1-20
Which two of
the following C. An agreement for the transfer of land
types of Contracts involving the sale or transfer of an interest in land must be in
contract writing or supported by written evidence to be legally enforceable.
must be in
writing or E. A consumer credit agreement
evidenced Consumer credit agreements are subject to statutory formalities and must
in writing? be in writing to ensure consumer protection.
Why the other options are incorrect
● A. Partnership agreement: Can be oral or implied by conduct.
● B. Contract for the sale of goods: No general requirement to be in
writing.
● D. Employment contract: Can be oral; only a written statement of
terms is required.
Which of the
following
terms
describes a B. Voidable
contract
where one A voidable contract is valid unless and until one party chooses to set it
party may [Link] property is transferred before the contract is avoided, a third party
set it aside, acting in good faith usually obtains good title, and the property is
but property [Link] commonly arises in cases such as undue influence or
transferred misrepresentation.
before
avoidance is A. Void A void contract has no legal effect from the outset; no valid title
usually can pass.
irrecoverabl
e from a C. UnenforceableThe contract exists but cannot be enforced due to a
third party? procedural defect; it is not set aside
D. Valid A valid contract cannot be avoided by either party.
Grace
intends to C-It can be oral provided it is evidenced in writing.
promise
Carlos that For the guarantee to be enforceable, there must be written evidence
she will pay of it, and that evidence must be signed or otherwise acknowledged by
the debts Grace
owed to
Carlos by
Duncan, in
the event A – It must be by deed (Wrong):
that Duncan A guarantee does not need to be executed as a deed to be enforceable. A
fails to pay deed is only required in special situations, not for ordinary guarantees.
them himself
B – It must be in writing (Wrong):
The guarantee itself does not have to be made in writing. The law only
requires written evidence of the guarantee, not that the agreement itself is
written.
D – It can be oral only (Wrong):
A purely oral guarantee with no written evidence is unenforceable. There
must be some written note or memorandum signed or acknowledged by
Grace.
Denzil puts
a notice in The correct answer is D In contract law, acceptance is only effective if the
the local offeree knows of the offer and acts in reliance on it. Florence returned the
post office dog solely because of the name tag, not in response to the reward notice,
saying so there was no valid acceptance and no contract. She is therefore not
"Reward. entitled to the reward.
Lost cavalier
King Charles Option A is incorrect because a reward notice is a unilateral offer that may
spaniel be made to the world at large.
named Bee.
£150 reward Option B is incorrect because acceptance by conduct still requires
for her safe knowledge of the offer.
return".
Florence Option C is incorrect because the right to the reward never arose,
finds Bee regardless of whether it was claimed at the time.
and,
Clara sells In contract law, advertisements and promotional leaflets are generally
high-quality regarded as invitations to treat rather than offers. Clara’s leaflet merely
French invites customers to make an offer to purchase, which Keiko does by
cheeses placing a large order. Therefore, the leaflet is not a valid offer and the
from her correct answer is B.
shop. She The issue then is whether Clara is in breach of contract by stating that the
delivers a goods are out of stock. As no contract was formed, Clara cannot be in
leaflet ……r breach. Keiko’s order amounts to an offer made in response to Clara’s
invitation to treat, and Clara is free to reject that offer by saying she has no
stock available. Accordingly, the correct answer is D.
A local In contract law, advertisements are generally regarded as invitations to
newspaper treat rather than offers, as they merely invite customers to make an offer to
advertises purchase and do not show an intention to be legally bound to all who
“50 scooters respond. The newspaper advert falls within this general rule, so the correct
remaining. 3 answer is C
feet high.
Only £20
each”.
All of the Rejection, a counter offer and lapse of time all bring an offer to an end, as
following, they indicate either refusal of the offer or that it is no longer open. By
except one, contrast, when a pre-condition attached to an offer is satisfied, the offer
have the does not terminate but instead becomes effective and unconditional.
effect of Therefore, the correct answer is C.
terminating
an offer.
