Aca Law Exam Latest Updated 2025 With Complete Solutions
Zak owes Eve £100. Finding that he has insufficient cash, Zak offers Eve his bicycle
worth £90 instead. Eve accepts. Requirement Which of the following statements best
describes the legal position as to whether there is valid consideration?
A Yes, Eve was not already entitled to the bicycle so it is sufficient consideration for
waiver of the debt.
B No, the bicycle is not sufficient as it does not match or exceed the value of the debt.
C No, consideration must be in money or money's worth.
D Yes, a bicycle constitutes sufficient consideration because it has an identifiable
value.
The value of the bicycle is irrelevant. It is something to which Eve was not previously
entitled.
Are the following statements true or false?
1. In all cases where a party to a contract fails to perform their contractual
obligations, they will be liable for breach of contract.
2. Provided a party to a contract substantially performs their contractual obligations,
that is a sufficient discharge of the contract and the other party has no redress for
those parts of the contract which were not performed.
1. False
2. False
There will be no liability if they have a lawful excuse, for example if the contract is
discharged by frustration. The other party may seek redress in respect of that part of the
performance which did not match the contractual obligations completely.
Are the following statements true or false?
1. Where a party is in breach of contract, the other party may choose either to treat
the contract as discharged (and sue for damages) or to affirm the contract.
2. Where a party causes an anticipatory breach of a contract, i.e., they indicate in
advance that they have no intention of performing the contract, the other party may
continue to incur costs in performing the contract and take action against the party
in breach.
,1. False.
This is only true where the breach is very serious.
2. True.
Are the following statements true or false?
1. The courts will interpret any ambiguity in an exclusion clause in favour of the party
not seeking to rely on it.
2. The Unfair Contract Terms Act (UCTA) 1977 applies to all contracts, provided at
least one party is a commercial concern or business.
1. True
2. False
Feedback
Certain contracts are excluded from the UCTA, for example insurance contracts. The UCTA
also only applies to business-to-business contracts.
Which of the following descriptions best describes the statutory test of
reasonableness under the Unfair Contract Terms Act 1977?
A Whether an ordinary person in the normal course of business would consider the
clause to be reasonable in all the circumstances
B Whether it is fair and reasonable, with regard to all the circumstances which were,
or which ought to have been known to the parties when the contract was made
C Whether it is fair and reasonable with regard to all the circumstances which were
known to or in the reasonable contemplation of the parties D Whether it is fair and
reasonable to exclude liability, having regard to the relative bargaining strengths of
the parties
B Whether it is fair and reasonable, with regard to all the circumstances which were, or
which ought to have been known to the parties when the contract was made
Are the following statements true or false?
1. Anticipatory breach may be implied from conduct and need not be explicit.
2. Where an innocent party elects to treat a contract as discharged, they waive the
right to claim damages from the party in default.
1. True
2. False. They may treat the contract as discharged and sue for damages.
Are the following statements true or false?
1. Damages for breach of contract are primarily intended to restore the injured party
,to the same position they were in at the time when the contract was made.
2 The claimant is required to take every opportunity to mitigate their loss arising as
a consequence of a breach of contract.
1. False. Damages are intended to put the party in the position they would have been in had
the contract been performed.
2. False. The claimant is required to take only reasonable steps, not ones that carry undue
risk or that are discreditable.
David lived next to a field owned by Frances. He wished to widen the access to his
property by two feet. When they met at the village fete, Frances agreed to transfer a
strip of land two feet wide and 30 feet long, provided David erected attractive
fencing. She also said that there was no need for him to pay for the land.
Which of the following best describes the agreement between Them?
Select one:
1. There is no contract because there is no consideration for the transfer of land
2. The contract is void because it is not in writing
3. The contract is voidable because it is not in writing Incorrect
4. The contract is unenforceable because it is not in writing
An agreement to transfer land should be written and is unenforceable if not. David's
agreement to erect fencing is consideration.
The correct answer is: The contract is unenforceable because it is not in writing
Janet owes George £500. Rhiannon telephones George and promises that she will
guarantee to pay the sum owed if Janet cannot or does not pay. Janet fails to pay the
£500 and so George writes a letter to Rhiannon demanding payment.
Which of the following best describes the legal position as to whether Rhiannon is
obliged to pay George the £500?
