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Sample Test Questions on Contract Law for student trails...

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Question 1 Sale of Goods Act 1962 (Act 137) implied various terms into contracts for the sale of goods but what type of goods are not included under the Act? a) Cars b) Crops which are to be severed from land before sale. c) Land. d) Clothing advertised in catalogues.

Question 2 Which one of the following statements is correct? a) The Sale of Goods Act 1962 (Act 137) does not apply if the exact price is not mentioned in the contract. b) The Sale of Goods Act 1962 (Act 137) only applies to contracts for the sale of goods where ownership is to be transferred immediately the contract is made. c) The Sale of Goods Act 1962 (Act 137) applies to contracts for the sale of goods where ownership is to be transferred immediately from the seller to the buyer and to contracts where the seller agrees to transfer ownership at a later date. d) A contract for the sale of goods must be written.

Question 3 Which one of the following terms is not implied into contracts for the sales of goods in a private sale? a) The seller has the right to sell. b) The goods are of satisfactory quality. c) The goods match the sample. d) The goods match their description.

Question 4 In a consumer contract goods must be of satisfactory quality except: a) When they are in a sale. b) When they are second- hand. c) When the defect is drawn to the attention of the buyer. d) When they are purchased via the internet.

Question 5 Deepa bought an electric bike from "Great Bikes Ltd" telling the sales assistant that she knew nothing about bikes but wanted a bike suitable for riding on rough terrain. She bought the bike recommended by the assistant, however, although the bike was fine around town, the wheels and frame bent the first time she used it on rough terrain. Her action against "Great Bikes Ltd" would be for breach of which section of the Sale of Goods Act 1962 (Act 137)? a) 12 b) 13 c) 14(3) d) 15

Question 6 Alice enters into a carpet shop and chooses a purple carpet from a sample which is labeled 100% wool. She buys the carpet but the carpet that is delivered is blue and 80% wool. There is a breach of which sections of the Sale of Goods Act 1962 (Act 137)? a) Sections 12, 13 and 15 b) Sections 14(2) and 15 c) Sections 12 and 15 d) Sections 13 and 15

Question 7 Which one of the following statements is incorrect? a) Unascertained goods are products that have not yet been manufactured or acquired by the seller, or are unidentified. b) Specific goods are those that are identified at the time the contract of sale is made. c) Ownership of goods always passes when physical possession passes to the buyer. d) Sale of Goods Act s26 provides that the property in specific or ascertained goods passes when the parties intend it to be transferred.

Question 8 A reservation of title clause is:

a) A clause in a contract of sale retaining title of goods until payment has been made. b) A clause relating to description of goods. c) A clause that is implied into consumer contracts. d) A clause in a contract of sale stating that the contract is a business contract.

Question 9 Under the Sale of Goods Act the seller has a duty to deliver the goods to the buyer. What is the legal meaning of 'delivery'? a) Where the seller physically transports the goods to the buyer. b) The voluntary transfer of possession from one person to another. c) The voluntary transfer of ownership from one person to another. d) The voluntary transfer of ownership and possession from one person to another.

Question 10 Under the UK’s Supply of Goods and Services Act 1982 the term implied into the contract that the supplier will carry out the service with reasonable care and skills is treated as a: a) Condition. b) Warranty. c) Innominate term. d) Representation.

Question 1 Which one of the following statements is incorrect?

a) Misrepresentations cover false statements and half-truths. b) A statement which is true when it is made but becomes false before the contract is completed may amount to a misrepresentation. c) To be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract. d) In English law there is no duty to disclose information before a contract unless the contract is one of the utmost good faith or a special relationship of trust exists between the parties. .

Question 2 Misrepresentation in a contract makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable.

Question 3 An operative mistake in a contact makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable.

Question 4 What is meant by a common mistake in the law of contract? a) A mistake that is often made. b) Where both parties make the same mistake. c) Where only one of the parties makes a mistake. d) Where the parties are at cross purposes.

Question 5

George buys a vase from Louis for GHS20. Louis believes the vase is worthless but George knows it is valuable. George later sells it for GHS10,000. What legal action can Louis take against George? a) Sue George for the return of the vase as the contract is void for unilateral mistake. b) Sue George for breach of contract. c) Louis has no legal remedy. d) Sue George for the return of the vase as the contract is void for common mistake.

Question 6 The possible remedies for negligent misrepresentation are: a) Rescission and damages. b) Damages only. c) Rescission only. d) Specific performance.

Question 7 What does rescission of a contract mean? a) The contract is set aside and the parties are put back in the same position as if the contract had never been entered into. b) The parties are put into the same position as if the contract had been completed. c) Monetary compensation. d) A false statement of fact.

Question 8 Which of the following statements is incorrect? a) Duress is where a party has entered into a contract after one party has threatened physical violence or serious economic coercion. b) The presence of duress makes a contract void. c) Undue influence is where a party has entered into a contract after excessive persuasion. d) The presence of undue influence makes a contract voidable.

Question 9 When will the courts presume that there has been undue influence in the signing of a contract? a) Where there is a fiduciary relationship with the party against whom the undue influence is alleged. b) In all contracts made between a married couple (or a co-habiting partner). c) The courts will not presume undue influence. The party alleging undue influence must prove it has occurred. d) Where the contract is oral.

Question 10 Sally contracts with her employer that she will have a salary of GHS35,000 per annum plus a cash payment of GHS20,000 at the end of the year which will not be declared thereby avoiding tax. Sally's employer has now refused to pay her the GHS20,000. Can Sally take legal action to enforce the payment of GHS20,000? a) Yes, Sally has completed the work as agreed. b) Yes, provide the contract is in writing. c) No, the contract is void for illegality. d) No, the contract is void for mistake.

Mensah owns a café, employing two waiters, Kwabena and Akosua. Kwabena becomes unwell. To avoid having to employ any extra staff Mensah promises Akosua a bonus if she will do all the work by herself until Kwabena returns. Akosua works extra hard while Kwabena is unwell but Mensah does not pay her any extra money. One of the waiters normally fetches fresh flowers every day from Adwoa, a local florist, for the tables in the café. Adwoa tells Mensah that she will bring the flowers to the cafe while Kwabena is unwell. When Kwabena returns to work Mensah says he will pay Adwoa some money for making these deliveries. When Adwoa asks for this payment Mensah refuses. Advise whether Akosua or Adwoa have given good consideration for Mensah’s promises....