Martine Martine’s offer is expressly conditional upon her obtaining the job. Where
offers to sell an offer depends on a condition precedent, failure of that condition means
her sailing the offer can no longer be accepted and is automatically terminated. Since
dinghy to Martine did not get the job, the condition failed and the offer came to an
Diego for end, so the correct answer is A.
£1,500,.... Option B is incorrect because there is no contract in existence to be
voidable; the condition failed before any contract could be formed.
Option C is incorrect because the offer cannot become unconditional when
the condition attached to it is not satisfied.
Option D is incorrect because unenforceability presupposes a contract,
whereas no contract arose in this case due to the termination of the offer
On Monday, Hilda’s reply on Tuesday alters a key term of Ivan’s offer by requesting a
Ivan offers delay in delivery, which amounts to a counter offer rather than an
to sell his acceptance. Under contract law, a counter offer terminates the original
piano….. offer, meaning it is no longer capable of acceptance. As a result, Ivan’s
original offer was destroyed on Tuesday and Hilda could not validly accept
it on Friday, so there is no binding contract and the correct answer is B.
Option A is incorrect because acceptance must mirror the terms of the
offer, which Hilda’s reply did not.
Option C is incorrect because the offer had already been terminated by the
counter offer before Ivan sold the piano to Ivy.
Option D is incorrect because Hilda’s reply went beyond a mere request for
information, as it proposed different delivery term
Idris emails Nathan’s reply proposing a lower price changes a key term of Idris’s offer
Nathan and and therefore constitutes a counter offer. A counter offer does not
offers to sell terminate itself unless it is revoked, and revocation must be communicated
his bike to to the other party. Although Nathan bought another bike, he never informed
him for Idris that he was withdrawing his counter offer. As a result, Idris was still
£250. able to accept the counter offer two days later, creating a binding contract.
Nathan texts The correct answer is B.
him back to Option A is incorrect because Nathan did not reject the offer outright but
say that he'd proposed new terms.
love it, but Option C is incorrect because suggesting a different price goes beyond a
he will only mere request for information.
pay £230. Option D is incorrect because a counter offer is not revoked by conduct
alone; revocation must be communicated.
Are the An offer stating that it will remain open for three months may still be
following revoked at any time before acceptance, unless the offeror has entered into
statements a separate binding contract (such as an option contract) to keep it open.
true or Mere intention or wording is not enough to prevent revocation. Therefore,
false? If an the correct answer is B.
offer states A letter of revocation is only effective when it is actually communicated to
that it will the offeree. The postal rule applies to acceptance but does not apply to
remain open revocation. As a result, posting a letter of revocation does not make it
for three effective. Therefore, the correct answer is D.
months….
Mia writes to There is no contract because silence cannot amount to acceptance. An
Theo offeree must perform some positive act to indicate acceptance, and Mia
offering to cannot unilaterally impose acceptance by stating that lack of response will
buy Theo's be treated as consent. As Theo did nothing to show agreement, no
car for contract was formed and the correct answer is D. Option A is incorrect
£3,000. In because the need for acceptance cannot be waived by the offeror alone.
her letter, Option B is incorrect because Theo did not actively comply with the terms.
she writes "lf Option C is incorrect because acceptance cannot be inferred from silence
…. or inaction
On 28 May, The letter of revocation does not take effect on 2 June because revocation
Abigail is only effective when it is communicated to the offeree. The postal rule
writes to Gill does not apply to revocation, so merely posting the letter is insufficient. As
and offers to Gill only received the revocation on 3 June, it did not take effect on 2 June.
sell her all Therefore, the correct answer is B
her old Gill’s acceptance takes effect when it is posted, provided that use of the
accountancy post was within the contemplation of the parties. The postal rule applies to
workbooks acceptance, meaning the contract is formed at the moment the acceptance
for £50. Gill letter is posted, which was 1 June. As a result, acceptance did not take
posts a letter effect on 3 June but earlier, and a binding contract already existed.
together Therefore, the correct answer is D.
with…
On Monday, Yes, there is a valid contract because Petra’s revocation is only effective
Petra writes when it is communicated to Quentin. The postal rule does not apply to
to Quentin revocation, so posting the letter on Wednesday did not terminate the offer.
offering to As Quentin accepted the offer later that day before receiving the revocation
sell her car letter, a binding contract was formed. Therefore, the correct answer is B.
to Quentin Option A is incorrect because revocation is not effective upon posting.
for £900. Option C is incorrect because acceptance does not have to be in writing
Petra's letter unless the offer requires it.
is received Option D is incorrect because acceptance need not be more expeditious
the next than the offer to be valid.
da…..
