Chapter 23 Self-test questions

. In which of the following circumstances might section 6 of the Sale of Goods Act 1979 apply?

A negotiates with B for the purchase of a large quantity of leaves for a fashion show. By the time the contract is signed, the leaves have decomposed.

A negotiates to rent a house from B which will be used to host a television show. By the time the contract is signed, the house has been destroyed due to a fire caused by B leaving the oven on.

A contracts to purchase a yacht from B. The yacht never existed.

All of the options given are correct.

. Does Couturier v Hastie stand for the proposition that a contract of sale is void if the subject matter has ceased to exist without the knowledge or fault of the parties?

Yes

No

. Which of the following was not said by the Court of Appeal in The Great Peace to be an element which must be establish for a contract to be void for common mistake?

There must be a common assumption as to the existence of a state of affairs.

There must be no warranty by either party that that state of affairs exists.

The non-existence of the state of affairs must not be attributable to the fault of either party.

The non-existence of the state of affairs must render performance of the contract different from that what the parties contemplated.

The non-existence of the state of affairs must render performance of the contract impossible.

The state of affairs may be the existence, or a vital attribute, of the consideration to be provided or circumstances which must subsist if performance of the contractual adventure is to be possible.

. How did Denning LJ in Solle v Butcher explain the decision in Bell v Lever Bros that the contract was not voidable?

It was not important to the contract that the employment could be terminated without compensation.

The House of Lords had overlooked equity.

The difference in economic terms was far less.

Denning LJ did not refer to Bell v Lever Bros.

. The Great Peace is controversial for three main reasons. Which of the following is not one of those reasons?

The overruling of Solle v Butcher was not necessary for the decision.

There was nothing on the facts of the case to justify the overruling of another Court of Appeal decision.

Solle v Butcher had already overruled House of Lords authority.

Solle v Butcher was desirable for its remedial flexibility.

. Can a contract concluded on the basis of a common mistake ever be treated as voidable rather than void?

Yes

No

. A decides to go and see his favourite diver compete in a diving event in London. Competitors are eliminated from the competition in each round of the diving event. A books a room in a hotel run by B until the final event 7 days later. The booking was made and confirmed at 1pm, but unknown to both parties, the diver had made an announcement at 12pm that he was too injured to compete. A claims that the contract is void. What reason(s) suggest(s) that A's claim will fail.

There was no guarantee the diver would compete to the very end of the competition.

The event was still going ahead.

A had booked to stay until the end of the competition.

All of the options given are correct.

. A purchases a car from B which both parties believe to be in working order. After A purchases the car, he realises that the car does not actually start and it requires a new engine. Is it likely that A can claim that the contract is void?

Yes

No

Chapter 23 Self-test questions

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