Law

Question 1

When must consideration happen for a contract?

Answer 1

At the time of the promise or at some time in the future.

Question 2

When is revocation made (letters)?

Answer 2

When the letter is received.

Question 3

When is acceptance made (letters)?

Answer 3

When the letter is sent.

Question 4

What MUST consideration be?

Answer 4

Sufficient.

Question 5

What does consideration need not be?

Answer 5

Adequate.

Question 6

Can an offer be revocated by a reliable third party?

Answer 6

Yes.

Question 7

What is the difference between the level of care shown to children and adults?

Answer 7

A higher standard of care is owed to more vulnerable claimants such as children.

Question 8

When must a company secretary be qualified?

Answer 8

For public companies.

Question 9

What is classed a a void contract?

Answer 9

An illegal one.

Question 10

What 3 situations make a contract voidable?

Answer 10

1. Lack of capacity.
2. Lack of free will.
3. Contract made due to misrepresentaion.

Question 11

What can make a contract unenforceable?

Answer 11

When it’s not in the correct form.

Question 12

What are the 3 elements of a contract?

Answer 12

1. Agreement.
2. Consideration.
3. Intention.

Question 13

What 3 things can be an offeree?

Answer 13

1. One person.
2. Group.
3. Whole world.

Question 14

What 3 things don’t constitute an offer?

Answer 14

1. Invitation to treat.
2. Statement of intention.
3. Request for information.

Question 15

What are 5 ways an offer can be terminated?

Answer 15

1. Rejection.
2. Counter-offer
3. Lapse
4. Revocation
5. Failure of condition.

Question 16

Define “executed”.

Answer 16

When the act is performed at time of agreement.

Question 17

Define “executory”.

Answer 17

A promise to do something in the future.

Question 18

Explain “sufficient not adequate”.

Answer 18

As long as it has value it doesn’t matter if it isn’t equal.

Question 19

What 4 things are “good consideration”?

Answer 19

1. Executed.
2. Executory.
3. Sufficient not adequate.
4. Forbearance/waiver of existing rate

Question 20

What 4 things are “not good consideration”?

Answer 20

1. Past
2. Performance of an existing statutory duty (unless exceeded).
3. Performance of an existing contractual duty.
4. Waiver of existing debt.

Question 21

Within what time period must a private company give notice of its refusal to register a requested transfer of its shares?

Answer 21

2 months and must give reason for its refusal.

Question 22

What is a shareholder’s liability limited to?

Answer 22

The unpaid amount on their share capital.

Question 23

When must property transactions be approved?

Answer 23

When they exceed either £100k or £5k and 10% of the company’s assets.

Question 24

Will a defective appointment render a director’s actions invalid?

Answer 24

No.

Question 25

What makes up "express" terms?

Answer 25

Specifically agreed and must be clear.

Question 26

What are the 3 ways terms can be "implied"?

Answer 26

1. By custom. 2. By statue. 3. By the courts.

Question 27

What does "privity of contract" mean?

Answer 27

Only the parties to the contract can enforce/be sued under it.

Question 28

What are the 2 exceptions to the privity of a contract?

Answer 28

1. Agency law. | 2. Contract (Rights of third parties) act.

Question 29

What are the 3 ways a contract can be terminated?

Answer 29

1. By performance. 2. By frustration. 3. By breach.

Question 30

What does discharging a contract "by performance" mean?

Answer 30

Fulfilling contractual duties.

Question 31

What does discharging a contract "by frustration" mean?

Answer 31

Forces outside the contract make performance impossible.

Question 32

What does discharging a contract "by breach" mean?

Answer 32

Contractual duties not properly performed.

Question 33

What is actual breach?

Answer 33

Breach at the time of the contract.

Question 34

What is anticipatory breach?

Answer 34

Breach before time performance is due.

Question 35

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Answer 35

page 8

Question 36

What 3 things must a claimant prove for negligence?

Answer 36

1. Breach of care owed. 2. Breach of duty. 3. Breach caused the damage suffered by claimant.

Question 37

Who is duty of care owed to?

Answer 37

"Neighbour" (Person claimant would reasonably foresee as affected by their actions.)

Question 38

What level of care may be accepted in an emergency?

Answer 38

Lower.

Question 39

What level of care may be accepted for a vulnerable claimant?

Answer 39

Higher.