Are the An acceptance sent by email does not automatically take effect when the
following sender presses the “send” key. The law has not laid down a clear rule for
statements when email acceptance becomes effective, and it is generally treated as an
true or instantaneous method of communication. Therefore, acceptance is not
false? An effective simply upon sending, and the correct answer is B.
acceptance
of a Whether postal acceptance is within the contemplation of the parties is a
contractual question of fact to be determined from all the circumstances of the case.
offer sent by This depends on factors such as the nature of the transaction and the
email takes usual means of communication between the parties. Therefore, the
effect … statement is true and the correct answer is C
Are the Where an offer states a method of acceptance, the offeree may normally
following use an alternative method provided it is at least as quick and equally
statements effective, unless the offeror clearly insists on that method only. Therefore,
true or the statement is true and the correct answer is A.
false? Where no method of acceptance is specified, the offeree is not required to
Where the use the same method as the offer and may use any reasonable means of
offeror communication in the circumstances. Therefore, the statement is false and
states the the correct answer is D.
method of
how ace
offer
On 1 May, Where an offer requires acceptance by “notice in writing”, this indicates
Holly offered that acceptance must be communicated and received by the offeror. In
to sell her such cases, the postal rule does not apply, so acceptance is not effective
car to Jeff merely on posting. As Jeff’s letter never arrived, the acceptance was
for £5,000, ineffective and the correct answer is B.
stating that
the offer had As there was no effective acceptance, no contract was formed between
to be a Holly and Jeff. Therefore, the correct answer is D.
Belle Carol’s acceptance is effective on 5 January when she posts her letter of
writes to acceptance. The postal rule applies to acceptance, meaning a contract is
Carol on 1 formed at the moment the acceptance is posted, provided post is an
January appropriate method of communication. Belle’s attempted revocation on 4
offering to January was ineffective because revocation only takes effect when
sell her gold communicated to the offeree, and Carol did not receive it until 6 January,
necklace for after she had already accepted. Therefore, a binding contract was formed
£100. Carol on 5 January and the correct answer is A.
receives the Option B is incorrect because posting a revocation does not terminate an
letter on 3 offer until it is received.
January and Option C is incorrect because acceptance does not take effect upon
on 5 receipt when the postal rule applies.
January Option D is incorrect because a binding agreement did exist once Carol
posts a posted her acceptance
With regard Where a contract is in writing, the courts may allow the parties to rely on
to the terms additional terms not contained in the document if it can be shown that the
of a written document was not intended to represent the entire agreement. In
contract, such cases, oral or other evidence may be admitted. Otherwise, the
answer the general rule applies that extrinsic evidence cannot be used to add to, vary
following: or contradict written terms. Therefore, the correct answer is A.
Where a A term implied by custom and practice can be overridden by an express
contract is in written term, as express terms take priority over implied terms. Where
writing, will there is a conflict, the express term will prevail. Therefore, the correct
the courts answer is C
allow the
parties to
rely on any
terms that
are …..
Mr and Mrs Yes, the necessary intention to create legal relations exists because the
Lucas own usual presumption against legal intent in family arrangements is rebutted in
two flats in this case. The parties entered into a formal written tenancy agreement and
Bristol rent is payable, both of which indicate an intention to be legally bound
which they rather than a purely domestic or informal arrangement. Therefore, the
let to correct answer is C.
students. Option A is incorrect because the presumption against legal relations in
When their family contexts can be rebutted by evidence to the contrary.
eldest son, Option B is incorrect because paying a reduced rent does not negate legal
Gabriel, intention where other factors clearly indicate it.
