1.Jane operates a pub in premises owned by Alice. Due to poor business, Jane wishes to terminate the 2 year lease agreement after the end of the first year. Accordingly, Jane voluntarily cancels the license to operate the pub. She then notifies Alice that she is terminating the lease as she cannot operate the pub after cancelling the pub license. Jane relies on Clause 9 in the lease agreement that provides that "in the event of the license being revoked, cancelled or suspended, either party may terminate the lease agreement". Jane has validly terminated the lease and is not liable for breach of contract

A.True

B.False

2.A Bank is proposing to extend credit facilities to a subsidiary company and requires the parent company to be a guarantor so that in the event of default by the subsidiary company, the Bank can claim from the parent company. In which of the following situations will the parent company be legally liable?

A.The parent company undertakes to exercise its influence on the subsidiary company to ensure that it meets its financial obligations to the Bank

B.The parent company will do whatever is necessary to ensure payment by the subsidiary company of its indebtedness to the Bank

C.The parent company's policy is to ensure that the subsidiary company is in a position to meet its liabilities to the Bank

D.None of the above

3.Bob and Steve entered into a written contract for the manufacture of specified equipment by Steve at a fixed price to be delivered by 1 June. Soon after Steve started work, Bob orally requested Steve to change certain specifications which Steve agreed. Steve then produced and delivered the equipment but Bob refused to accept delivery, contending that it did not conform to the original specifications. What is the legal position?

A.Bob can reject the goods since they did not conform to the original specifications when delivered

B.The oral agreement to change the specifications is not enforceable as it cannot amend the written contract

C.Bob cannot reject delivery as Steve changed the specifications at the request of Bob

D.There is no consideration for the oral agreement

4.XYZ company headhunts John and writes him a letter of intent. John agrees to start work before the contract of employment is signed. Within 3 months of John starting work, XYZ decides not to hire him which is before any legally binding contract is signed. What is the legal position?

A.XYZ is liable to John for breach of contract

B.XYZ is not liable to pay for the work done since there was no agreement to pay for pre-contractual work

C.XYZ is liable to pay 3 months wages under the contract if it had been signed by both parties

D.John can claim a reasonable amount for work done

5.The contract of employment between Dan, the employer, and Mark, the employee, contains a "payment for loyalty" clause that provides that Mark will earn the extra payment only if he remains in the employment of Dan for a specified period. Mark therefore does not expect any extra payment if he leaves Dan's employment before the end of the specified period. This is a restraint of trade clause preventing Mark from resigning and working for another employer during the specified period.

A.True

B.False