Question 40

In what situation does the claimant not have to prove the breach of duty? (Latin)

Answer 40

Res ipsa loquitur.

Question 41

In what situation can you claim purely for financial losses?

Answer 41

If there is a "special relationship" between the parties.

Question 42

What is the point of damages?

Answer 42

To put the claimant in the position they would be in if negligence hadn't happened.

Question 43

What are the 3 defences for negligence?

Answer 43

1. Contributory negligence. 2. Volenti non fit injuria. 3. Exclusion clauses.

Question 44

What is "contributory negligence"?

Answer 44

Claimant is partly responsible for losses so damages are reduced.

Question 45

What is "volenti non fit injuria"?

Answer 45

Claimant freely consented to risk of harm, no damages are awarded.

Question 46

What are "exclusion clauses"?

Answer 46

Can limit/exclude liability, must pass legal tests.

Question 47

What is "vicarious liability"?

Answer 47

One person can be liable for another's actions. (e.g. employer for employee)

Question 48

What are the 7 duties of an agent?

Answer 48

1. Accountability. 2. No conflict of interest. 3. Performance. 4. Obedience. 5. Skill. 6. Personal performance. 7. Confidence,

Question 49

What are the 3 rights of an agent?

Answer 49

1. Indemnity. 2. Remuneration. 3. Lien.

Question 50

What 3 different types of authority does an agent have?

Answer 50

1. Actual express. 2. Actual implied. 3. Ostensible/apparant.

Question 51

What 2 ways does liability work with agents?

Answer 51

1. Disclosed principal (principal is liable) | 2. Undisclosed principal (agent is liable)

Question 52

Who has the authority in a partnership?

Answer 52

All partners are agents of the firm and can bind all the partners in contract if they are acting within their authority.

Question 53

What are new partners liable for?

Answer 53

Debts incurred since they became partner.

Question 54

What are retiring partners liable for?

Answer 54

Debts incurred since they became partner.

Question 55

What is the liability of an LLP partner limited to?

Answer 55

Their capital contribution.

Question 56

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Answer 56

page 18

Question 57

What 3 documents are send on the registration of a company? (2 different options.)

Answer 57

1. Memorandum of associatiion. 2. Application. 3. Statement of capital and initial shareholdings. OR 1. Statement of guarantee. 2. Statement of proposed officers. 3. Statement of compliance.

Question 58

What date does a company exist from?

Answer 58

The date on the "Certificate of Incorporation".

Question 59

What must public companies also gain before they commence trading?

Answer 59

A trading certificate.

Question 60

What is a "pre-incorporation contract"?

Answer 60

A contract that is made on behalf of company before registration.

Question 61

Who is liable for a "pre-incorporation contract"?

Answer 61

Promoter, not company.

Question 62

Can a company ratify a "pre-incorporation contract"?

Answer 62

No.

Question 63

Is a secretary required for a public company?

Answer 63

Yes.

Question 64

Should a secretary for a public company be qualified?

Answer 64

Yes.

Question 65

What type of company is required to issue a directors remuneration report?

Answer 65

Quoted.

Question 66

What is a "de facto" director?

Answer 66

Someone who acts as a director, although not validly appointed as one. They become liable as a director due to their conduct.

Question 67

What is a "de jure" director?

Answer 67

Someone who has been appointed following the correct procedure.

Question 68

What is a shadow director?

Answer 68

Someone that the directors take instructions/directions from.

Question 69

What is an alternate director?

Answer 69

A director may appoint an alternate director to attend and vote at board meetings.

Question 70

What is an executive director?

Answer 70

Likely to be a full-time employee involved in management. (e.g. marketing director)

Question 71

What is a non-executive director?

Answer 71

Part-time, brings outside expertise to board, not an employee and exerts control over executive directors.

Question 72

What is a MD?

Answer 72

Board delegates the day-to-day management of the company's business to them.

Question 73

What is a chairman?

Answer 73

Responsible for ensuring procedure in meetings is followed, usually a non-executive director.

Question 74

What are the 3 ways a director can be appointed?

Answer 74

1. Shareholders by ordinary resolution. 2. Directors on casual basis. 3. On incorporation.

Question 75

What are the 5 ways a director can "vacate" the office?

Answer 75

1. Death/winding up. 2. Removal by shareholders (ordinary resolution with special notice). 3. Resignation. 4. Required by articles. 5. Disqualification.