Option D is incorrect because the presumption does apply to family
arrangements involving property, unless rebutted by evidence such as a
written contract
21-39
21 -Which of the following statements best describes consideration?
C. Consideration must be sufficient but need not be adequate.
Explanation:
This answer is correct because, in contract law, consideration must have some identifiable legal value
to be valid (sufficient). However, the courts do not require it to be equal in value to what is given in
return (adequate). The law assumes parties can protect their own interests, so a bad or unequal bargain
does not make consideration invalid.
22. -Zoe was employed to play her musical instrument for one lunchtime session per month at a
famous restaurant in London. Her contract contained a provision that she would stay behind and meet
with members of the audience after she finishes playing, as part of the venue's aim of making music
more accessible. After about 18 months, Zoe's sessions had become very popular, but she was always
keen to get away quickly after each performance.
C. No, because she was obliged to perform that duty anyway.
Explanation:
Zoe was already contractually required to stay behind and meet the audience after her performances.
Doing something she was already legally bound to do cannot amount to valid consideration for a new
promise. Therefore, the manager’s promise to pay an extra £50 is not enforceable in law.
23. -Zak owes Eve £100. Finding that he has insufficient cash, Zak offers Eve his bicycle worth £90
instead. Eve accepts.
A. Yes, Eve was not already entitled to the bicycle so it is sufficient consideration for waiver of the
debt.
Explanation:
Consideration must be sufficient but not adequate. The bicycle has an identifiable legal value and is
something Eve was not previously entitled to, so it can amount to valid consideration. The fact that
the bicycle is worth less than the £100 debt is irrelevant, as the courts do not assess the adequacy of
consideration.
24. -In which of the following scenarios is there insufficient consideration for a waiver of rights by
Eva where Isabella owes her £1,000 to be paid on 13 May?
B. Eva agrees to accept £980 on 13 May in cash.
Explanation:
This option is correct because payment of a lesser sum on the due date provides no new
consideration. Eva is already entitled to £1,000 on 13 May, so accepting £980 on the same date gives
her nothing extra in law, and the waiver of £20 is unsupported by consideration.
Why the other options are wrong:
A is wrong because accepting a car is something different from money and gives Eva a new benefit,
so it is valid consideration.
C is wrong because payment by a third party can amount to valid consideration for full satisfaction of
the debt.
D is wrong because payment of a lesser sum earlier than the due date is sufficient consideration, as
Eva gains the benefit of early payment.
25. -With regard to terms being implied into contracts, are the following true or false?
-The courts will imply a term into a contract if required to do so by statute.--> true
Where a statute governs a particular type of contract, the courts are required to imply the relevant
statutory terms. These terms are included automatically to protect parties (often the weaker party),
even if the contract is silent on the issue or contains express terms to the contrary.
- Terms may be implied on the basis of a custom or practice of a particular trade—> true
A term may be implied where there is a well-known, certain and consistently applied custom within a
particular trade or industry. The parties are presumed to have contracted with that custom in mind,
provided the implied term is reasonable and does not contradict any express term.
26. Prunella agrees to pay Paul £500 if Paul will landscape Phillip's garden. There is no agency
relationship and the Contract (Rights of Third Parties) Act 1999 does not apply
D. Prunella and Paul only
Explanation:
Only parties to a contract can enforce its terms under the doctrine of privity of contract. Prunella and
Paul are the contracting parties and have provided consideration. Phillip is not a party to the contract
and has given no consideration, and since the Contract (Rights of Third Parties) Act 1999 does not
apply, he has no right to enforce the contract.
27. The parties to a social or domestic agreement are presumed to have intended the agreement to be
legally enforceable.---> False
In contract law, there is a rebuttable presumption that parties to a social or domestic agreement do not
intend to create legal relations. Such agreements are usually based on personal relationships, trust, and
goodwill rather than legal obligation. However, this presumption can be rebutted if there is clear
evidence that the parties intended the agreement to be legally binding.
