Chapter 3: MCQs

Certainty and the intention to create legal relations

Quiz Content

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. Thomas promises his brother that he will clean his car if he lends him his football boots.

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. Which of the following statements are true in relation to the House of Lords' decision in Walford v Miles (1992)? Please select all that apply.

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. In Scammell v Ouston (1941), the words 'hire purchase terms' were sufficiently certain.

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. An agreement that neither party has yet performed is know as an ……… agreement.

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. Match the extract to the statutory provision.

'The price in a contract of sale may be fixed by the contract or may be left to be fixed in a manner agreed by the contract, or may be determined by the course of dealings between the parties.'

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'What is a reasonable price is a question of fact dependent on the circumstances of each individual case.'

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'Where there is an agreement to sell goods on terms that are to be fixed by the valuation of a third party, and he cannot or does not make the valuation, the agreement is avoided; but if the goods or any part of them have been delivered to and appropriated by the buyer he must pay a reasonable price for them.'

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'Where the third party is prevented from making the valuation by the fault of the seller or buyer, the party not at fault may maintain an action for damages against the party at fault.'

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. The contract in May & Butcher v R (1934) was:

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. A comfort letter is? Please select all that apply.

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. The presumption that domestic parties do not intend to create legal relations between themselves is limited to agreements between husband and wife.

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. Where the price in a contract for the sale of goods is not established by the contract or by a course of dealing, s. 8 of the Sale of Goods Act 1979 states that the buyer must pay a ……… price.

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. The different judgments in May & Butcher v R (1934) and Foley v Classique Coaches Ltd (1934) can be explained on the basis that the agreement in May & Butcher was executed, but the agreement in Foley was executory.

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. A key reason for enforcing the agreement in Parker v Clarke was that the young couple relied upon the promise to their ………, by partly performing the agreement by moving out of their home and into the elderly couples' home.

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. Import and Export Ltd agrees to buy a container of mobile phones from Fones4Biz Ltd. Import and Export Ltd is not sure whether it will be able to find a buyer for the phones and Fones4Biz Ltd is not sure if it will be able to supply the phones, and so they insert a term into the written agreement that it is binding in honour only and is not intended to create legal relations between the parties.

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. The agreement Walford v Miles not to negotiate with any other party would have been sufficiently certain if it had been limited in time.

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. Lord Tomlin thought that the contract in Hillas v Arcos was sufficiently certain because:

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. The majority of the House of Lords in ……… thought that there was an intention to create a legal relationship when Esso offered World Cup coins to drivers who bought its petrol.

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. An executed agreement is an agreement that has been brought to a premature end.

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