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WorksheetsCFAB Trial 3: PT1
Total questions: 26
Worksheet time: 16mins
Identify whether the following statements regarding obligations of the seller under the UN Convention on Contracts for the International Sale of Goods are true or false.
-To deliver the goods to the buyer before the agreed delivery time.
-To deliver goods that have reasonable quality.
True
False
True
False
Are the following statements true or false?
- Under Sharia Law, riba is the concept of unlawful gain.
-To be compliant with Sharia Law, Islamic finance savings and lending arrangements should be structured to avoid the earning of profit.
True
False
True
False
Monika has sold goods to a buyer in another state and will be transporting the goods by air. Which of the following ICC Incoterms should she include in the contract?
FAS
FOB
CFR
DDP
Which of the following statements regarding alternative dispute resolution is correct?
Arbitration hearings are heard in a courtroom.
To use arbitration, the parties must have entered into an arbitration agreement.
Mediation involves the use of a legally qualified expert to decide on how the dispute should be resolved.
Damages are the only remedy available under alternative dispute resolution.
Which of the following statements regarding the tracks for civil cases is correct?
Cases with a value of over £25,000 may be allocated either to the fast track or the multitrack.
Cases allocated to the multitrack are heard at the High Court.
Cases allocated to the fast track are heard at a Magistrates' Court.
Cases with a value of between £10,000 and £25,000 are allocated to the small claims track.
Are the following statements true or false?
-The law will not interfere with the freedom of contracting parties to enter into a contract on whatever terms they choose, provided the contract is not illegal.
-A contract will be void if it offends public policy.
True
False
True
False
Christine knows that Howell has been looking to buy a violin made by the French violin maker, Jean-Paul Marchais, for many years. Christine inherits her mother's violin and offers to sell it to Howell for £10,000. Christine apologises for the absence of paperwork but assures Howell that it is a Marchais violin. Howell pays £10,000 to Christine. When he takes the violin to be repaired, he is told that the violin actually dated from 100 years following Marchais' death and was a mass-produced instrument.
Which of the following best describes the legal position?
There is no contract because Howell accepted something other than the thing that was actually offered.
There is no contract because Howell had no intention to create legal relations in respect of a mass-produced violin.
The contract is voidable and Howell can return the violin and recover his £10,000, assuming there is no legal bar to this remedy.
The contract contains all the essential elements of a valid contract and is therefore binding. Howell should have made enquiries before payment.
As a general rule, can a party recover goods from a third party where the contract turns out to be invalid but:
-Void?
-Voidable?
Yes
No
Yes
No
Janet owes Ivan £500. Rhiannon telephones Ivan 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 Ivan writes a letter to Rhiannon demanding payment. Which of the following best describes the legal position as to whether Rhiannon is obliged to pay Ivan the £500?
There is a valid agreement between Ivan and Rhiannon and she must pay.
Ivan's letter is written evidence of the terms of guarantee and Rhiannon must pay.
Rhiannon is not a party to the original contract which created the debt owed by Janet so she cannot be liable on the guarantee.
The guarantee is unenforceable so Rhiannon is not liable.
Will runs a market stall. His prize cauliflowers are priced at £1 each. Sofia picks out one cauliflower and hands Will £1, but Will refuses to accept the money or to allow Sofia to take a cauliflower.
-Has Will made an offer to sell the cauliflower selected by Sofia?
-Has Sofia made an offer to buy the cauliflower that she selected?
Yes
No
Yes
No
Are the following statements true or false?
-In the event of a dispute about whether a contract is supported by consideration, the courts will determine if the alleged consideration is adequate.
-In the event of a dispute about whether a contract is supported by consideration, the courts will determine if the alleged consideration is sufficient.
True
False
True
False
Lucia had entered into a contract to design and build a summer house for Janet's garden for the sum of £800. Although she was quick to produce plans and drawings, she still had not purchased the necessary materials after three months. Janet's mother, fearing that the summer was likely to be over before the summer house was in place, offered Lucia an additional £100 to build it immediately. Lucia completed the building work. Is she entitled to claim the £100 from Janet's mother?
No, because she was already bound to build the summer house anyway.
Yes, because her existing obligation to build the summer house was owed to Janet, not Janet's mother.
No, because Janet's mother did not intend to create legal relations. She simply wanted to put pressure on Lucia.
Yes, but she cannot also demand payment from Janet because she has effectively agreed to a new price for the same work and waived the original claim.
