QUESTIONS AND CORRECT ANSWERS
Q1. Which of the following statements relating to the law of contract are correct?
1. Exemption clauses can be inserted up to seven days after the contract is made
2. Once made, an offer cannot be withdrawn
3. Acceptance of an offer must be communicated
4. All contracts must be in writing
5. Both parties to a contract must offer some consideration
A. 1 and 4 only
B. 3 and 5 only
C. 1, 2 and 5 only
D. 2, 3 and 4 only - CORRECT ANSWER B - 3 and 5 only
Q2. Mr and Mrs Jones are the only shareholders in Acme Transport Ltd which has a contract to
provide transport between Birmingham and London. Mr and Mrs Jones sell their shareholding to Mr
and Mrs Green. Insofar as the contract is concerned, Acme Transport Ltd
A. must continue to operate the contract
B. may only continue with the contract if the customer gives written agreement
C. cannot continue to operate the contract
D. may decide whether or not to operate the contract - CORRECT ANSWER A - must continue
to operate the contract
Q3. Which of the following would be an advantage to a road haulier if included in her conditions of
carriage?
1. A clause preventing trans-shipment
2. A clause allowing sub-contracting
3. A clause making the haulier liable for damage caused by the consignor