Chapter 1 End of Chapter Questions

. Which of the following scenarios could give rise to a contractual duty?

A train company driving passengers from Edinburgh to London.

A soft drinks company offering a free gift on the presentation of three bottle lids.

A shop offering an item of clothing for sale.

All of the options given are correct.

. Which of the following would be a valid contract?

A document signed by A and B setting out what each to do for the other.

An oral promise between A and B that A will sell his car to B.

A advertises in a newspaper that if anyone completes a 50km walk she will give them a £50 reward. B completes the walk after reading the advertisement.

All of the options given are correct.

. Which of the following could give rise to a binding contract?

A promises to give B £50 for B's birthday.

A promises to let B stay at A's house overnight if B fixes the roof of the house.

A promises to give B his car to drive to London.

All of the options given are correct.

. Out of the following examples, which is a unilateral contract?

A writes in a newspaper offering £50 to anyone who returns A's cat.

A says to B that he will give B £20 if B can provide him with information about his lost son.

A school offers to give extra lessons to anyone who fails a test on their first attempt.

All of the options given are correct.

. Which of the following best describes the idea of 'freedom of contract'?

Parties are free to agree on the terms of the contract.

Contractual obligations arise through consent.

Parties are free to choose not to enter into a contract.

All of the options given are correct.

. What criticism is made of the will theory of the law of contract?

It is not reconcilable with the law being concerned with promoting fairness, trust and cooperation between parties.

It is not consistent with the traditional, liberal approach to contract law.

It assumes that contractual obligations arise because of the promise itself.

It does not explain how the parties are able to mould their obligations to one another.

. Richard Posner argued that contract law promoted economic efficiency by allowing a party to escape his contract with another by paying damages, and profit from taking a more lucrative contract with another. What is the potential flaw with this argument?

It ignores the costs associated with negotiating and litigating for breach of contract

Breach of contract is an unlawful act, and should not be encouraged.

Courts may order specific performance of contractual obligations.

All of the options given are correct.

. Which of the options below are derived from equity rather than the common law?

Interpretation.

Injunctions.

Estoppel.

Compensatory damages.

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