Contract Law MCQ QUESTIONS xx xx xx
AND
xx
ANSWERS WELL xx
ELLABORATED
xx
The x x owner x x of x x a x x bicycle x x wrote x x a x x letter x x to x x her
friend x x offering x x to x x sell x x her xxbicycle x x to x x him x x for
x x
x x £150. x x The x x friend x x received x x the x x letter x x on x x 18
x x January. x x On
19 x x January, x x he x x mailed x x a x x letter x x back x x saying x x that
x x he x x was x x not x x interested x x in xxpurchasing x x the x x bicycle
x x because x x he x x had x x just x x bought x x a x x gym x x membership.
xxHowever, x x the x x friend x x changed x x his x x mind x x on x x 20
x x January x x and x x posted x x a x x letter xxto x x the x x owner
x x accepting x x her x x offer x x to x x sell x x the x x bicycle x x and
x x enclosing x x a xxcheque x x for x x £150. x x The x x owner x x received
x x the x x friend's x x rejection x x letter x x on x x 21 xxJanuary x x but x x put
x x it x x aside x x without x x reading x x it. x x The x x next x x day, x x she
x x received x x the x x friend's x x acceptance x x letter, x x which x x she
x x opened x x and x x read x x immediately.
Do x x x x the x x x x parties x x x x have x x x x a x x x x contract?
a) Yes, x x because x x an x x acceptance x x is x x effective x x when x x it
x x is x x posted, x x whilst x x a xxrejection x x is x x effective x x when
x x received.
b) Yes, x x because x x the x x friend x x paid x x for x x the x x bicycle
x x when x x he x x accepted x x the xxoffer x x to x x buy x x it.
c) No, x x because x x the x x acceptance x x was x x dispatched x x after x x the
x x rejec x x - x x (A) x x Under xxthe x x postal x x rule, x x acceptance x x by
x x mail x x creates x x a x x contract x x at x x the x x moment x x of xxposting,
x x with x x a x x couple x x of x x exceptions x x not x x relevant x x here.
x x Rejection, x x on x x the xxother x x x x hand, x x is x x x x effective x x x x when x x
x x received. x x x x So, x x x x as x x the x x x x postal x x rule x x x x applies, xxthere x x is
x x a x x contract, x x because x x the x x friend's x x acceptance x x was
x x posted x x before x x his xxrejection x x letter x x was x x received.
\NNA x x man x x wanted x x to x x buy x x a x x car x x from x x his
x x nephew, x x who x x worked x x at x x a x x car xxdealership. x x The
x x two x x spoke x x on x x the x x phone x x to x x discuss x x a x x possible
x x sale, x x and xxafter x x offering x x to x x buy x x x x the x x car x x the
x x man x x concluded x x the x x phone x x call x x by x x saying, x x 'If x x I
x x hear x x no x x more x x about x x the x x car, x x I x x consider x x it
x x mine x x for x x £500'.
The x x nephew x x said x x nothing, x x but x x moved x x the x x car
, x x from x x the x x forecourt x x before xxleaving x x for x x his x x lunch
x x break. x x In x x his x x absence, x x another x x member x x of x x the
xxdealership's x x staff x x sold x x the x x car x x to x x a x x third x x party.
Was x x x x there x x x x a x x x x valid x x x x contract x x x x between x x x x the x x x x man x x x x and x x x x his
x x x x nephew?
a) Yes, x x x x the x x x x nephew's x x x x silence x x x x was x x x x an x x x x acceptance x x x x of x x x x the x x
x x man's x x x x offer.
b) Yes. x x By x x removing x x the x x car x x from x x the x x forecourt
x x the x x nephew x x had x x accepted xxthe x x man's x x offer x x by x x his
x x conduct.
c) No. x x x x The x x x x nephew x x x x did x x x x not x x x x communicate x x x x his x x x x acceptance x x
x x of x x x x the x x x x offer.
d) No. x x x x The x x x x offer x x x x was x x x x not x x x x certain x x x x and x x x x definite x x x x enough x x
x x to x x x x be x x x x valid.
e) No. x x There x x was x x no x x intention x x by x x the x x nephew x x to
x x be x x legally x x bound. x x - x x (C) xxFor x x an x x offer x x to x x be
x x validly x x accepted, x x the x x offeree x x must x x have x x communicated
xxtheir x x acceptance x x of x x the x x offer x x to x x the x x offeror.
