Master Contract Law: Special Types of Contracts for MA Students

Question 1

In a contract for the sale of a used car, which implied term from the Sale of Goods Act 1979 would NOT apply?

Accepted Answer

Implied term of fitness for a particular purpose

Answer

Implied term of title

Answer

Implied term of satisfactory quality

Answer

Implied term of quiet possession

Question 2

In the context of consumer contracts, what is the primary purpose of issuing a "notice to cancel"?

Accepted Answer

To communicate the consumer's decision to withdraw from the contract

Answer

To request a refund from the trader

Answer

To suspend the trader's obligation to deliver goods

Answer

To initiate legal proceedings against the trader

Question 3

Which of the following is NOT an exemption under the Unfair Contract Terms Act 1977?

Accepted Answer

Exclusion for consumer contracts

Answer

Incorporation by notice

Answer

Reasonableness test

Answer

International sales contracts

Question 4

In the context of employment contracts, what is the primary purpose of a "restrictive covenant"?

Accepted Answer

To prevent the employee from competing against the employer after the employment ends

Answer

To require the employee to work for a specific duration

Answer

To prohibit the employee from disclosing confidential information

Answer

To limit the employee's salary or benefits

Question 5

Which type of contract involves an agreement between a buyer and a seller for the sale of goods that do not yet exist?

Accepted Answer

Executory contract

Answer

Contract for the sale of specific goods

Answer

Executed contract

Answer

Void contract

Question 6

Which of the following is a unique characteristic of contracts for the sale of goods?

Accepted Answer

Sale of goods contracts involve a physical transfer of goods.

Answer

Only goods can be transferred in a sale of goods contract.

Answer

The law places a higher duty of care on providers of services than on sellers of goods.

Answer

Service contracts typically have a longer duration than sale of goods contracts.

Question 7

Which of the following factors is essential in determining whether a party has accepted an offer to contract?

Accepted Answer

Conduct

Answer

Silence

Answer

Lapse of time

Answer

Rejection

Question 8

Which of the following is a characteristic feature of consumer contracts under the Consumer Rights Act 2015?

Accepted Answer

Unfair contract terms are void

Answer

Must be in written form

Answer

No cooling-off period

Answer

Strict liability

Question 9

What is the key distinction between a condition and a warranty in a contract?

Accepted Answer

A warranty is a minor breach, while a condition is a fundamental breach

Answer

A condition is a minor breach, while a warranty is a fundamental breach

Answer

They are essentially the same

Answer

Conditions are only found in sale of goods contracts

Question 10

What is the legal concept known as the doctrine of frustration?

Accepted Answer

It allows a party to terminate a contract if it becomes impossible to perform due to unforeseen circumstances

Answer

It allows a party to terminate a contract if it becomes too expensive to perform

Answer

It is a defence to breach of contract

Answer

It is only applicable to employment contracts

Question 11

Improved: Which of the following is NOT a principle enshrined in the Sale of Goods Act 1979?

Accepted Answer

Goods must be sold by the owner or an authorized agent.

Answer

Goods must be of satisfactory quality.

Answer

Goods must be fit for their intended purpose.

Answer

Goods must align with their description.

Question 12

Improved: In an employment contract, which of the following is NOT an obligation of the employer?

Accepted Answer

Hiring a personal chef for the employee.

Answer

Providing a safe work environment.

Answer

Paying the employee the agreed-upon salary.

Answer

Offering opportunities for professional development.

Question 13

Improved: Which of the following is NOT recognized as an implied term in contract law?

Accepted Answer

Warranty of personal gratification.

Answer

Warranty of merchantability.

Answer

Warranty of fitness for a particular purpose.

Answer

Warranty of satisfactory quality.

Question 14

Improved: Which of the following is NOT a factor that can potentially render a contract invalid?

Accepted Answer

The financial circumstances of the parties involved.

Answer

Mistake.

Answer

Coercion.

Answer

Undue influence.

Question 15

What is the main difference between an express term and an implied term?

Accepted Answer

Express terms are stated in the contract, while implied terms are not

Answer

Implied terms are legally binding, while express terms are not

Answer

Express terms are more important than implied terms

Answer

There is no difference between express and implied terms

Question 16

Which of the following is NOT a valid reason for terminating an employment contract?

Accepted Answer

Satisfactory performance

Answer

Breach of contract

Answer

Redundancy

Answer

Mutual agreement

Question 17

Which of the following types of contracts involves an offer and acceptance through performance?

Accepted Answer

Unilateral contract

Answer

Bilateral contract

Answer

Void contract

Answer

Conditional contract

Question 18

Which type of contract is created when both parties make promises to perform acts in the future?

Accepted Answer

Bilateral contract

Answer

Unilateral contract

Answer

Void contract

Answer

Executed contract

Question 19

Which type of consumer transaction is governed by the Consumer Rights Act 2015 and involves a purchase made remotely, without the physical presence of the seller?

Accepted Answer

Distance contract

Answer

Sale of a freehold property

Answer

Employment contract

Answer

Hire-purchase agreement

Question 20

In a contract for the sale of land, which term guarantees that the seller has the legal authority to transfer ownership?

Accepted Answer

Covenant for title

Answer

Implied term of quiet enjoyment

Answer

Condition precedent

Answer

Warranty of authority

Question 21

Which fundamental principle of contract law allows parties to freely enter into agreements without undue government interference?

Accepted Answer

Freedom of contract

Answer

Good faith

Answer

Equity

Answer

Estoppel

Question 22

Which type of contract is commonly used to transfer the assets of a company without acquiring its liabilities?

Accepted Answer

Asset purchase agreement

Answer

Letter of intent

Answer

Memorandum of understanding

Answer

Sale of shares agreement

Question 23

Which element of a valid contract refers to an error that may make the contract voidable?

Accepted Answer

Mistake

Answer

Consideration

Answer

Offer

Answer

Acceptance