Knowledge of AQA contract law for alevel. but include 25% of the cards as cases

Question 1

What is a contract?

Answer 1

A legally binding agreement between two or more parties.

Question 2

True or False: A verbal agreement can be considered a contract.

Answer 2

True, as long as it meets the necessary elements of a contract.

Question 3

What are the essential elements of a contract?

Answer 3

Offer, acceptance, consideration, intention to create legal relations, and capacity.

Question 4

Fill in the blank: Consideration must be ______ and ______.

Answer 4

sufficient; adequate

Question 5

What does ‘capacity’ refer to in contract law?

Answer 5

The legal ability of parties to enter into a contract.

Question 6

What is the difference between a unilateral and bilateral contract?

Answer 6

A unilateral contract involves one party making a promise in exchange for an act; a bilateral contract involves mutual promises between two parties.

Question 7

What is ‘intention to create legal relations’?

Answer 7

The parties’ intention that their agreement should be legally binding.

Question 8

Case: What was the significance of Carlill v Carbolic Smoke Ball Co (1893)?

Answer 8

It established that a unilateral offer can be accepted by performing the conditions of the offer.

Question 9

What is ‘offer’ in contract law?

Answer 9

A proposal made by one party to another indicating a willingness to enter into a contract.

Question 10

True or False: An advertisement is always considered an offer.

Answer 10

False, advertisements are generally considered invitations to treat.

Question 11

What is an invitation to treat?

Answer 11

An indication that a person is willing to negotiate the terms of a contract.

Question 12

Case: What was the outcome of Fisher v Bell (1961)?

Answer 12

It ruled that displaying a product with a price tag is an invitation to treat, not an offer.

Question 13

What is ‘acceptance’ in contract law?

Answer 13

An unequivocal agreement to the terms of an offer.

Question 14

Fill in the blank: Acceptance must be communicated to the ______.

Answer 14

offeror

Question 15

What is the ‘postal rule’ in contract law?

Answer 15

Acceptance is deemed effective when posted, not when received.

Question 16

Case: What is the significance of Entores Ltd v Miles Far East Corporation (1955)?

Answer 16

It established that acceptance must be communicated effectively, especially in instantaneous communications.

Question 17

What constitutes ‘consideration’ in a contract?

Answer 17

Something of value exchanged between the parties.

Question 18

True or False: Past consideration is valid in contract law.

Answer 18

False, past consideration is not valid.

Question 19

What is ‘capacity’ in contract law?

Answer 19

The legal ability of a party to enter into a contract.

Question 20

Case: What was the ruling in Minors v. R (1967)?

Answer 20

It determined that minors have limited capacity to contract.

Question 21

What is ‘duress’ in contract law?

Answer 21

The use of threats or pressure to force someone into a contract.

Question 22

Fill in the blank: A contract made under ______ is voidable.

Answer 22

duress

Question 23

What is ‘misrepresentation’?

Answer 23

A false statement of fact that induces another party to enter into a contract.

Question 24

Case: What did the case of Oscar Chess Ltd v Williams (1957) establish?

Answer 24

It differentiated between statements of opinion and statements of fact in misrepresentation.

Question 25

What is 'undue influence'?

Answer 25

Exerting pressure on someone to enter into a contract against their will.

Question 26

True or False: A contract can be voided if one party was under undue influence.

Answer 26

True.

Question 27

What is the difference between void and voidable contracts?

Answer 27

Void contracts are not legally enforceable; voidable contracts can be enforced unless one party chooses to void it.

Question 28

Case: What was the outcome of the case of Re: B (1995)?

Answer 28

It ruled that a contract can be voidable due to undue influence.

Question 29

What does 'capacity to contract' exclude?

Answer 29

Minors, mentally incapacitated individuals, and intoxicated persons.

Question 30

What is meant by 'performance' in contract law?

Answer 30

The fulfillment of contractual obligations by the parties.

Question 31

Fill in the blank: A contract is discharged by ______ when parties fulfill their obligations.

Answer 31

performance

Question 32

What is 'frustration' in contract law?

Answer 32

An unforeseen event that makes the performance of a contract impossible.

Question 33

Case: What was the significance of the case of Taylor v Caldwell (1863)?

Answer 33

It established the doctrine of frustration due to impossibility of performance.

Question 34

What is a 'breach of contract'?

Answer 34

Failure to perform any term of a contract without a legitimate legal excuse.

Question 35

True or False: A minor breach allows the other party to terminate the contract.

Answer 35

False; only a material breach allows termination.

Question 36

What are the remedies for breach of contract?

Answer 36

Damages, specific performance, and rescission.