Select one:
1. There is a valid agreement between George and Rhiannon and she must pay
2. George's letter is written evidence of the terms of guarantee and Rhiannon must
pay
3. Rhiannon is not a party to the original contract which created the debt owed by
, Janet so she cannot be liable on the guarantee
4. The guarantee is unenforceable so Rhiannon is not liable
An oral guarantee needs to be evidenced in writing and signed or acknowledged by the
guarantor (Rhiannon). George's letter is therefore insufficient.
The correct answer is: The guarantee is unenforceable so Rhiannon is not liable
Are the following statements true or false?
1. An advertisement in a newspaper can never constitute a valid offer, as it is merely
an invitation to treat.
2. An offer can be made to the world at large
1. False. Although this is normally the case there may be exceptions. The advertisement in
Carlill v Carbolic Smoke Ball Co was held to be an offer, for example.
2. True
On 10 April, Lucy offered to sell her flute to Harriet for £300. Harriet said she'd pay
£275 for it. Lucy said she'd take £285 and Harriet should let her know (in writing) by
lunchtime Friday 14 April if she agreed to that price, because she was attending an
orchestra rehearsal on the Friday evening and, if Harriet didn't want it, she might sell
it there. Harriet posted her reply along with a cheque for £285 in the 7am post on
Friday. On Friday evening, Lucy sold the flute to Alice. The next day, Lucy receives
Harriet's cheque.
1. A valid contract exists at 7am on Friday when Harriet posts her acceptance of
Lucy's offer
2. A valid contract exists on Saturday when Lucy receives Harriet's cheque and Lucy
is in breach of contract
3. There is no valid contract because Lucy impliedly revokes her offer when she sells
the flute toAlice
4. There is no valid contract because Harriet does not affect a valid acceptance of i
Lucy required written notice to have reached her by lunchtime on Friday. This means that
the postal rule is not effective to render the acceptance valid when posted. By the time
Harriet's 'acceptance' is communicated, the offer has lapsed.
The correct answer is: There is no valid contract because Harriet does not affect a valid
acceptance of it while theoffer remains open and capable of acceptance
Pamela appears on 'Crimewatch' and offers £10,000 as a reward for anyone who can
provide information leading to the conviction of the thief who stole her family jewels.
Zak owes Eve £100. Finding that he has insufficient cash, Zak offers Eve his bicycle
worth £90 instead. Eve accepts. Requirement Which of the following statements best
describes the legal position as to whether there is valid consideration?
A Yes, Eve was not already entitled to the bicycle so it is sufficient consideration for
waiver of the debt.
B No, the bicycle is not sufficient as it does not match or exceed the value of the debt.
C No, consideration must be in money or money's worth.
D Yes, a bicycle constitutes sufficient consideration because it has an identifiable
value.
The value of the bicycle is irrelevant. It is something to which Eve was not previously
entitled.
Are the following statements true or false?
1. In all cases where a party to a contract fails to perform their contractual
obligations, they will be liable for breach of contract.
2. Provided a party to a contract substantially performs their contractual obligations,
that is a sufficient discharge of the contract and the other party has no redress for
those parts of the contract which were not performed.
1. False
2. False
There will be no liability if they have a lawful excuse, for example if the contract is
discharged by frustration. The other party may seek redress in respect of that part of the
performance which did not match the contractual obligations completely.
Are the following statements true or false?
1. Where a party is in breach of contract, the other party may choose either to treat
the contract as discharged (and sue for damages) or to affirm the contract.
2. Where a party causes an anticipatory breach of a contract, i.e., they indicate in
advance that they have no intention of performing the contract, the other party may
continue to incur costs in performing the contract and take action against the party
in breach.
,1. False.
This is only true where the breach is very serious.
2. True.
Are the following statements true or false?
1. The courts will interpret any ambiguity in an exclusion clause in favour of the party
not seeking to rely on it.
2. The Unfair Contract Terms Act (UCTA) 1977 applies to all contracts, provided at
least one party is a commercial concern or business.
1. True
2. False
Feedback
Certain contracts are excluded from the UCTA, for example insurance contracts. The UCTA
also only applies to business-to-business contracts.
Which of the following descriptions best describes the statutory test of
reasonableness under the Unfair Contract Terms Act 1977?
