Chapter 5 Self-test questions

. A agrees to sell B a television and a contract is written to this effect, signed by both parties. There is no price clause in the contract. This is still an enforceable agreement. True or False?

True

False

. When is an agreement executory?

When performance has been completed by both parties.

When performance lies in the future, and nothing has been done to carry out the agreement.

Both of the options given are correct.

Neither of the options given is correct.

. A agrees to purchase birdseed from B 'at a price to be agreed'. B delivers the birdseed to A. Must A pay B for the birdseed?

No, there is no price point at which A's obligation to pay B can be set.

Yes, A must pay B the price that B requests from A.

Yes, A must pay B a reasonable sum.

. Why do courts refuse to enforce 'an agreement to negotiate in good faith?

It lacks the necessary certainty.

It is liable to be entered into by duress.

It is repugnant to the principle of freedom of contract.

All of the options given are correct.

. A contracts to purchase B's land. The agreement states that the price is to be set by the valuer, C. C owns property near to B and wants to drive up property prices, so prices the property at £1.5 million. The market rate is £1 million. Must A simply accept the contract price of £1.5 million?

Yes

No

. Which of the following could not be enforceable as a valid agreement?

Agreements to buy land 'subject to the mortgage which has been agreed in principle being formally approved by the bank'.

Agreements to purchase goods 'subject to the opening of a credit by the purchaser'.

An agreement to buy property 'subject to suitable neighbours, in the eyes of the buyer, being identified'.

None of the options given is correct.

. Which of the following could be enforceable as a valid agreement?

An agreement to buy goods which contains the term: 'the price to be paid, and the date for delivery, shall be agreed upon from time to time'.

An agreement to buy goods which is on 'sale of goods terms'.

An agreement to buy goods which does not mention the price or the date.

None of the options above.

Chapter 5 Self-test questions

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