\NNOn x x 1 x x July, x x a x x buyer x x orders x x goods x x from x x a
x x seller x x by x x email. x x The x x seller xxreplies x x by x x email x x on
x x 2 x x July, x x agreeing x x to x x the x x order, x x stating x x that x x its
standard x x x x conditions x x x x of x x x x sale x x x x apply x x x x and x x x x supplying x x x x a x x
x x copy. x x x x The x x x x buyer x x x x replies
, on x x 3 x x July, x x stating x x that x x their x x standard x x conditions
x x of x x purchase x x apply x x and xxalso x x supplying x x a x x copy.
x x On x x 4 x x July, x x the x x seller x x replies x x again x x that x x its
xxstandard x x conditions x x of x x sale x x apply. x x The x x seller x x then
x x delivers x x the x x goods x x on
5 x x July. x x The x x buyer x x unloads x x the x x goods, x x places
x x them x x in x x their x x warehouse, xxand x x uses x x them.
On x x what x x day x x was x x a x x contract x x formed x x and x x which
x x party's x x standard x x conditions xxapply?
a) 1 x x x x July; x x x x the x x x x buyer's x x x x under x x x x the x x x x first x x x x shot x x x x rule.
b) 2 x x x x July; x x x x the x x x x seller's x x x x under x x x x the x x x x first x x x x shot x x x x rule.
c) 3 x x x x July, x x x x the x x x x buyer's, x x x x under x x x x the x x x x last x x x x shot x x x x rule.
d) 4 x x x x July, x x x x the x x x x seller's, x x x x under x x x x the x x x x last x x x x shot x x x x rule.
e) 5 x x July, x x the x x seller's x x because x x the x x seller's x x reply x x of
x x 4 x x July x x was x x a xxcounteroffer x x which x x the x x buyer
x x accepted x x by x x unloading x x and x x using x x the x x goods.
- x x x x (E) x x No x x contract x x was x x x x formed x x until x x 5 x x July. x x
x x A x x x x response x x x x to x x x x an x x offer x x x x is xxnot x x an x x acceptance
x x if x x it x x seeks x x to x x change x x the x x terms x x of x x the
x x offer. x x The xxbuyer's x x 1 x x July x x order x x may x x have x x been
x x an x x offer, x x but x x the x x seller x x added x x a xxterm x x in x x its
x x 2 x x July x x response x x (that x x the x x seller's x x standard x x terms
x x had x x to x x be xxused), x x so x x that x x was x x a x x counteroffer
x x and x x not x x an x x acceptance. x x The x x buyer's x x 3
July x x response x x did x x the x x same, x x insisting x x on x x the
x x buyer's x x terms. x x Therefore, x x that xxresponse x x was x x a
x x counteroffer x x as x x well. x x And x x the x x seller's x x 4 x x July
x x response xxinsisting x x on x x their x x terms x x was x x also x x a
x x counteroffer x x as x x it x x did x x not x x accept x x the xxbuyer's x x terms.
x x However, x x the x x buyer x x will x x be x x held x x to x x have
x x accepted x x these xxterms x x and x x a x x contract x x was x x formed
x x when x x the x x buyer x x accepted x x the x x goods.
Therefore, x x x x the x x x x seller's x x x x standard x x x x conditions x x x x apply. x x x x This x x x x is x x
x x an x x x x example x x x x of
the x x battle x x of x x forms x x in x x which x x the x x battle x x usually
x x is x x won x x by x x the x x person x x who xxfires x x the x x last x x shot
x x (that x x is, x x sends x x the x x last x x form)
\NNTwo x x friends x x enter x x an x x agreement x x in x x writing. x x The
x x agreed x x terms x x are x x that xxfor x x one x x friend x x will x x pay
x x the x x other x x £50 x x if x x they x x stop x x complaining x x about x x the
xxweather.
