SQE1 Contract Law 2

Question 1

Under the Consumer Rights Act 2015, what is the implied term regarding the quality of goods sold by a trader to a consumer?

Accepted Answer

Goods must be of satisfactory quality

Answer

Goods must be perfect in all respects

Answer

Goods must match only their written description

Answer

Quality is at the trader's discretion

Question 2

What is the legal position when a party claims frustration of a contract?

Accepted Answer

The contract is automatically void from the moment of the frustrating event, and parties are discharged from future obligations

Answer

All obligations are suspended until the frustrating event passes

Answer

The party claiming frustration must pay the other party all anticipated profits

Answer

Frustration can only be claimed with three months' notice

Question 3

What does the law mean by 'privity of contract'?

Accepted Answer

Only parties to a contract can sue or be sued on it

Answer

Contracts must be kept confidential between the parties

Answer

Contracts must be signed in private

Answer

All terms must be expressly stated in writing

Question 4

Under the Contracts (Rights of Third Parties) Act 1999, when can a third party enforce a contractual term?

Accepted Answer

When the contract expressly provides for it, or the term purports to confer a benefit on them and the parties intended the term to be enforceable by them

Answer

Always, if they benefit from the contract

Answer

Only when both original parties agree to allow enforcement

Answer

Only in contracts for the sale of goods

Question 5

Which remedy for breach of contract requires the breaching party to perform their contractual obligations?

Accepted Answer

Specific performance

Answer

Damages

Answer

Rescission

Answer

Account of profits

Question 6

A clause in a commercial contract excludes all liability for negligence. Under the Unfair Contract Terms Act 1977 (UCTA), such a clause between two businesses is:

Accepted Answer

Valid only if it satisfies the reasonableness test

Answer

Always void and unenforceable

Answer

Always valid between commercial parties

Answer

Valid only if agreed by a court in advance