Question 37

Case: What was the outcome in Hadley v Baxendale (1854)?

Answer 37

It established the rule for consequential damages in breach of contract cases.

Question 38

What does 'specific performance' mean?

Answer 38

A court order requiring a party to fulfill the terms of a contract.

Question 39

What is 'rescission' in contract law?

Answer 39

The cancellation of a contract, returning parties to their pre-contractual position.

Question 40

What is 'liquidated damages'?

Answer 40

An amount specified in a contract to be paid in case of a breach.

Question 41

True or False: Liquidated damages must be a genuine pre-estimate of loss.

Answer 41

True.

Question 42

What is the role of the 'offeree'?

Answer 42

The party who receives the offer and can accept or reject it.

Question 43

What is meant by 'unconscionable contract'?

Answer 43

A contract that is so one-sided it is unfair to one party.

Question 44

Case: What did the case of Coutts v. Jessop (2002) establish?

Answer 44

It highlighted the concept of unconscionability in contract law.

Question 45

What is 'negotiation' in the context of contract law?

Answer 45

The process by which parties discuss and come to an agreement on contract terms.

Question 46

True or False: All negotiations lead to a binding contract.

Answer 46

False; negotiations may not result in a contract.

Question 47

What is 'equity' in contract law?

Answer 47

A branch of law that addresses fairness and justice, often used in contract disputes.

Question 48

What does 'consequential damages' refer to?

Answer 48

Damages that are not directly caused by a breach but are a consequence of it.

Question 49

Case: What was the ruling in the case of Victoria Laundry (Windsor) Ltd v Newman Industries Ltd (1949)?

Answer 49

It ruled that consequential damages are recoverable only if they were foreseeable.

Question 50

What is 'promissory estoppel'?

Answer 50

A legal principle that prevents a party from going back on a promise, even if a legal contract does not exist.

Question 51

Fill in the blank: Promissory estoppel requires ______ reliance on a promise.

Answer 51

reasonable

Question 52

What is 'agency' in contract law?

Answer 52

A relationship in which one party acts on behalf of another.

Question 53

True or False: An agent can bind the principal to a contract.

Answer 53

True, if the agent acts within their authority.

Question 54

What is 'discharge by agreement'?

Answer 54

Termination of a contract by mutual consent of the parties involved.

Question 55

What is the purpose of 'contractual terms'?

Answer 55

To outline the rights and obligations of the parties involved in a contract.

Question 56

Case: What did the case of B2C Ltd v. B2B Ltd (2016) illustrate?

Answer 56

It illustrated the importance of clear contractual terms in preventing disputes.

Question 57

What is 'negotiated settlement'?

Answer 57

An agreement reached between parties to resolve a dispute without litigation.

Question 58

Fill in the blank: A contract may be ______ if it is formed under false pretenses.

Answer 58

voidable

Question 59

What is 'default' in contract law?

Answer 59

Failure to fulfill a contractual obligation.

Question 60

True or False: Defaulting on a contract can lead to legal consequences.

Answer 60

True.

Question 61

What is 'material breach'?

Answer 61

A significant failure to perform that permits the other party to terminate the contract.

Question 62

What does 'remedy' mean in contract law?

Answer 62

A means of enforcing a right or redressing a wrong in a contract dispute.

Question 63

Case: What was the ruling in the case of Robinson v Harman (1848)?

Answer 63

It established the principle that a party is entitled to be restored to the position they would have been in had the contract been performed.

Question 64

What is 'unilateral mistake'?

Answer 64

A situation where one party is mistaken about a fundamental aspect of the contract.

Question 65

True or False: A unilateral mistake can render a contract void.

Answer 65

False; it typically does not unless the other party is aware of the mistake.

Question 66

What is 'bilateral mistake'?

Answer 66

A situation where both parties are mistaken about a fundamental aspect of the contract.

Question 67

What does 'specific performance' require?

Answer 67

The fulfillment of the specific terms of a contract as agreed.

Question 68

Case: What was the significance of the case of Beswick v Beswick (1968)?

Answer 68

It reinforced the concept of specific performance in contract law.

Question 69

What is 'quantum meruit'?

Answer 69

A legal principle allowing recovery for services rendered when no contract exists.

Question 70

What does 'waiver' mean in contract law?

Answer 70

The voluntary relinquishment of a known right.

Question 71

True or False: A waiver can be implied through conduct.

Answer 71

True.

Question 72

What is 'third-party rights' in contract law?

Answer 72

Rights granted to parties who are not directly involved in the contract.

Question 73

Case: What was the ruling in the case of Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd (1915)?

Answer 73

It established the principle that third parties cannot enforce a contract unless they are intended beneficiaries.