside
Features of voidable contract - Answer-Lack of capacity, lack of free will and contract made due to
misrepresentation
Unenforceable Contract - Answer-Valid contract but cannot be enforced
Features of unenforceable contract - Answer-Contract not in correct form
Elements of a contract - Answer-Agreement, Consideration and Intention
Offer - Answer-Definite promise to be bound on specific terms
Made by an offeror to an offeree
Offeree can be one person, group of people or whole world
,Not an offer - Answer-Invitation to treat (invitation to someone to make an offer)
Statement of intention
Request for information
Termination of an offer - Answer-Rejection, Counter-offer, Lapse, Revocation, Failure of condition
Acceptance - Answer-Unqualified agreement to all terms of offer
Can be verbal, in writing and inferred by contract
Offeror cannot dictate that silence will be acceptance
Acceptance must be communicated unless offeror dispenses with that requirement
Intention to create legal relations - Answer-Presumption based on type of relationship
- Social/domestic - presumed no intention
- Commercial - presumed intention
Presumption may be rebutted if clear evidence to the contrary
Good consideration - Answer-- Executed - act performed at time of agreement
- Executory - promise to do something in the future
- Sufficient not adequate - as long as has value, doesn't matter if isn't equal
- Forbearance/waiver of existing rights
Express terms - Answer-Specifically agreed and must be clear
Implied terms - Answer-By custom, by statute or by the courts.
Gaps in express terms can be filled in with implied terms.
,Privity of contract - Answer-Only the parties to the contract can enforce/be sued under it.
Exceptions:
- agency law
- contracts (rights of 3rd parties) act
Discharge of contract by performance - Answer-Fulfilling contractual duties, should be complete and
exact, courts may accept substantial performance
Discharge of contract by frustration - Answer-Forces outside the contract make performance impossible
Discharge of contract by breach - Answer-Contractual duties not properly performed, actual breach - at
time of contract, anticipatory breach - before time performance is due
Remedies - Unliquidated damages - Answer-Courts to determine
Remedies - Liquidated damages - Answer-Genuine attempt to value, amount enforceable
Remedies - Penalty clause - Answer-Excessive/arbitrary, amount not normally awarded
Valuing unliquidated damages - remoteness - Answer-Only award for losses which are natural or in both
parties' contemplation
Valuing unliquidated damages - measure of loss - Answer-Expectation interest - what position did the
claimant expect to be in?
Reliance interest - what has the claimant lost out on by relying on contract being performed?
Parties have a duty to mitigate their losses
, Valuing unliquidated damages - equitable remedies - available at discretion of court - Answer-Specific
performance, recession, injunction
Valuing unliquidated damages - types of injunction - Answer-Mandatory, prohibitory, asset freezing
Exclusion clauses - Answer-Limit/exempt liability, must be incorporated - by signature, by bringing to
other party's attention at/beofre time of agreement, wording will be interpreted against person trying
to rely on them, must fulfil conditions of legislation - unfair contract terms act - in all contract between
businesses except those specifically excluded, consumer rights act - in contracts where one party is
consumer
Negligence - claimant needs to prove - Answer-Duty of care owed, breach of duty, breach caused the
damage suffered by claimant
Duty of care - Answer-Owed to:
- neighbour - person claimant would reasonably foresee as affected by their actions
Tests to determine whether party owes another a duty of care - Answer-Reasonably foreseeable
Sufficient proximity
Fair, just and reasonable
Public policy
Breach of duty - Answer-Judged as a 'reasonable man'
- if have particular skill, reasonable man with that skill
- level of skill not important
- judged against current practice at time
- courts will consider advantage and risk
