Diagnostic test

Diagnostic test

. According to the Court of Appeal in Pharmaceutical Society of GB v Boots [1953] 1 QB 401, which one of the following statements most accurately describes the normal process of contract formation in a self-service shop?

. In which one of the following circumstances is the acceptance ineffective because it does not comply with the prescribed method of acceptance in the offer?

. A 'lockout' agreement, preventing a party from negotiating with any third party, even if no time limit is specified for those negotiations, is likely to be upheld by a court as enforceable due to the courts placing an implied duty on a party who had agreed to the lockout to negotiate in good faith with the party to that lockout for a reasonable period of time.

. The courts are able to imply a term that the price should be a 'reasonable price' whenever the price-fixing mechanism has not been implemented.

. A contacts B, a friend, by telephone and asks him out to lunch adding that she (A) will pay. B agrees to meet A, saying that he (B) will pay for the wine. B arrives at the agreed restaurant the next day but A telephones to say that she must cancel the arrangement because of an urgent business meeting. B, who is a self-employed financial consultant, has taken a day off work for the lunch and, because he has lost a day's earnings as a consequence of A's cancellation, he seeks some redress (even if this is simply payment for his meal). Which one of these statements most accurately summarises the legal position?

. A husband divorces his wife and then promises to 'maintain' her, provided she takes good care of their only child and keeps the child happy. Later, the husband changes his mind and refuses to provide any maintenance to the wife. The wife then seeks to enforce the promise. Which one of the following statements most accurately summarises the position between the two?

. To 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.

. Which one of the following statements relating to the test of enforceability in s. 1 of the Contracts (Rights of Third Parties) Act 1999 is true?

. Jimmy Jeanz is a famous brand of jeans. It has a contract to supply a retailer, House of Jeans, with stock of its jeans. In a sale of goods contract of this type, the jeans must be of satisfactory quality (SGA 1979, s. 14(2)). Which one of the following statements is a correct application of this provision?

. Where a statement made by one party before the conclusion of the contract is found to be untrue, the innocent party's remedies may vary according to whether the statement is characterized as a term or a representation. If the statement is characterized as a term, which one of the following assertions relating to the innocent party's remedies is true?

. The Unfair Contract Terms Act 1977 subjects every contract term falling within its scope to a reasonableness test.

. A purchases an electric oven for her bakery business from the B company. Before the contract is made, A is given a document that contains the following clause: 'A purchaser is entitled to return any goods within 12 days of purchase and receive a full refund. However, if the returned goods are not defective in any way then the customer must pay a £10 handling charge.' A does not read the conditions before buying the oven and now wants to return the oven immediately because she has decided to emigrate abroad. Which one of the following statements most accurately summarises the position?

. According to the compensation principle, the non-breaching party is normally entitled to recover as loss of profit any profit made from the breach by the contract-breaker.

. The purpose of awarding contractual damages is generally to put the non-breaching party into the position it would have been in had the contract been performed as agreed.

. A owns a tanker that has suffered a massive engine explosion. A finds out from an independent source that a ship owned by B is the closest vessel to the stricken tanker. B agrees to divert his vessel in order to render assistance to the crew of A's tanker, provided A will agree to a minimum hire charge of £50,000, 'irrespective of whether B's vessel is used or not'. A accepts B's offer but finds out within minutes that his tanker has already sunk with the loss of all hands. Which one of the following statements most accurately represents the legal position of A?

. A, a dealer in antiques, places a painting in her shop window priced at £10,000. A thinks that the painting may be by Arthur Frier, a local artist whose paintings are now being sought by professional collectors, but as she is not certain of the painter's identity, she decides not to place any label on the painting. B enters the shop and says: 'That looks like a Frier to me, I'll take it.' A does not reply. B pays the price of £10,000 in cash. B now discovers that the painting is not by Frier and seeks a full refund. Which one of the following statements most accurately summarises the legal position?

. A is interested in buying B's house. During the pre-contractual negotiations, B refuses to answer any of A's questions. Subsequently, B is informed that the house is infested with death-watch beetle but fails to tell A of that fact. A thereupon buys the house but is told that it will need to be demolished within six months. Which one of the following statements most accurately summarises the position between the parties?

. Which one of the following misstatements is not likely to be a misstatement of fact?

. A presumption of undue influence arises once it is shown that the relationship between two parties falls within certain recognised relationships or, on the facts, constitutes a relationship of trust and confidence.

. Which one of the following statements in relation to 'actual undue influence' is true?

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