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. In to order successfully enforce a contract according to the Contracts (Rights of Third Parties) Act 1999, a third party must show that it has provided consideration under the contract.

True correct incorrect

False correct incorrect

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. Which of the following statements relating to the test of enforceability in s. 1 of the Contracts (Rights of Third Parties) Act 1999 are true? [Please select all that apply.]

A third party must be in existence at the time the contract is made. correct incorrect

Where a contract expressly provides that it shall not be enforced by third parties, the 1999 Act will not apply. correct incorrect

A third party must be expressly identified in the contract. correct incorrect

A third party seeking to rely on s. 1(1)(b) (i.e. contract purports to confer a benefit on that party) must prove that the contracting parties intend the contract to be enforceable by it. correct incorrect

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. The Contracts (Rights of Third Parties) Act 1999 abolishes the common law doctrine of privity of contract.

True correct incorrect

False correct incorrect

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. Which one of the following statements relating to the hypothetical applicability of the Contracts (Rights of Third Parties) Act 1999 to the facts of New Zealand Shipping Co Ltd v A M Satterthwaite & Co Ltd, The Eurymedon [1975] AC 154 is true?

The 1999 Act would have been applicable to The Eurymedon because the Himalaya clause expressly gave the stevedore the right to enforce the clause. correct incorrect

The 1999 Act would have been applicable to The Eurymedon because the Himalaya clause purported to confer a benefit on the stevedore and there was no indication in the contract that the parties did not intend the clause to be enforced by the stevedore. correct incorrect

The 1999 Act would not have been applicable to The Eurymedon because the stevedore was not employed by the carriers at the time the contract was made. correct incorrect

The 1999 Act would not have been applicable to The Eurymedon because the stevedore did not provide any consideration for the Himalaya clause. correct incorrect

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. According to s. 2(1) of the Contracts (Rights of Third Parties) Act 1999, in which of the following circumstances may the contracting parties lose their rights to vary or cancel a contract term granting a third party rights without that third party's consent? [Please select all that apply.]

The third party has actual knowledge of the existence of the contract and the term. correct incorrect

The third party sends the promisor a letter to communicate its assent to the term and the letter is lost in transit. correct incorrect

The third party communicates its assent to the term to the promisor. correct incorrect

The third party relies on the term and the promisor knows, or ought reasonably to know, this. correct incorrect

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. The Contracts (Rights of Third Parties) Act 1999 preserves the promisee's right to enforce the promise but requires the promisee to pass any damages recovered from the promisor to the third party beneficiary.

True correct incorrect

False correct incorrect

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. Where a promise is made for the benefit of a third party and the promisee expressly declares itself to be a trustee, on behalf of the third party, of a right to enforce the promise, the third party may enforce the promise against the promisor in its own right.

True correct incorrect

False correct incorrect

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. A employs B Ltd to build a conservatory for her house. C, a self-employed glass supplier, indicates to A that, if B buys glass from him, he guarantees that his glass is of high quality and suitable for the conservatory. A instructs B to buy glass from C. B then enters into a contract with C for the purchase of glass, which does not mention A or her conservatory. The glass supplied by C proves to be defective. A attempts to claim damages from C. Which of the following statements are likely to be true? [Please select all that apply.]

A is not entitled to claim damages from C, because A is not a party to the contract for the sale of glass between B and C.
incorrect correct incorrect

A is entitled to claim damages from C, because the Contracts (Rights of Third Parties) Act 1999 applies.
incorrect correct incorrect

For A to have any rights against C, the contract between B and C must expressly confer such a right on A. correct incorrect

A is entitled to claim damages from C, because there is a separate contract between A and C in respect of the quality of the glass supplied by C. correct incorrect

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. A contacts B's company to hire a minibus to transport A and a group of other people to London. Due to the negligence of one of B's employees, the minibus breaks down in transit and A and other passengers have to pay a much higher fee to hire several taxis to complete the journey. A claims the difference between the total taxi fees and the hire from B. Which one of the following statements most accurately summarises the legal position between A and B?

A is entitled to the difference, because the difference is the loss actually suffered by A as a result of B's breach. correct incorrect

A is entitled to the difference, because A has contracted on behalf of other passengers and is entitled to recover damages for loss suffered by them. correct incorrect

A is not entitled to the difference, because it is not the loss actually suffered by A. correct incorrect

A is not entitled to the difference, because all that B is liable for is to refund the hire. correct incorrect

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. The general rule is that the promisee is not entitled to substantial damages if it suffers no loss from the breach, but this general rule is subject to exceptions. In which of the following circumstances is the promisee (B) unlikely to recover substantial damages on behalf of a third party (C) from the promisor (A)? [Please select all that apply.]

B employs A to carry out work on B's property and, at the time of contracting, A knows that the property is to be transferred to C when the work is completed. Due to A's negligence, the work is defective and causes damage to the property. correct incorrect

A says to C that, if C lets A carry out work on a property to be acquired by C from B in the near future, C guarantees that the work will be of satisfactory quality. C asks B to employ A to carry out the work and B does so. Due to A's negligence, the work is defective and causes damage to the property. correct incorrect

B employs A to carry out work on C's property and, at the time of contracting, A knows that the property belongs to C and that B will shortly assign his rights under the contract to C. B does so. Due to A's negligence, the work is defective and causes damage to the property. correct incorrect

B employs A to carry out work on B's property and, at the time of contracting, A does not know that the property is to be transferred to C when the work is completed. Due to A's negligence, the work is defective and causes damage to the property. correct incorrect