Explanation:
-The parties to a commercial agreement are presumed to have intended the arrangement to be legally
enforceable.---> True
Explanation: In contrast, there is a rebuttable presumption that parties to a commercial agreement do
intend to create legal relations. This is because commercial agreements normally involve business
interests and financial consequences. The presumption may be rebutted if the parties expressly show
that they did not intend the agreement to be legally binding.
28. On Monday, Annie advertised her car for sale for £5,000 in a local newspaper. Brian saw the
advertisement and telephoned Annie offering her £4,500 for the car. Annie eventually offered to sell
the car to Brian for £4,800. Brian replied that he would need to test-drive the car before he could
agree to such a price. Brian then agreed a time to meet at Annie's house the following weekend for the
test drive. On Friday, Annie sold her car to her neighbour Carol for £4,500
Correct answer:
A. True
Explanation:
As a general rule in contract law, a newspaper advertisement is an invitation to treat, not an offer. It
merely invites others to make offers to the advertiser. Since it is not an offer, it cannot be accepted to
create a legally binding contract.
29. Matt runs a small hotel. One of his friends, Louise, decorated two of the bedrooms for him, as a
surprise, when he was away on holiday. On his return, Matt was delighted and agreed to give her a
laptop in consideration for all her work. As a separate matter, he also agreed to pay Louise's brother,
Adam, the sum of £300 to fit new lights and sockets in the bedrooms. Adam performs the work. When
Louise and Adam come to collect the laptop and the money Matt refuses to give them either
D. The contract with Louise is invalid; the contract with Adam is valid.
Explanation:
Louise decorated the rooms before Matt promised to give her a laptop, so her work amounts to past
consideration, which is not valid in law. As a result, the agreement with Louise is not legally binding.
In contrast, Matt promised to pay Adam £300 in return for fitting the lights and sockets, and Adam
then performed the work. This is valid consideration, so the contract between Matt and Adam is
legally enforceable.
30. On 1 February, Sebastien posts a letter to Beth offering to sell his car. On 2 February, Beth
receives Sebastien's letter. On 3 February, Sebastien changes his mind and posts a letter to Beth telling
her that the car is no longer for sale. On the same day, Beth posts a letter to Sebastien accepting the
offer contained in his letter of 1 February. On 4 February, Beth receives Sebastien's letter informing
her that the car is no longer for sale.
A. Yes, acceptance took place on 3 February and Sebastien's revocation took place on 4 February.
Explanation:
Under the postal rule, acceptance is effective at the moment it is posted, not when it is received. Beth
posted her acceptance on 3 February, so a contract was formed on that date. Revocation of an offer,
however, is only effective when it is communicated to the offeree. Sebastien’s revocation was not
received by Beth until 4 February, which was after acceptance had already taken place. Therefore, a
valid contract exists.
.
31. A contractual offer may be terminated by rejection.
Correct answer:
A. Yes
Explanation:
If the offeree rejects an offer, the offer is brought to an end immediately. Once rejected, the offer
cannot later be accepted, even if the offeree changes their mind, unless the offeror chooses to make
the offer again. Rejection clearly shows that the offeree does not agree to the proposed terms.
A contractual offer may be terminated by lapse of time.
Correct answer:
C. Yes
Explanation:
An offer does not remain open indefinitely. If no time limit is stated, the offer will lapse after a
reasonable period of time, depending on the nature of the contract and the circumstances. After this
period has passed, the offer can no longer be accepted unless it is renewed or supported by a separate
option contract.
32.- To be valid, a contract must contain written evidence of the principal terms of the contract.
Correct answer:
B. No
Explanation:
Not all contracts are required to be in writing. Many contracts, such as contracts for the sale of goods,
can be valid even if they are made orally or implied by conduct, as long as the essential elements of a
contract are present.
- To be valid, a contract must contain an agreement.
