ACCA June 2003 Q2

Explain in relation to the law of contract: (a) (b) the rules relating to acceptance of an offer; the rules relating to the revocation of an offer. (5 marks) (5 marks) (10 marks)

ACCA December 2005 Q3

In relation to the intention to create contractual relations explain: (a) (b) The meaning of the terms presumption and rebuttal. How presumption and rebuttal operate in the context of: (i) (ii) domestic and social agreements; business agreements. (4 marks) (4 marks) (10 marks) (2 marks)

ACCA December 2002 Q2

(a) (b) Define consideration as it is understood in English contract law. (3 marks) Explain and distinguish between the following terms: (i) (ii) executory consideration; executed consideration; (2 marks) (2 marks) (3 marks) (10 marks)

(iii) past consideration.

ALEX, CHRIS & DICK ACCA December 2002

In January 2008, Alex, a business consultant, won a lucrative contract with Ball Ltd to provide them with a highly specialised computer system. The terms of the contract required the system to be fully operational by 30 May subject to a penalty of 1,000 for every days delay. Alex entered into two subcontracts. One was with Chris to provide the software for the new system. The other was with Dick to provide the necessary computer hardware. Both of these tasks were to be carried out by 23 May and both were to receive 5,000 for their work. At the end of March, Chris told Alex that he would not complete the software in time unless Alex agreed to increase his payment by a further 1,000. Alex agreed to pay the increased sum in order to ensure that the job was done on time. However, he thought it was only fair that he should increase the money promised to Dick, so he promised him a bonus of 1,000 if he did the job on time. In the event, both Chris and Dick completed their tasks by 16 May and the system was successfully installed before Alexs contractual deadline with Ball Ltd. However, Alex has now refused to make any additional payments beyond the original contractual price to Chris and Dick. Required: Advise Chris and Dick whether they have any rights in law to enforce Alexs promise to pay them an extra 1,000. (10 marks)

Car Filters ACCA CBL Pilot

Al operates a small business manufacturing specialist engine filters. In January he placed an advertisement in a car trade magazine stating that he would supply filters at 60 per filter, but would consider a reduction in the price for substantial orders. He received a letter from Bash Cars plc requesting his terms of supply for 1,000 filters. Al replied, offering to supply the filters at a cost of 50 each. Bash Cars plc responded to Al's letter stating that they accepted his offer but that they would only pay 45 per filter. Al wrote back to Bash Cars plc stating that he would supply the filters but only at the original price of 50. When Al's letter arrived, the purchasing director of Bash Cars plc did not notice the alteration of the price and ordered the 1,000 filters from Al, which he supplied. Required: Analyse the situation from the perspective of contract law and in particular advise Al what price he is entitled to claim from Bash Cars plc. (10 marks)

Car Filters ACCA CBL Pilot

Marking guide
Issue Law definition of invitation to treat definition of offer general rule re advertisements definition of acceptance definition & effect of counter-offer Application Conclusion 1 mark 1 mark 1 mark 1 mark 1 - 2 marks 4 marks 1 mark Max marks = 10. 1 mark

ACCA D02 Q3
In relation to the law of contract: (a) (b) distinguish between express and implied terms; (4 marks)

explain the circumstances in which terms can be implied in contracts. (6 marks) (10 marks)

ACCA CBL Pilot paper

In relation to the contents of a contract explain the following: (a) (b) (c) (d) terms; conditions; warranties; innominate terms. (2 marks) (3 marks) (3 marks) (2 marks) (10 marks)

Remedies (1)
Explain in relation to remedies for breach of contract: (a) (b) (5 marks) the difference between liquidated damages and penalty clauses. (5 marks) (10 marks)

Theres no recording for this its one for you to have a go at yourselves. Please do put your attempts on the discussion board for revision.

Emma and Sidney

ACCA

Emma, an accountant, agreed with Sidney that Sidney would redecorate Emma's business premises for 2,000. The written contract provided that: (a) (b) All woodwork would be properly prepared for painting prior to the application of paint. No paint containing lead or lead compounds would be used. (Note that in this context it is not illegal for paint to contain lead.)

The work was completed but, contrary to the terms of the contract, Sidney used paint containing lead in one of Emma's offices. As a consequence Emma suffers a serious allergic reaction and is off work for three months, during which she loses 6,000 in income. Emma knew of her allergy to lead, and that was the reason she had specified that no paint containing lead or lead compounds was to be used. She had not mentioned this reason to Sidney. Emma has also discovered that in three of her offices the woodwork was not prepared for painting before paint was applied. Emma now seeks your advice as to whether she is able to: (a) (b) Sue successfully for damages for breach of contract in respect of her loss of earnings. Obtain an order for specific performance to compel Sidney to prepare and repaint the woodwork as agreed in the contract.

Required: Advise Emma. (10 marks)