ICAEW Law Exam Questions And Answers
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Simple contract - answerOne that doesn't need to be in writing
Contracts that must be in writing - answerBills of exchange
Regulated Consumer Credit Arrangements
Transfers of land (speciality contracts)
Guarantees
Void - answer= No contract at a...
What is not an offer? - answer✔Invitation to treat
Statement of intention
Vague statements
Ways an offer can be terminated - answer✔Rejection and counter-offer
Revocation
Lapse of time
Failure of a pre-condition
Revocation - answer✔When the offeror withdraws their offer
(any time before acceptance by offeror or a reliable third party)
Exception to revocation - answer✔If offeree pays offeror to keep the offer open
Unilateral contract - offer to entire world (impossible to notify everyone)
Acceptance - answer✔Unequivocal and unconditional assent to all the terms of the offer
Postal rule - answer✔Exception to the rule that acceptance must always be communicated
States that acceptance is complete as soon as the letter is posted
Only applied where properly stamped and addressed and where it is reasonable to use post
Applies even if letter is never received
Doesn't apply if stated on offer that requires 'notice in writing'
Consideration - answer✔Act or forbearance on the part of one party to a contract as the price of the
promise made to him by the other party to the contract
Valid consideration - answer✔Executed or executory
Sufficient consideration - answer✔Capable of being given a value
Inadequate consideration - answer✔Unequal in value
Waiver of rights - answer✔If one of the parties forfeits their rights to something this could be good
consideration if it is capable of being assigned a value
The part payment problem - answer✔Waiver of an existing debt
Payment of a lesser sum in satisfactino of a greater sum cannot be any satisfaction for the whole sum
Subject to contract - answer✔Where 'subject to contract' is included in an agreement, there is a strong
presumption that there is no intention to create an immediately binding contract
Privity of contract - answer✔Only a person who is a party to a contract has enforceable rights or
obligations under it
Express terms - answer✔Specifically agreed
Must be clear
Implied terms - answer✔Not expressly included but are still part of the contract
Discharge of contract methods - answer✔Performance
Frustration
Breach of contract
Severable contract - answer✔If contract is divisible the contract can be discharged by performance of
part of the obligations
When does Quantum meruit occur? - answer✔One party is prevented from performing his duties under
a contract due to the actions of the other party
In these circumstances the offer of performance is sufficient to discharge contractual obligations
Quantum Meruit - answer✔An order for the defendant to pay damages for the proportion of the
contract price that the work is worth at this point
The Law Reform (Frustrated contracts) Act 1943 - answer✔Provides that:
- Amounts paid by one party to another under the contract are to be refunded
- Amounts still outstanding are no longer due
- If a person has to repay sums he may set off any expenses, provided they were incurred in carrying out
the contract prior to the frustrating event
- If either party has benefitted other than with a payment of money the court can order a payment of all
or a part of that value as it considers just
Lawful excuse for breach - answer✔One party has offered to perform his obligations but the other party
has refused
One party makes it impossible for the other to perform his obligations
Parties have agreed that certain obligations shall not be performed
Types of damages - answer✔Unliquidated
Liquidated
Penalty clause
Equitable remedies - answer✔Specific performance
Rescission
Injunction
Specific performance - answer✔An order to the defendant to perform his part of the contract
Rarely granted except in connection with the sale of land
Types of injunction - answer✔Mandatory
Prohibitory
Asset freezing
Injunction - answer✔Order for a person to do or not to do something
Common Law tests (exclusion clauses) - answer✔Exclusion clauses are only enforceable if:
- they have been properly incorporated into the contract
- the wording of the clause covers the loss suffered by the claimant
Tort - answer✔Breach of a legal duty
Damages under valid contract - answer✔Intended to put the claimant back in the position he would
have been in had the contract been properly performed
Damages in tort - answer✔Intended to put the claimant in the position he would have been in had the
tortious act never taken place
Limitation period in contract - answer✔Six years from the breach of contract
Limitation period in tort - answer✔Generally six years but three years for personal injury
Main elements of a tort - answer✔Must be an act or omission by the defendant
This must have directly caused damage or injury to the claimant
Courts must be able to establish a legal liability as a result of the damage
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