SQE1 (Solicitors Qualifying Examination) · Contract law

Formation, consideration and intention

10 practice questions, each with the answer and an explanation.

Practise Formation, consideration and intention now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. A shop displays a jacket in its window marked £60. A customer says he will pay £60 and the shopkeeper refuses to sell. What is the legal position?
  2. A company's advertisement promises £500 to anyone who uses its heater as directed for two weeks and still catches flu, and states that it has deposited £1,000 with a bank to show sincerity. Sam does s…
  3. Mika posts a letter accepting Dev's written offer on Monday. Dev posts a letter withdrawing the offer on Tuesday, which arrives on Wednesday. Mika's letter arrives on Thursday. Does a contract exist?
  4. Alan offers by email to sell his car to Beth for £8,000 and says 'reply by Friday'. Beth replies 'I accept but will pay £7,500'. Alan refuses. Is there a contract?
  5. Harry paid a plumber £300 for a job priced at £300. Midway, the plumber threatens to leave unless paid £450 for the same work. Harry agrees and later refuses to pay the extra. Applying Stilk v Myrick…
  6. A creditor agrees to accept £700 in full satisfaction of a £1,000 debt due now and the debtor pays £700. Later the creditor sues for the balance. Applying Foakes v Beer, which is correct?
  7. A landlord tells a tenant that he will accept half rent during a war so long as the war lasts. The tenant pays half rent for years. After the war ends the landlord sues for full rent for the earlier y…
  8. Two friends agree orally that one will drive the other to work each week in return for petrol money. When the driver stops, the passenger sues for breach. Which factor is most relevant to the court?
  9. A supplier agrees in writing to supply goods to a trader, stating the agreement is 'binding in honour only'. What is the effect?
  10. Which statement about the Contracts (Rights of Third Parties) Act 1999 is correct?

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