Chapter 1 Multiple-choice questions

. One of the key distinctions between the law of contract and the law of tort is that contractual obligations are voluntarily assumed whereas tortious obligations arise independently of the will of those involved.

True

False

. Which one of the following statements regarding the relationship between contract and tort is true?

All contractual obligations are voluntarily assumed by private parties, whilst all tortious obligations are imposed by law.

Both contractual and tortious liabilities turn on party fault.

The standard limitation period for claims in contract is six years, whilst that period for claims in tort is three years.

Damages in both contract and tort are limited to the extent that no damages may be recovered for losses that are too remote a consequence of the relevant breach.

. The existence of a contractual duty of care automatically gives rise to an identical duty of care in tort.

True

False

. In considering the limitation period within which a party must bring a claim, in both contract and tort the period runs from the time of the breach of the relevant obligation/duty.

True

False

. The classical theory of contract law is based on recognition of the binding nature of a voluntarily made promise. Which of the following assertions represent reasons given under that theory for the binding nature of the promise? [Please select all that apply.]

The promise is binding because the promisee has acted reasonably in reliance of it.

The promise is binding because the promisor has a moral obligation to fulfil it.

The promise is binding because its enforcement is necessary for the protection of consumers.

The promise is binding because its enforcement contributes to the general good of the society.

. According to the theory of contract that focuses on the need to protect a party's reasonable or legitimate expectations, a contracting party's expectation can be protected only if it arises from a promise given by the other party.

True

False

. Commercial and consumer contracts may be distinguished in that the approach to the former tends to reflect a market-individualist approach, which seeks to promote certainty and to protect the reasonable assumptions of the parties, whilst the approach to consumer contracts tends to reflect a consumer-welfarist approach, which is more interventionist and focuses on questions of fairness and reasonableness.

True

False

. Which one of the following areas of English contract law has not been affected by European Union directives?

Commercial agency.

E-commerce.

The validity of a contract.

Consumer protection.

. Which one of the following statements relating to the recognition of a good faith requirement in English contract law is true?

A general principle of good faith has been introduced into English law by way of European Union directives.

As a result of the adoption of the Principles of European Contract Law (PECL), English law has recognised a general principle of good faith to the extent that it applies to contracts between an English party and another European party.

English law has resisted the concept of good faith, at least in the area of contract negotiations.

English law does not recognise that the concept of good faith should have any role to play in the area of contract performance.

. In a commercial contract, English law recognizes a general implied duty (based on the presumed intention of the parties) that requires parties to act in good faith in performance of their contractual obligations.

True

False

Quiz Content