Esther agreed to bake and freeze 100 birthday cakes for her friend Jannie, who was planning to open a small cake shop, at a total price of £200. When Esther had frozen 60 cakes, she learned that Jannie had been unable to secure a shop lease. She telephoned Jannie to confirm that she had baked 60 cakes and was all ready to bake the last 40, but Jannie said she had decided to go back to teaching instead. Which of the following best describes the legal position?
Esther has no cause of action against Jannie because she could have avoided any loss by waiting until Jannie had secured the lease.
Esther has no cause of action against Jannie because she can still use or sell the cakes, so she has not suffered any loss.
Esther can recover the agreed sum of £200 from Jannie because she would have been entitled to this sum had Jannie not been in breach of contract.
Jannie is in breach of contract and Esther can sue for damages or bring a quantum meruit claim for £120 in respect of the 60 cakes already prepared.
Marco employed Joleen to build him a sailing boat. He specified that he wanted the hull to be painted 'Moisture Blue' and that the tow straps should be webbed nylon. The agreed contract price was £5,000, payable on delivery of the boat. When Joleen delivered the boat, Marco discovered that Joleen had actually used 'Sky Blue' paint and that the tow straps were made from a different material. Apart from these points Marco was pleased with Joleen's work. Which of the following best describes the legal position?
Joleen has substantially performed her contractual obligations and is entitled to receive the contract price.
The contract has been sufficiently discharged and Marco must pay Joleen the agreed contract price.
Joleen is entitled to receive the contract price less a sum in respect of those obligations that were not properly performed.
Joleen has not performed her contractual obligation properly and is therefore not entitled to receive any payment until she rectifies the outstanding defects.
Jemima arranged a weekend holiday with Hassle Free Holidays Ltd, booking the Riverside Hotel and paying a deposit in advance. The night before she was due to travel, the Riverside Hotel was burned down and Hassle Free Holidays Ltd claimed that it could keep her deposit but was under no further obligation to Jemima because the contract had been discharged by frustration.
-Has the contract been discharged by frustration?
-As a general rule, where a contract is discharged by frustration, should any deposit received be repaid?
Yes
No
Yes
No
Lord Evans engaged Gavin to ride his horse in a famous horse race. Three months before the race, Gavin wrote to Lord Evans saying that he was not willing to ride the horse in the race. Lord Evans wrote back to Gavin saying that he has decided to treat the contract as discharged. Which of the following statements is correct?
Lord Evans remains liable to Gavin for any contractual obligations on his part which had arisen before Gavin pulled out of the contract.
Lord Evans remains liable to Gavin for any contractual obligations on his part.
Lord Evans cannot claim damages from Gavin because Gavin withdrew from the contract before performance was due.
Lord Evans can claim damages for any loss he has suffered but his right to do so is operative only from the date of the race.
Barney, who operates a vehicle transporter, agreed to deliver a new van to Norma who ran a business delivering refrigerated foods to households in Scotland. Barney had mechanical problems with the transporter and ended up being 15 days late reaching Norma. Norma sued Barney for:
(1) the loss of earnings from her inability to make her usual deliveries;
(2) the loss of a special contract that she had entered into with a local food supply company to store 50 kg of fresh lobster over the four days when she would not be using the van. She had expressly told Barney about this contract; and
(3) distress which was caused to Norma because she let down her usual customers.
What can Norma recover in damages?
1 only
1 & 2 only
1, 2 & 3
2 & 3 only
Crunch Ltd agreed to sell its factory to Cool Cookies Ltd for £590,000 but after contracts were exchanged, the market value increased considerably and Crunch Ltd sold the factory to Krisp plc for £700,000. There was no other available property that was comparable.
What is the normal remedy that is awarded by the court in the event of a breach of contract for the sale of property?
Specific performance
damages
110,000
590,000
Alain retired as a partner of Le Gourmet, a business with three French restaurants in London, but neither he nor the remaining partners, Pierre and Marie, informed the firm's supplier of French cheese. Alain used some old letterheaded paper (showing the three partners' names) to order a large amount of expensive cheese for Christmas. The supplier sent the invoice to Le Gourmet's office. Which of the following statements best describes the legal position?
Le Gourmet is not bound by the contract because Alain is no longer a partner.
Le Gourmet is not bound to settle the invoice because Alain has no authority.
Le Gourmet is bound by the contract because an agency by estoppel has arisen.
Le Gourmet is obliged to settle the invoice because Alain gave the impression that he was still a partner.
