Chapter 9 End of Chapter Questions

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. Legislation may provide that a contract must be made in writing, or that a contract is not enforceable unless evidenced in writing. Is it true that, if there are no written formalities, the contract will be void in both instances?

True correct incorrect

False correct incorrect

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. Which of the following is not a rationale for having written formalities?

The document serves as good evidence of the contract made. correct incorrect

Parties are more likely to check the document if it is formally written down. correct incorrect

The writing down of the contract serves as a simple, objective test of enforceability. correct incorrect

Formality requirements make it easier to achieve a 'fair' result. correct incorrect

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. Alan owes a debt of £100 to Brian. Alan's mother, Cathy, contracts with Brian that she will make good Alan's debt, but wants to give him a chance to do so first. The contract between Brian and Cathy is not recorded in writing. Is it enforceable?

Yes correct incorrect

No correct incorrect

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. Which of the following is not a limit on the ambit of section 4 of the Statute of Frauds?

It does not apply where C provides an indemnity for A. correct incorrect

It does not apply where C gives the guarantee in order to secure the release by A of an encumbrance affecting C's proprietary rights. correct incorrect

It does not apply where C's promise to pay is conditional on A failing to do so. correct incorrect

It does not apply where C's guarantee is part of a wider transaction. correct incorrect

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. Which of the following could not be an enforceable guarantee?

A tells B that he will guarantee C's debt to B. correct incorrect

A writes a letter to B saying he will guarantee C's debt to B. correct incorrect

A emails B saying "I will guarantee C's debt to you, Best wishes, A". correct incorrect

A texts B saying "I will guarantee C's debt to you". correct incorrect

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. A contracts to purchase B's land. The written contract states that the completion date is to be 14 October 2016. B subsequently agrees orally with A that the completion date can be delayed to 31 October 2016. When is the valid completion date?

14 October 2016 correct incorrect

31 October 2016 correct incorrect

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. Which of the following agreements is not covered by section 2 of the Law of Property (Miscellaneous Provisions) Act 1989?

A agrees to sell his land to B. correct incorrect

A contracts with B to provide him with the option to purchase A's land. correct incorrect

A agrees with B that he will not consider any other offers for the purchase of his land other than B for the duration of the month. correct incorrect

None of the options given is correct. correct incorrect

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. C promises B that C will pay the £1000 that A owes to B if A does not pay the debt within a month. B asks for this in writing and C replies that there is no need as C is trustworthy. In reliance on this, B goes to buy a new television for her home. After two months, neither A or C have paid B. C refuses to honour the guarantee. Does B have any valid claim against C?

Yes, B has a claim in estoppel as B relied on the promise by C to his detriment by purchasing a new television he would not have purchased otherwise. correct incorrect

No, because C's promise was not in writing. correct incorrect