Multiple Choice Questions
Question 1
The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co. was which
of the following?
a) An invitation to treat.
b) An offer.
c) A statement of intention.
d) Of no legal effect whatsoever.
Question 2
A contract that is binding on one party but gives the other party the option to set it aside is
known as which of the following?
a) Void contract.
b) An unenforceable contract.
c) Voidable contract.
d) Unilateral contract.
Question 3
Dai texts Pip offering to sell his car to her for £2,000. Pip replies offering to buy the car
for £1,500. Dai texts back 'no way'. Pip replies by text stating she will accept the car for
£2,000. Which of the following statements is correct?
a) An offer has been made by Dai and acceptance by Pip.
b) An offer has been made by Pip and acceptance by Dai.
c) Dai first statement is an invitation to treat.
d) Pip's second statement is an offer to buy the car for £2,000.
Question 4
In Pharmaceutical Society of G.B. v Boots Cash Chemist Ltd. It was decided that:
a) Past consideration is no consideration.
b) Goods on display in a self-service store are an invitation to treat.
c) The postal rules are effective for UK letters.
d) Silence cannot be acceptance.
Question 5
Which of the following does not amount to acceptance of an offer?
a) When the acceptance is put in the post by the offeree.
b) When the acceptance is received by the offeror
c) When a third party informs the offeror that the offeree is accepting the offer.
d) When the acceptance is received by the offeror's agent.
Question 6
Jake e-mails Ali offering to sell his computer to her for £1,000. Ali replies asking if he will
accept a cheque or does he want cash? Ali's statement will be treated as which of the
following.
a) A counter offer terminating the offer made by Jake.
b) A refusal of the contract.
c) Acceptance of Jake's offer.
d) A request for information.
Question 7
A pre contractual statement that induces the making of a contract is?
a) A condition
b) Trader's hype
c) A warranty
d) A representation
Question 8
Where a term of a contract is worded broadly to cover a number of potential breaches and it is not
possible to decide whether breach of the term would have important or trivial consequences that
term is described as:
a) A condition
b) A representation.
c) A warranty.
d) An innominate term.
Question 9
Where an agreement is made in a social or domestic context what is the general rule relating to
intention to create legal relations?
a) The courts presume the parties intended to create legal relations.
b) Social or domestic agreements are never legal binding because the parties
cannot create legal relations.
c) All social or domestic agreements are legally binding.
d) The courts presume the parties did not intend to create legal relations.
Question 10
In which type of agreement is the intention to create legal relations presumed to exist?
a) Agreements between friends or family.
b) Commercial or business agreements.
c) All written agreements.
d) The intention to create legal relations is never presumed in an agreement.