Would x x x x this x x x x be x x x x a x x x x valid x x x x contract?
a) No. x x x x The x x x x consideration x x x x in x x x x this x x x x case x x x x is x x x x not x x x x sufficient.
b) No. x x x x The x x x x parties x x x x are x x x x friends x x x x and x x x x did x x x x not x x x x intend x x x x to
x x x x be x x x x legally x x x x bound.
c) No. x x This x x represents x x a x x bad x x bargain x x for x x the
x x party x x paying x x the x x £50, x x so xxthe x x courts x x would x x not
, x x enforce x x the x x contract.
d) Yes. x x x x All x x x x the x x x x elements x x x x for x x x x a x x x x valid x x x x enforceable x x x x contract
x x x x are x x x x present.
e) Yes. x x The x x consideration x x in x x this x x case x x is x x adequate.
x x - x x (A) x x Valid xxconsideration x x must x x be x x sufficient,
x x meaning x x that x x it x x must x x have x x some x x value xxeven x x if
x x very x x small. x x Wholly x x illusory x x consideration x x is x x not
x x sufficient x x in x x the xxeyes x x of x x the x x law, x x and x x a
x x promise x x to x x stop x x complaining x x would x x normally x x be
xxconsidered x x to x x be x x illusory.
\NNA x x paper x x manufacturer x x offers x x to x x sell x x 100 x x reams
x x of x x copier x x paper x x to x x a xxprinting x x business x x at x x £10
x x per x x ream. x x The x x offer x x is x x on x x the x x paper
xxmanufacturer's x x standard x x terms x x and x x conditions x x and
x x states, x x 'You x x are x x required xxto x x email x x acceptance x x of
x x any x x offer x x to x x supply x x to x x your x x sales x x associate x x by
xx5pm x x on x x the x x day x x the x x offer x x is x x made'. x x The
x x terms x x and x x conditions x x go x x on x x to xxstate x x that x x delivery
x x will x x be x x two x x weeks x x later x x and x x that x x payment x x is
x x required
AND
xx
ANSWERS WELL xx
ELLABORATED
xx
The x x owner x x of x x a x x bicycle x x wrote x x a x x letter x x to x x her
friend x x offering x x to x x sell x x her xxbicycle x x to x x him x x for
x x
x x £150. x x The x x friend x x received x x the x x letter x x on x x 18
x x January. x x On
19 x x January, x x he x x mailed x x a x x letter x x back x x saying x x that
x x he x x was x x not x x interested x x in xxpurchasing x x the x x bicycle
x x because x x he x x had x x just x x bought x x a x x gym x x membership.
xxHowever, x x the x x friend x x changed x x his x x mind x x on x x 20
x x January x x and x x posted x x a x x letter xxto x x the x x owner
x x accepting x x her x x offer x x to x x sell x x the x x bicycle x x and
x x enclosing x x a xxcheque x x for x x £150. x x The x x owner x x received
x x the x x friend's x x rejection x x letter x x on x x 21 xxJanuary x x but x x put
x x it x x aside x x without x x reading x x it. x x The x x next x x day, x x she
x x received x x the x x friend's x x acceptance x x letter, x x which x x she
x x opened x x and x x read x x immediately.
Do x x x x the x x x x parties x x x x have x x x x a x x x x contract?
a) Yes, x x because x x an x x acceptance x x is x x effective x x when x x it
x x is x x posted, x x whilst x x a xxrejection x x is x x effective x x when
x x received.
b) Yes, x x because x x the x x friend x x paid x x for x x the x x bicycle
x x when x x he x x accepted x x the xxoffer x x to x x buy x x it.
c) No, x x because x x the x x acceptance x x was x x dispatched x x after x x the
x x rejec x x - x x (A) x x Under xxthe x x postal x x rule, x x acceptance x x by
x x mail x x creates x x a x x contract x x at x x the x x moment x x of xxposting,
x x with x x a x x couple x x of x x exceptions x x not x x relevant x x here.
x x Rejection, x x on x x the xxother x x x x hand, x x is x x x x effective x x x x when x x
x x received. x x x x So, x x x x as x x the x x x x postal x x rule x x x x applies, xxthere x x is
x x a x x contract, x x because x x the x x friend's x x acceptance x x was
x x posted x x before x x his xxrejection x x letter x x was x x received.
