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

Section 9 of the Consumer Rights Act 2015 implies a term that goods must be of satisfactory quality — meaning the standard a reasonable person would consider satisfactory given the description, price, and all other relevant circumstances.

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

Under the doctrine of frustration, when a supervening event occurs that was not foreseeable, makes performance impossible or radically different, and was not self-induced, the contract is automatically void from that point and parties are discharged from future obligations.

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

The doctrine of privity of contract (Dunlop Pneumatic Tyre Co v Selfridge [1915]) holds that only parties to a contract can acquire rights or obligations under it. Third parties cannot sue on a contract. However, the Contracts (Rights of Third Parties) Act 1999 provides an exception.

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

Under the Contracts (Rights of Third Parties) Act 1999, a third party can enforce a contractual term if: (a) the contract expressly provides they may do so, or (b) the term purports to confer a benefit on them, unless it appears the parties did not intend the term to be enforceable by the third party.

Question 5

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

Accepted Answer

Specific performance

Answer

Specific performance is an equitable remedy that orders the breaching party to perform their contractual obligations. It is typically granted for contracts involving unique goods or land, and is discretionary (not available as of right).

SQE1 Practice Test

SQE1 Practice Test

SQE1 Contract Law 2