Which of the following statements most accurately describes the contractual position in Baird Textiles v Marks & Spencer (2001)?
There was a legally binding contract based on implied terms. made a legally binding commitment to pay for clothes for the next season (and Baird had committed itself to supplying those clothes).
There was no contract of any kind – every aspect of the relationship was based on trust alone.
The contract was invalid because it failed to comply with the relevant formalities for guarantees.
There was no long term contract but Marks & Spencer had
Why is a building society unlikely to lend you money to buy a house without a legally binding, written contract?
Because building societies are real sticklers for that sort of thing
Because a written contract is required for tax purposes
Because otherwise the legal obligations of both parties may be unclear
Because the building society will want the assurance that if you fail to repay the loan, it can take legal action to recover the money it has lent you
All of the above
C and D
Pears Ltd sends Mango Plc two proposals for the supply of fruit, one based on a fixed monthly price and the other based on a price per box of fruit (i.e. it varies according to how much Mango Plc orders each month). Mango Plc sends Pears Ltd a fax accepting its offer. Which of the following key ingredients of a legally binding agreement is missing from this scenario?
Intention to create legal relations
Agreement (offer and acceptance)
Consideration
Capacity
Pears Ltd has a parent company, Fruity Holdings Ltd. Mango Plc, which is about to enter into an agreement with Pears Ltd, wants Fruity Holdings to provide a guarantee that Pears Ltd will perform its obligations under the agreement. What formalities are required for the guarantee to be legally binding?
The guarantee must be in writing
The guarantee must be evidenced in writing
The guarantee must be signed by two directors of Fruity Holdings
What legislation sets out the formalities for cheques?
The Bills of Exchange Act 1882
The Statute of Frauds 1677
The Consumer Credit Act 1974
The Electronic Communications Act 2000
Pears Ltd accepts an order from Mango Plc for the supply of a consignment of fruit. The contract is made orally over the telephone. There is no discussion of the quality of the fruit. When the consignment arrives at Mango’s premises, most of it has gone off. Can Mango sue Pears for breach of contract?
No, because Mango should have looked out for itself and ensured that there was a written contract which said that the fruit needed to be in good condition
Yes, because it would have been an implied term of the contract that the fruit should be of satisfactory quality on delivery
No, because the contract should have been in writing
Yes, because it was an express term of the contract that the fruit should be of satisfactory quality on delivery
If Pears Ltd and Mango Plc were in dispute about a contract and one party wanted to obtain a ruling from a court clarifying what one of the terms actually meant, what should that party ask the court for?