UNIT B - MCQ2

In relation to contract law, how long will an offer remain open if no time period is set for its expiry?

• 1 month

• 1 day

• For a reasonable time

Which of the following statements concerning the law and contracts is correct?

• The law will only interfere in contracts where one party abuses a stronger bargaining position The law does not interfere in the formation of contracts

• The law seeks to ensure equal bargaining power between parties

• The law seeks to maintain the bargaining power of parties in a contract

Which of the following would be regarded as valid, binding acceptance?

• A counter-offer

• Acceptance subject to contract'

• A tender to perform one task

• Posting a letter of acceptance

Which of the following statements regarding the adequacy and sufficiency of consideration is correct?

• Consideration does not need to have a value to be sufficient

• Consideration is sufficient if it has some economic value

• Consideration does not need to be sufficient but must be adequate

In relation to exclusion clauses, which of the following describes the main purpose rule?

• The purpose of an exclusion clause is not to prevent the main purpose of the contract

• The main purpose of an exclusion clause is to help a weaker party avoid unfair contractual obligations

• The main purpose of an exclusion clause is to give business efficacy to a contract

Which of the following statements concerning exclusion clauses is correct?

• Exclusion clauses can be incorporated into a contract after the contract is formed

• Exclusion clauses are interpreted by the courts strictly

• Exclusion clauses are not regulated by statute

• Exclusion clauses may not exclude liability for negligence

Which of the following is an example of a valid offer?

• A display of goods for sale

• An Internet shop that advertises products for sale

• A newspaper advert that includes a specific statement, made to the world at large, offering a reward for the return of a particular item

• An invitation for potential suppliers to tender for the provision of services

Which of the following is executed consideration?

• promise of payment in return for the provision of goods at a later date

• A promise to pay for work already carried out

• Providing goods in return for payment at the same time

Which of the following is NOT an exception to the rule of privity of contract?

• A third party to a contract can bring an action under it if an implied trust has been created

• A third party to a contract can sue for losses they incur under a contract if the losses are foreseeable

• A third party to a contract can enforce rights under it if it is equitable for them to do so

Which TWO of the following statements regarding contractual terms are correct?

(1) The principle of freedom of contract states that parties may include in their contract any terms that they see fit

(2) To be valid, a contract must be complete in its terms

(3) Third parties may not determine an essential term of the contract

(4) Where a term is classified as a condition, the only remedy to an injured party if it is breached is to claim damages

• 1 and 2

• 1 and 4

• 2 and 3

• 2 and 4