A Whether an ordinary person in the normal course of business would consider the
clause to be reasonable in all the circumstances
B Whether it is fair and reasonable, with regard to all the circumstances which were,
or which ought to have been known to the parties when the contract was made
C Whether it is fair and reasonable with regard to all the circumstances which were
known to or in the reasonable contemplation of the parties D Whether it is fair and
reasonable to exclude liability, having regard to the relative bargaining strengths of
the parties
B Whether it is fair and reasonable, with regard to all the circumstances which were, or
which ought to have been known to the parties when the contract was made
Are the following statements true or false?
1. Anticipatory breach may be implied from conduct and need not be explicit.
2. Where an innocent party elects to treat a contract as discharged, they waive the
right to claim damages from the party in default.
1. True
2. False. They may treat the contract as discharged and sue for damages.
Are the following statements true or false?
1. Damages for breach of contract are primarily intended to restore the injured party
,to the same position they were in at the time when the contract was made.
2 The claimant is required to take every opportunity to mitigate their loss arising as
a consequence of a breach of contract.
1. False. Damages are intended to put the party in the position they would have been in had
the contract been performed.
2. False. The claimant is required to take only reasonable steps, not ones that carry undue
risk or that are discreditable.
David lived next to a field owned by Frances. He wished to widen the access to his
property by two feet. When they met at the village fete, Frances agreed to transfer a
strip of land two feet wide and 30 feet long, provided David erected attractive
fencing. She also said that there was no need for him to pay for the land.
Which of the following best describes the agreement between Them?
Select one:
1. There is no contract because there is no consideration for the transfer of land
2. The contract is void because it is not in writing
3. The contract is voidable because it is not in writing Incorrect
4. The contract is unenforceable because it is not in writing
An agreement to transfer land should be written and is unenforceable if not. David's
agreement to erect fencing is consideration.
The correct answer is: The contract is unenforceable because it is not in writing
Janet owes George £500. Rhiannon telephones George and promises that she will
guarantee to pay the sum owed if Janet cannot or does not pay. Janet fails to pay the
£500 and so George writes a letter to Rhiannon demanding payment.
Which of the following best describes the legal position as to whether Rhiannon is
obliged to pay George the £500?
Select one:
1. There is a valid agreement between George and Rhiannon and she must pay
2. George's letter is written evidence of the terms of guarantee and Rhiannon must
pay
3. Rhiannon is not a party to the original contract which created the debt owed by
, Janet so she cannot be liable on the guarantee
4. The guarantee is unenforceable so Rhiannon is not liable
An oral guarantee needs to be evidenced in writing and signed or acknowledged by the
guarantor (Rhiannon). George's letter is therefore insufficient.
The correct answer is: The guarantee is unenforceable so Rhiannon is not liable
Are the following statements true or false?
1. An advertisement in a newspaper can never constitute a valid offer, as it is merely
an invitation to treat.
2. An offer can be made to the world at large
1. False. Although this is normally the case there may be exceptions. The advertisement in
Carlill v Carbolic Smoke Ball Co was held to be an offer, for example.
2. True
On 10 April, Lucy offered to sell her flute to Harriet for £300. Harriet said she'd pay
£275 for it. Lucy said she'd take £285 and Harriet should let her know (in writing) by
lunchtime Friday 14 April if she agreed to that price, because she was attending an
orchestra rehearsal on the Friday evening and, if Harriet didn't want it, she might sell
it there. Harriet posted her reply along with a cheque for £285 in the 7am post on
Friday. On Friday evening, Lucy sold the flute to Alice. The next day, Lucy receives
Harriet's cheque.
1. A valid contract exists at 7am on Friday when Harriet posts her acceptance of
Lucy's offer
2. A valid contract exists on Saturday when Lucy receives Harriet's cheque and Lucy
is in breach of contract
3. There is no valid contract because Lucy impliedly revokes her offer when she sells
the flute toAlice
4. There is no valid contract because Harriet does not affect a valid acceptance of i
Lucy required written notice to have reached her by lunchtime on Friday. This means that
the postal rule is not effective to render the acceptance valid when posted. By the time
Harriet's 'acceptance' is communicated, the offer has lapsed.
The correct answer is: There is no valid contract because Harriet does not affect a valid
acceptance of it while theoffer remains open and capable of acceptance
Pamela appears on 'Crimewatch' and offers £10,000 as a reward for anyone who can
provide information leading to the conviction of the thief who stole her family jewels.
