Question 31
A contract formed under duress is:
A. Void from the beginning
B. Voidable at the option of the party who was coerced
C. Valid and fully enforceable
D. Illegal and unenforceable
Check answer
Select an option first.
Correct answer: B — Voidable at the option of the party who was coerced
Explanation: Duress makes a contract voidable, not void; the coerced party may affirm or rescind.
Question 32
Which of the following best describes 'undue influence'?
A. A type of misrepresentation about the terms of a contract
B. Pressure applied through threats of physical violence
C. Improper use of a position of trust or ascendancy to procure a contract
D. A breach of a statutory duty
Check answer
Select an option first.
Correct answer: C — Improper use of a position of trust or ascendancy to procure a contract
Explanation: Undue influence involves exploiting a relationship of trust or dominance to persuade the other to contract.
Question 33
Damages for breach of contract are primarily intended to:
A. Punish the defaulting party
B. Place the innocent party in the position they would have been in had the contract been performed
C. Compensate the defaulting party for their losses
D. Deter future breaches by other parties
Check answer
Select an option first.
Correct answer: B — Place the innocent party in the position they would have been in had the contract been performed
Explanation: Contractual damages are compensatory – expectation loss.
Question 34
The rule in Hadley v Baxendale (1854) limits recoverable damages to:
A. The full extent of all losses suffered, however remote
B. Losses arising naturally from the breach or within the reasonable contemplation of the parties at contracting
C. Losses that were foreseen by the party in breach
D. Only financial losses, excluding any non-monetary harm
Check answer
Select an option first.
Correct answer: B — Losses arising naturally from the breach or within the reasonable contemplation of the parties at contracting
Explanation: Hadley v Baxendale: losses arising naturally, or within the parties' contemplation at time of contracting.
Question 35
The equitable remedy of 'specific performance' is awarded when:
A. Damages would be an adequate remedy
B. The contract is illegal
C. Damages would be inadequate and the subject matter is unique (e.g., land or rare goods)
D. One party refuses to sign a written contract
Check answer
Select an option first.
Correct answer: C — Damages would be inadequate and the subject matter is unique (e.g., land or rare goods)
Explanation: Specific performance is granted where money damages cannot adequately compensate.
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Question 36
An injunction as a contractual remedy is typically used to:
A. Order payment of a specific sum of money
B. Transfer property to the innocent party
C. Prevent a party from doing something that breaches the contract
D. End the contract automatically
Check answer
Select an option first.
Correct answer: C — Prevent a party from doing something that breaches the contract
Explanation: An injunction restrains a party from breaching a negative contractual undertaking.
Question 37
A contract that is 'frustrated' comes to an end because:
A. One party simply refuses to perform
B. An unforeseen event makes performance impossible, illegal, or radically different from what was agreed
C. The parties negotiated new terms
D. One party ran out of money
Check answer
Select an option first.
Correct answer: B — An unforeseen event makes performance impossible, illegal, or radically different from what was agreed
Explanation: Frustration requires a supervening event making performance impossible or radically different.
Question 38
Under the Law Reform (Frustrated Contracts) Act 1943, when a contract is frustrated:
A. All sums paid are always forfeited
B. Money paid before frustration can be recovered, and a party who has conferred a valuable benefit may recover a just sum
C. The party at fault must pay damages
D. The contract is treated as never having existed
Check answer
Select an option first.
Correct answer: B — Money paid before frustration can be recovered, and a party who has conferred a valuable benefit may recover a just sum
Explanation: The 1943 Act allows recovery of pre-frustration payments and a quantum meruit for valuable benefits conferred.
Question 39
Which factor is most significant in distinguishing an employee from an independent contractor?
A. The label used in the contract ('employee' or 'contractor')
B. Control – the degree to which the employer controls how the work is done
C. The amount of money paid
D. The location where work is carried out
Check answer
Select an option first.
Correct answer: B — Control – the degree to which the employer controls how the work is done
Explanation: Control is the original and central test for employee status.
Question 40
An employee enjoys which of the following rights that an independent contractor does NOT?
A. Right to be paid
B. Right to submit invoices
C. Statutory rights including unfair dismissal protection and redundancy pay
D. Right to enter contracts with clients
Check answer
Select an option first.
Correct answer: C — Statutory rights including unfair dismissal protection and redundancy pay
Explanation: Employees have statutory protections; self-employed contractors do not.
