Eduqas A-Level Law the law of contract (Components 2 and 3) overview quiz quiz

An invitation to treat

A firm offer to sell that the customer accepts simply by presenting the goods at the till

An acceptance of an offer that the customer is taken to have already made by entering the shop

A binding contract formed the moment the goods are placed on display with a price attached to them

When the offeror reads the letter

When the letter is posted

When the letter is delivered

When the offeror replies

Carlill v Carbolic Smoke Ball Co

Pinnel's Case

Currie v Misa

Hadley v Baxendale

Commercial agreements made between two businesses in the ordinary course of trading with each other

Agreements between companies negotiated and signed by their directors on the firms' behalf

Employment contracts agreed between an employer and an employee at the start of the job

Social and domestic agreements

The right to repudiate (terminate) the contract and claim damages

Damages only, with the contract continuing in force exactly as if no breach had occurred

Specific performance only, compelling the party in breach to carry out the contract as agreed

No remedy at all, since breach of a major term simply discharges both parties from the contract

A broken promise about something the party intended to do at some point in the future

A false statement of fact that induces the other party to enter the contract

An opinion honestly held and expressed by one party but later shown to be mistaken

A term of the contract itself, breach of which gives rise to a claim for damages

Breach, where one party fails to perform an obligation it has freely undertaken under the contract

Rescission, which unwinds the contract and restores the parties to their pre-contractual positions

Frustration

Mistake, where the parties contract under a shared false belief about a fundamental existing fact

All losses flowing from the breach are recoverable, however unusual or unexpected they may be

Only direct financial losses are recoverable, and any loss of profit or expectation is excluded

Losses must have been foreseeable to a reasonable stranger who knew nothing of the contract

Losses are recoverable if they arise naturally or were in the parties' reasonable contemplation

The Law Reform (Frustrated Contracts) Act 1943

The Sale of Goods Act 1979, which implies terms about quality and title into contracts of sale

The Unfair Contract Terms Act 1977, which controls the use of exclusion and limitation clauses

The Misrepresentation Act 1967, which governs remedies where a false statement induces a contract

Nothing at all, since the party in breach is liable for the entire loss however it arises

Take reasonable steps to mitigate their loss

Sue immediately, because any delay in bringing the claim will reduce the damages recoverable

Accept any settlement offer the party in breach makes, however low, or lose the right to damages