\NNA x x man x x wanted x x to x x buy x x a x x car x x from x x his
x x nephew, x x who x x worked x x at x x a x x car xxdealership. x x The
x x two x x spoke x x on x x the x x phone x x to x x discuss x x a x x possible
x x sale, x x and xxafter x x offering x x to x x buy x x x x the x x car x x the
x x man x x concluded x x the x x phone x x call x x by x x saying, x x 'If x x I
x x hear x x no x x more x x about x x the x x car, x x I x x consider x x it
x x mine x x for x x £500'.
The x x nephew x x said x x nothing, x x but x x moved x x the x x car
, x x from x x the x x forecourt x x before xxleaving x x for x x his x x lunch
x x break. x x In x x his x x absence, x x another x x member x x of x x the
xxdealership's x x staff x x sold x x the x x car x x to x x a x x third x x party.
Was x x x x there x x x x a x x x x valid x x x x contract x x x x between x x x x the x x x x man x x x x and x x x x his
x x x x nephew?
a) Yes, x x x x the x x x x nephew's x x x x silence x x x x was x x x x an x x x x acceptance x x x x of x x x x the x x
x x man's x x x x offer.
b) Yes. x x By x x removing x x the x x car x x from x x the x x forecourt
x x the x x nephew x x had x x accepted xxthe x x man's x x offer x x by x x his
x x conduct.
c) No. x x x x The x x x x nephew x x x x did x x x x not x x x x communicate x x x x his x x x x acceptance x x
x x of x x x x the x x x x offer.
d) No. x x x x The x x x x offer x x x x was x x x x not x x x x certain x x x x and x x x x definite x x x x enough x x
x x to x x x x be x x x x valid.
e) No. x x There x x was x x no x x intention x x by x x the x x nephew x x to
x x be x x legally x x bound. x x - x x (C) xxFor x x an x x offer x x to x x be
x x validly x x accepted, x x the x x offeree x x must x x have x x communicated
xxtheir x x acceptance x x of x x the x x offer x x to x x the x x offeror.
\NNOn x x 1 x x July, x x a x x buyer x x orders x x goods x x from x x a
x x seller x x by x x email. x x The x x seller xxreplies x x by x x email x x on
x x 2 x x July, x x agreeing x x to x x the x x order, x x stating x x that x x its
standard x x x x conditions x x x x of x x x x sale x x x x apply x x x x and x x x x supplying x x x x a x x
x x copy. x x x x The x x x x buyer x x x x replies
, on x x 3 x x July, x x stating x x that x x their x x standard x x conditions
x x of x x purchase x x apply x x and xxalso x x supplying x x a x x copy.
x x On x x 4 x x July, x x the x x seller x x replies x x again x x that x x its
xxstandard x x conditions x x of x x sale x x apply. x x The x x seller x x then
x x delivers x x the x x goods x x on
5 x x July. x x The x x buyer x x unloads x x the x x goods, x x places
x x them x x in x x their x x warehouse, xxand x x uses x x them.
On x x what x x day x x was x x a x x contract x x formed x x and x x which
x x party's x x standard x x conditions xxapply?
a) 1 x x x x July; x x x x the x x x x buyer's x x x x under x x x x the x x x x first x x x x shot x x x x rule.
b) 2 x x x x July; x x x x the x x x x seller's x x x x under x x x x the x x x x first x x x x shot x x x x rule.
c) 3 x x x x July, x x x x the x x x x buyer's, x x x x under x x x x the x x x x last x x x x shot x x x x rule.
d) 4 x x x x July, x x x x the x x x x seller's, x x x x under x x x x the x x x x last x x x x shot x x x x rule.
e) 5 x x July, x x the x x seller's x x because x x the x x seller's x x reply x x of
x x 4 x x July x x was x x a xxcounteroffer x x which x x the x x buyer
x x accepted x x by x x unloading x x and x x using x x the x x goods.