Question 41
Wrongful dismissal occurs when:
A. An employer dismisses an employee for an unfair reason
B. An employer dismisses an employee in breach of the contractual notice period
C. An employee resigns because the employer has fundamentally breached the contract
D. An employer fails to follow a fair procedure before dismissal
Check answer
Select an option first.
Correct answer: B — An employer dismisses an employee in breach of the contractual notice period
Explanation: Wrongful dismissal is a common law breach of contract for failure to give proper notice.
Question 42
The minimum qualifying period to bring an unfair dismissal claim is normally:
A. No qualifying period
B. 6 months' continuous employment
C. 1 year's continuous employment
D. 2 years' continuous employment
Check answer
Select an option first.
Correct answer: D — 2 years' continuous employment
Explanation: Since 2012, the qualifying period for ordinary unfair dismissal is 2 years.
Question 43
Which of the following is an example of 'automatically unfair' dismissal?
A. Dismissal for poor performance after a fair process
B. Dismissal for reasons relating to pregnancy or maternity leave
C. Dismissal for gross misconduct
D. Redundancy following a proper collective consultation
Check answer
Select an option first.
Correct answer: B — Dismissal for reasons relating to pregnancy or maternity leave
Explanation: Dismissal for pregnancy/maternity is automatically unfair; no qualifying period required.
Question 44
What is 'constructive dismissal'?
A. A dismissal without any notice
B. A resignation forced by the employer's fundamental breach of the employment contract
C. A dismissal following a disciplinary hearing
D. A dismissal due to workplace restructuring
Check answer
Select an option first.
Correct answer: B — A resignation forced by the employer's fundamental breach of the employment contract
Explanation: Constructive dismissal: employer's repudiatory breach forces the employee to resign.
Question 45
Which of the following is a potentially 'fair' reason for dismissal under the Employment Rights Act 1996?
A. The employee is pregnant
B. The employee is a trade union representative
C. The employee lacks the qualifications or capability to do the job
D. The employee made a protected disclosure (whistleblowing)
Check answer
Select an option first.
Correct answer: C — The employee lacks the qualifications or capability to do the job
Explanation: Capability (including qualifications) is one of the five potentially fair reasons under ERA 1996.
Question 46
The remedies available for unfair dismissal include:
A. Only a criminal fine on the employer
B. Reinstatement, re-engagement, and compensation
C. Imprisonment of the employer
D. An injunction preventing the employer from hiring anyone else
Check answer
Select an option first.
Correct answer: B — Reinstatement, re-engagement, and compensation
Explanation: An employment tribunal can order reinstatement, re-engagement, or compensation.
Question 47
A 'redundancy' situation arises when:
A. An employee's performance is below standard
B. The employer has ceased or intends to cease the business, or the requirements for work of a particular kind have diminished
C. An employer merges with another company
D. An employee refuses to sign a new contract
Check answer
Select an option first.
Correct answer: B — The employer has ceased or intends to cease the business, or the requirements for work of a particular kind have diminished
Explanation: Redundancy: closure of business, closure of location, or reduced need for particular work.
Question 48
The statutory minimum notice period for an employee with 10 years' continuous service is:
A. 1 week
B. 4 weeks
C. 10 weeks
D. 12 weeks
Check answer
Select an option first.
Correct answer: C — 10 weeks
Explanation: ERA 1996: 1 week per complete year of service, maximum 12 weeks. 10 years = 10 weeks.
Question 49
Which of the following correctly describes 'summary dismissal'?
A. Dismissal with full contractual notice
B. Dismissal with a written warning first
C. Immediate dismissal without notice, justifiable only in cases of gross misconduct
D. Dismissal following a formal redundancy process
Check answer
Select an option first.
Correct answer: C — Immediate dismissal without notice, justifiable only in cases of gross misconduct
Explanation: Summary dismissal is instant termination without notice; only lawful for gross misconduct.
Question 50
Which legislation primarily governs employment discrimination in the UK?
A. The Employment Rights Act 1996
B. The Equality Act 2010
C. The Companies Act 2006
D. The Health and Safety at Work Act 1974
Check answer
Select an option first.
Correct answer: B — The Equality Act 2010
Explanation: The Equality Act 2010 consolidated anti-discrimination legislation, covering nine protected characteristics.
