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Alan has placed an advertisement for his Beatles records in a local paper. Ben sees the advertisement and sends Alan an e-mail offering £35 for the records. In which of the following scenarios has Ben's offer not been validly accepted?


A) Alan, reading his e-mail and without replying to it, immediately sends the records by mail to Ben.
B) Alan meets Clarissa, Ben's sister, at the local supermarket and tells her he accepts Ben's offer. Clarissa promises Alan to tell Ben the following day when they meet for lunch. When Alan returns home from the supermarket, he sees an e-mail from Ben revoking his offer.
C) Alan immediately posts a letter to Ben telling him his offer has been accepted and that he can come pick up the records. When the letterbox is emptied, the postman accidentally drops Alan's letter, it falls into the sewer and is lost forever.
D) All of the options given are correct.

E) A) and B)
F) None of the above

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Beth is an elderly widow who is diagnosed with terminal cancer. As she has only six months left to live, she asks her friend Lucy, an unmarried schoolteacher, whether she will move in with her on the condition that she runs errands and drives Beth to her appointments. Lucy lives in a rent-controlled apartment in town. After a month of constant quarrelling, Beth asks Lucy to leave. The only apartments Lucy can find cost almost twice as much as her old place. Can Lucy sue Beth for damages resulting from breach of contract?


A) No, this was a social arrangement; the parties never intended to create legal relations.
B) No, the terms of the contract were insufficiently clear. The parties never agreed what the duration of their contract would be.
C) Yes, the arrangement between the parties is a contract and Beth has breached her obligations under it.

D) None of the above
E) All of the above

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Wazu Textile imports wool from India to Britain. The Indian government provides subsidies to exporters of Indian raw materials. In order to make increased profits from the shipment, Wazu decides to mix its Indian wool with inferior quality wool from Nepal and declare all its wool as Indian to the Indian Government. When the wool is auctioned off at a market in Portsmouth, the two lots are separated but given the same identification numbers in the auction catalogue. Comance Co, a UK manufacturer, bids successfully at too high a price for the Nepalese wool, thinking its Indian wool. Have the parties concluded a contract?


A) No, each party contracted for a different subject-matter.
B) No, the auctioneer could not reasonably assume Comance was bidding for Nepalese wool and accept that bid.
C) Yes, the parties' actions objectively ascertained lead to the conclusion that a contract has been concluded.

D) None of the above
E) All of the above

Correct Answer

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Express or implied agreements to use 'best endeavours' will not be enforced by the courts because they are too uncertain and it is too difficult to determine whether breach has occurred.

A) True
B) False

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