CILEx L3 Contract Law 2

Question 1

In Balfour v Balfour [1919], why was the wife's claim for maintenance payments unsuccessful?

Accepted Answer

There was no intention to create legal relations between spouses

Answer

There was no consideration provided by the wife

Answer

The agreement was too uncertain to enforce

Answer

The husband had revoked the offer before acceptance

Question 2

What principle was established in Hadley v Baxendale (1854) regarding contractual damages?

Accepted Answer

Damages are limited to losses arising naturally from the breach or within the contemplation of both parties

Answer

Damages must be punitive to deter breach

Answer

The innocent party can always claim for all losses suffered

Answer

Damages are limited to the contract price

Question 3

What is the effect of an exclusion clause that is found to be unreasonable under the Unfair Contract Terms Act 1977?

Accepted Answer

It is void and unenforceable

Answer

It is valid but must be renegotiated

Answer

It is reduced to a reasonable level by the court

Answer

It is valid only between businesses

Question 4

Which of the following is an equitable remedy for breach of contract?

Accepted Answer

Specific performance

Answer

Damages

Answer

Debt action

Answer

Quantum meruit

Question 5

What did the court decide in Williams v Roffey Bros [1991] about practical benefit as consideration?

Accepted Answer

A practical benefit gained by the promisor can constitute good consideration for a promise of extra payment

Answer

Practical benefit can never constitute good consideration

Answer

Only financial benefit counts as consideration

Answer

The rule in Stilk v Myrick was completely overruled

Question 6

Under the doctrine of privity of contract, who can enforce the terms of a contract?

Accepted Answer

Only the parties to the contract, unless an exception applies

Answer

Any person who benefits from the contract

Answer

Any person named in the contract

Answer

Only the party who provided the greater consideration