Correct answer:
C. Yes
Explanation:
A valid contract must contain an agreement, which is formed through offer and acceptance. Without
agreement, there is no consensus between the parties and therefore no binding contract.
33. -To be effective, a revocation of an offer must be made in writing.
Correct answer:
B. False
Explanation:
A revocation does not need to be in writing to be effective. It may be communicated orally, in
writing, or implied by conduct, as long as it is clearly communicated to the offeree before acceptance.
- To be effective, a revocation can be made by an authorised agent of the offeror.
Correct answer:
C. True
Explanation:
A revocation is effective if it is communicated to the offeree before acceptance, and this
communication may be made either by the offeror themselves or by an authorised agent acting on
their behalf.
[Link] is visiting Karl's office. Whilst he is there, he sees a photocopier that Karl no longer
needs. Raheem offers Karl £500 for the photocopier and Karl accepts. Raheem pays Karl, loads the
photocopier into his van and drives away
Correct answer:
B. Executed
Explanation:
The consideration is executed because both parties perform their obligations at the time the contract
is made. Raheem pays the £500 and Karl transfers the photocopier immediately. This is not executory
consideration, which involves promises to perform in the future, nor past consideration, which occurs
before a contract is formed. There is also no recognised concept of “executive” consideration in
contract law.
35. Which of the following statements correctly describes privity of contract?
A. Individuals and businesses only have rights and obligations under a contract if they are a party to it.
Explanation:
This statement accurately describes the doctrine of privity of contract, which means that only the
parties who have entered into a contract can enforce its terms or be bound by its obligations. Third
parties, even if they benefit from the contract, generally have no rights or duties under it unless a
statutory exception applies.
Why the other options are incorrect:
B is incorrect because it describes the essential elements of a valid contract, not privity of contract.
C is incorrect because it relates to the rules of consideration, not who can enforce a contract.
D is incorrect because it concerns the freedom of contract, not the principle that limits enforcement to
the contracting parties.
36. All of the following contracts except one must be in the form of a deed. Which one is the
exception?
B. Contract for consumer credit
Explanation:
A contract for consumer credit does not need to be executed as a deed; it is only required to be in
writing to be legally valid. In contrast, the other options generally require execution by deed: transfers
of land or property, leases exceeding three years, and contracts for regular charitable donations must
be made by deed to be enforceable.
37. Matilda goes shopping in her local village store. Roses are on display priced at £2 each. Matilda
has £6 in her purse and takes three roses to the counter to pay.
- Does the display of clearly priced roses constitute an offer which Matilda accepts when she picks up
the roses?
Correct answer: B. No
Explanation:
The display of goods with a price in a shop is generally an invitation to treat, not an offer. It invites
customers to make an offer to buy, but does not create a binding obligation on the shopkeeper.
-Can the shopkeeper refuse to sell the roses to Matilda?
Correct answer: C. Yes
Explanation:
When Matilda takes the roses to the counter and offers to pay £6, she is making the offer. The
shopkeeper is free to accept or reject that offer, so they can lawfully refuse to sell the roses to her.
38. -A statute cannot override terms of a contract that have been expressly agreed between the parties.
Correct answer: B. False
Explanation:
Contracts are subject to statutory controls. Legislation can override or imply terms into a contract to
protect parties, particularly weaker parties, even if the contract expressly states otherwise. Therefore,
express terms do not always prevail over statute.
-All persons over 18 have capacity to enter into any contract.
Correct answer: D. False
Explanation:
Although people over 18 are generally presumed to have capacity, an adult who is not of sound mind
(for example, due to mental incapacity) does not have full legal capacity to enter into a binding
contract.
39. A commercial contract for the sale of land, which is based on an agreement and is supported by
consideration but which is not made in the correct form, is:
Correct answer: C. Unenforceable
Explanation:
Although the contract contains the essential elements of a valid contract—agreement and
consideration—a contract for the sale of land must comply with statutory formalities, including being
in writing. If these formal requirements are not met, the contract is not void or illegal, but it is
unenforceable, meaning it cannot be enforced by the courts.