Objectivity in contract law Davies Ch.2 Test Bank

Type: multiple choice question

Title: Chapter 02 - Question 01

01) Which of the following reasons are valid justifications for the general adoption of the objective approach in contract law?

a. The objective approach promotes certainty.

b. The objective approach allows for a wider range of evidence to be admissible in court.

c. Courts are used to applying the objective approach and would be unable to change their approach.

d. None of the options provided is correct.

Type: multiple choice question

Title: Chapter 02 - Question 02

02) When will ‘snapping up’ an offer not lead to an enforceable contract?

a. Accepting an offer that was obviously made by mistake

b. Accepting an offer made by a consumer

c. Accepting an offer that has been individually negotiated.

d. None of the options given is correct.

Type: multiple choice question

Title: Chapter 02 - Question 03

03) Why did the court in Raffles v Wichelhaus hold that there was no valid contract between the parties?

a. The ambiguity in the contract was the fault of neither party and each party had a different understanding of the agreement.

b. The contract failed to satisfy the requirement of formality.

c. The conduct of the parties would have led a reasonable person to believe that they did not intend to form a contract.

d. None of the options provided is correct.

Type: multiple choice question

Title: Chapter 02 - Question 04

04) Why was the defendant in Smith v Hughes not liable to pay the contract price for the new oats?

a. Old oats were discussed before the oral contract was concluded.

b. Old oats were not discussed but the seller knew that the buyer believed that the oats were in fact old.

c. The seller knew that the buyer was contracting for old oats.

d. All of the options provided are correct.

Type: true-false

Title: Chapter 02 - Question 05

05) A signed contract will only be enforceable if it is established that both parties have actually read and understood its terms.

a. True

b. False

Type: multiple choice question

Title: Chapter 02 - Question 06

06) How are the words and conduct of a contracting party generally assessed?

a. By reference to a reasonable person in that party’s own position

b. By reference to a reasonable person in the addressee’s position

‘communications, whether oral or written, are to be understood in the way that a reasonable person in the position of the recipient would have understood them.’

c. By reference to a reasonable person who is entirely detached from the proceedings

d. None of the options provided is correct.

‘communications, whether oral or written, are to be understood in the way that a reasonable person in the position of the recipient would have understood them.’