BESY - Chapter 1 - Contract - Part 2

Which of the following statements are true of a valid consideration:

i. Must be of adequate and sufficient value

ii. Must move from the promisee

iii. Must be given in every binding agreement

iv. May be given before a promise in return

• ii and iii

• iii and iv

• i, ii, and iii

• ii, iii and iv

Consideration must be sufficient but need not be adequate

• True

• False

Past consideration is not a valid consideration.

• True

• False

A person can only accept an offer if they know about it

• True

• False

Which of the following methods will not termination an offer?

• Express rejection

• Lapse of time

• Revocation

• Counter offer

• Ratio decidendi

Bobby puts a prominent notice at the front of his car window reading 'Car for sale, excellent motor, full service history. Will sell for offers in excess of £500'. How would you describe the legal effect of this notice?

• It is an offer

• it is a tender invitation

• it is an invitation to treat

• it is a deed

In an unenforceable contract, the contract is valid but performance by one party cannot be enforced

• True

• False

For social and domestic arrangements, where the spouses are separating, intention to create legal relations will be presumed by the courts

• True

• False

.......................occurs where one party breaks a term of the contract by declaring in advance that they will not be carrying out their part of the contract

• Repudiatory breach

• Anticipatory breach

• Rescisionary breach

• Considerable breach

.Where the courts interpret the liquidated damages to be unfair and punitive, it will be referred to as

• Repudiatory clause

• Anticipatory clause

• Rescisionary clause

• Penalty clause