Wasim entered into a contract to take a lease of a new waterside office being built in Stratford once the building work was complete. Shortly after entering into contract, Wasim's solicitor advised him that he should incorporate his business in order to lessen his potential liabilities and to improve his tax position. Wasim did so and re-established his business in the name of Wasim Ltd.
-Can Wasim Ltd ratify the contract entered into by Wasim and complete the lease?
-If the other party to the contract fails to complete the building in Stratford, who could sue for breach of contract?
Yes
No
Wasim
Wasim Ltd
Nadeem owns a boat yard and is appointed to sell Martin's yacht for him. In carrying out this task, Nadeem buys a half page of advertising in Yachts' Monthly at a cost of £400. Martin did not tell him to advertise in magazines and had rather expected that Nadeem would simply sell it to one of his regular customers, although the matter had never been discussed. Martin refuses to pay the bill for the advertisement when it is forwarded by Nadeem. Which of the following best describes the legal position?
Martin is liable to pay the bill because he gave Nadeem express authority to sell.
Martin is liable to pay because Nadeem had implied incidental authority.
Martin is not bound to pay because Nadeem did not have the necessary authority.
Martin is not bound to pay because such authority cannot be implied without further evidence.
Harold decided to take over Bloggs Ltd solely on the grounds that he wished to acquire the use of certain property owned by Bloggs Ltd. Harold's bid price reflected his desire to take over the company but also took into account the profitability of Bloggs Ltd as set out in its most recent accounts. It later turned out that the accounts of Bloggs Ltd had been prepared negligently and should have shown a smaller profit than they did. Since there is no disclaimer of liability in the accounts, Harold sues the accountants who prepared them. Will Harold succeed in an action for negligence against the firm?
Yes, the firm owed him a duty of care because it knew that Bloggs Ltd was considering the possibility of seeking outside finance.
Yes, the firm owed a duty of care to every person who might be expected to see the accounts.
No, the firm owed no duty of care to a potential takeover bidder.
No, Harold's loss was not caused by the accounts since he was going to take over the company in any event.
Mohammed was a shareholder in Blip plc. When he read the annual accounts, he sold his entire shareholding because the accounts revealed a loss and the projections were not favourable. It later became clear that the accounts had been prepared negligently and, in fact, the company was in an extremely healthy financial state. Mohammed sued the firm of accountants that prepared the accounts, Dodi & Co. There was no disclaimer of liability in the accounts. Is Dodi & Co liable to Mohammed in negligence?
Dodi & Co is liable because it owed a duty of care to all existing shareholders.
Dodi & Co is liable because Mohammed's losses were incurred as a direct result of reading the accounts.
Dodi & Co is not liable because it did not owe a duty of care to existing shareholders considering their investments.
Dodi & Co is not liable because investors in the stock market do so at their own risk.
Geary & Smith, a firm of accountants, audited Musica Ltd and, due to the negligence of the audit manager, misrepresented the company's financial position. Geary & Smith had known that Moments Musicaux plc had been promised a set of the audited accounts as soon as they were available in order to help it in proposing a takeover bid price that would be acceptable to the shareholders in Musica Ltd. There was no disclaimer of liability in the audit report. Can Moments Musicaux plc sue Geary & Smith in the tort of negligence?
No, because its loss is purely financial and it should have carried out its own professional investigation into the accuracy of the accounts.
No, because no duty of care is owed to potential investors, only to the existing body of shareholders as a whole.
Yes, because when a takeover is anticipated, a special relationship arises between accountants and all recipients of the accounts.
Yes, because Moments Musicaux plc was a bidder known to Geary & Smith to be highly likely to rely on the accounts.
Xavier is a coach driver. One day, when driving a school class to a museum for the day, he agrees to take them on a detour to see a new statue of a famous footballer that has been erected in the town square. While on the detour, he causes an accident in which two of the children are injured.
-Is Xavier acting in the course of his employment?
-Is Xavier's employer vicariously liable?
Yes
No
Yes
No
Alexei was a passenger in Martin's car when it was involved in an accident due to Martin's negligence. It was reasonably foreseeable that Alexei would suffer some degree of personal injury, but in fact the degree of injury was surprisingly serious.
Can Alexei recover damages for the injuries he actually suffered or only for the level of injury which was reasonably foreseeable?
All injuries suffered
Reasonably foreseeable injuries only
Only if the manner in which the injuries were inflicted was reasonably foreseeable
However, the injuries came about
