, PAST ASSIGNMENT QUESTIONS (MCQ)
Semester 1- 2020
Question 1
Y and Z reach an agreement that should Y sell his leather couch, he (Y) will offer to sell it to Z
first, before making an offer to sell the couch to any other person. Which statement is
CORRECT?
1. Y and Z concluded an option contract.
2. Y and Z concluded a pre-emption contract.
3. Y and Z concluded neither an option contract nor a pre-emption contract.
4. Y and Z concluded an option contract and a pre-emption contract.
5. Y and Z concluded a contract subject to a resolutive condition. (1)
Question 2
X sells his shop (a business) in a shopping mall to Y. During the negotiations X informs Y of the
overhead costs of running the shop but fails to mention that the rental for the shop space is
soon to escalate dramatically. In fact, the rent will be so high that the shop will scarcely be able
to turn a profit. What cause of action will Y be able to rely on in the circumstances in order to
claim damages?
1. Breach of contract.
2. Unjustified enrichment.
3. The reliance theory.
4. Material mistake.
5. Culpable misrepresentation. (1)
Question 3
Cedric has joined a religious sect. Recently this sect took advantage of Cedric’s good nature
and convinced him to donate his motor vehicle to the sect, which Cedric did. Cedric approaches
3
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