- x x x x (E) x x No x x contract x x was x x x x formed x x until x x 5 x x July. x x
x x A x x x x response x x x x to x x x x an x x offer x x x x is xxnot x x an x x acceptance
x x if x x it x x seeks x x to x x change x x the x x terms x x of x x the
x x offer. x x The xxbuyer's x x 1 x x July x x order x x may x x have x x been
x x an x x offer, x x but x x the x x seller x x added x x a xxterm x x in x x its
x x 2 x x July x x response x x (that x x the x x seller's x x standard x x terms
x x had x x to x x be xxused), x x so x x that x x was x x a x x counteroffer
x x and x x not x x an x x acceptance. x x The x x buyer's x x 3
July x x response x x did x x the x x same, x x insisting x x on x x the
x x buyer's x x terms. x x Therefore, x x that xxresponse x x was x x a
x x counteroffer x x as x x well. x x And x x the x x seller's x x 4 x x July
x x response xxinsisting x x on x x their x x terms x x was x x also x x a
x x counteroffer x x as x x it x x did x x not x x accept x x the xxbuyer's x x terms.
x x However, x x the x x buyer x x will x x be x x held x x to x x have
x x accepted x x these xxterms x x and x x a x x contract x x was x x formed
x x when x x the x x buyer x x accepted x x the x x goods.
Therefore, x x x x the x x x x seller's x x x x standard x x x x conditions x x x x apply. x x x x This x x x x is x x
x x an x x x x example x x x x of
the x x battle x x of x x forms x x in x x which x x the x x battle x x usually
x x is x x won x x by x x the x x person x x who xxfires x x the x x last x x shot
x x (that x x is, x x sends x x the x x last x x form)
\NNTwo x x friends x x enter x x an x x agreement x x in x x writing. x x The
x x agreed x x terms x x are x x that xxfor x x one x x friend x x will x x pay
x x the x x other x x £50 x x if x x they x x stop x x complaining x x about x x the
xxweather.
Would x x x x this x x x x be x x x x a x x x x valid x x x x contract?
a) No. x x x x The x x x x consideration x x x x in x x x x this x x x x case x x x x is x x x x not x x x x sufficient.
b) No. x x x x The x x x x parties x x x x are x x x x friends x x x x and x x x x did x x x x not x x x x intend x x x x to
x x x x be x x x x legally x x x x bound.
c) No. x x This x x represents x x a x x bad x x bargain x x for x x the
x x party x x paying x x the x x £50, x x so xxthe x x courts x x would x x not
, x x enforce x x the x x contract.
d) Yes. x x x x All x x x x the x x x x elements x x x x for x x x x a x x x x valid x x x x enforceable x x x x contract
x x x x are x x x x present.
e) Yes. x x The x x consideration x x in x x this x x case x x is x x adequate.
x x - x x (A) x x Valid xxconsideration x x must x x be x x sufficient,
x x meaning x x that x x it x x must x x have x x some x x value xxeven x x if
x x very x x small. x x Wholly x x illusory x x consideration x x is x x not
x x sufficient x x in x x the xxeyes x x of x x the x x law, x x and x x a
x x promise x x to x x stop x x complaining x x would x x normally x x be
xxconsidered x x to x x be x x illusory.
\NNA x x paper x x manufacturer x x offers x x to x x sell x x 100 x x reams
x x of x x copier x x paper x x to x x a xxprinting x x business x x at x x £10
x x per x x ream. x x The x x offer x x is x x on x x the x x paper
xxmanufacturer's x x standard x x terms x x and x x conditions x x and
x x states, x x 'You x x are x x required xxto x x email x x acceptance x x of
x x any x x offer x x to x x supply x x to x x your x x sales x x associate x x by
xx5pm x x on x x the x x day x x the x x offer x x is x x made'. x x The
x x terms x x and x x conditions x x go x x on x x to xxstate x x that x x delivery
x x will x x be x x two x x weeks x x later x x and x x that x x payment x x is
x x required