Question 51
Which of the following is a 'protected characteristic' under the Equality Act 2010?
A. Salary level
B. Job title
C. Religion or belief
D. Years of work experience
Check answer
Select an option first.
Correct answer: C — Religion or belief
Explanation: The Equality Act 2010 protected characteristics include religion or belief (nine in total).
Question 52
Under the concept of 'economic duress', a contract is voidable if:
A. One party applied illegitimate pressure leaving the other no practical choice but to agree
B. One party made a financial loss on the contract
C. The price agreed was unfair to one party
D. One party lacked commercial experience
Check answer
Select an option first.
Correct answer: A — One party applied illegitimate pressure leaving the other no practical choice but to agree
Explanation: Economic duress requires illegitimate pressure leaving the victim no realistic alternative.
Question 53
The 'literal rule' of statutory interpretation requires courts to:
A. Give words their ordinary, natural meaning even if the result seems absurd
B. Interpret statutes to correct any mischief they were designed to address
C. Interpret statutes broadly to achieve Parliament's intention
D. Apply the same meaning used in EU law
Check answer
Select an option first.
Correct answer: A — Give words their ordinary, natural meaning even if the result seems absurd
Explanation: The literal rule directs courts to apply the plain grammatical meaning of words.
Question 54
The 'golden rule' of statutory interpretation allows courts to:
A. Always apply the literal meaning of words
B. Modify the literal meaning where applying it produces an absurd or repugnant result
C. Override Acts of Parliament they consider unjust
D. Apply the European Convention on Human Rights to all statutes
Check answer
Select an option first.
Correct answer: B — Modify the literal meaning where applying it produces an absurd or repugnant result
Explanation: The golden rule allows departure from literal meaning to avoid an absurd or repugnant outcome.
Question 55
Which of the following statements about 'quantum meruit' is correct?
A. It is a claim for the full contractual price
B. It is a claim for a reasonable sum for work already done when a contract is unenforceable or silent on price
C. It is an order requiring a party to perform the contract
D. It is only available in criminal proceedings
Check answer
Select an option first.
Correct answer: B — It is a claim for a reasonable sum for work already done when a contract is unenforceable or silent on price
Explanation: Quantum meruit ('as much as has been earned') is a quasi-contractual claim for reasonable payment.
Question 56
Which of the following most accurately describes 'strict liability' in tort?
A. Liability based on proof of intention
B. Liability that arises without proof of fault or negligence
C. Liability shared equally between two defendants
D. Liability limited by a contractual cap
Check answer
Select an option first.
Correct answer: B — Liability that arises without proof of fault or negligence
Explanation: Strict liability imposes responsibility regardless of fault (e.g., Rylands v Fletcher; Consumer Protection Act 1987).
Question 57
The Caparo three-part test for establishing a duty of care requires:
A. Foreseeability, proximity, and it must be fair, just and reasonable to impose a duty
B. Intent, causation, and damage
C. An offer, acceptance, and consideration
D. Foreseeability, fault, and financial loss
Check answer
Select an option first.
Correct answer: A — Foreseeability, proximity, and it must be fair, just and reasonable to impose a duty
Explanation: Caparo Industries v Dickman [1990]: (1) foreseeable damage, (2) proximity, (3) fair/just/reasonable to impose duty.
Question 58
A claimant must prove 'but for' the defendant's breach the damage would not have occurred. This is:
A. The proximity test
B. The but-for test of factual causation
C. The reasonable man standard
D. The Bolam principle
Check answer
Select an option first.
Correct answer: B — The but-for test of factual causation
Explanation: The but-for test is the test of factual causation in negligence.
Question 59
The minimum qualifying period to bring a claim for a statutory redundancy payment is:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Check answer
Select an option first.
Correct answer: B — 2 years
Explanation: ERA 1996: 2 years' continuous employment required to qualify for a statutory redundancy payment.
Question 60
Which of the following is NOT a requirement for a valid acceptance of an offer?
A. Acceptance must be unconditional
B. Acceptance must be communicated to the offeror
C. Acceptance must be in writing
D. Acceptance must correspond exactly to the terms of the offer
Check answer
Select an option first.
Correct answer: C — Acceptance must be in writing
Explanation: Acceptance does not generally need to be in writing; it must be unconditional, communicated, and mirror the offer.
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