Which of the following is an example of liquidated damages clause?
1. "In the event of a delay to the Offshore Installation Completion Date as per the Contract Schedule for which Contractor is solely responsible, Contractor shall pay to Company 0.25% per day of delay, subject to a maximum of 10% of the Initial Contract Price."
2. "If Seller breaches its obligation to deliver goods in accordance with the schedule provided for in this contract, Seller shall pay Buyer $x per day for each day of delay"
3. "The Contractor shall defend and hold the Buyer, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the Buyer."
4. "The contract is subjected to delay remedies. The amount will be agreed by both parties during the delivery"

• A.2 and 4 only
• B.1 and 3 only
• C.3 and 4 only
• D.1 and 2 only

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Cleveland Insurance (Cleveland) offers a range of insurance services. The main software used in the call centre is a customer relationship management (CRM) system. Cleveland perceived an urgent need to replace the existing CRM system to deal with the increasing number of customers and services.
Urgent Digital Ltd (Digital) is one of the bidders of Cleveland's ITT for designing, building and managing the new CRM system. Its bid team is led by Hank Irvine, its technical director. Hank realises that winning the Cleveland contract (valued at approximately £50M) will enhance his career. During discussions with Cleveland, Hank offers certain assurances regarding timescales for the project. He has not carried out any investigations into the viability of the timescales. Hank has little idea whether the timescales can be met.
Cleveland decides that Digital's bid meets with its requirements, especially given the assurances in timescale offered by Hank, and decides to proceed with it, subject to a formal contract. Eventually, a formal contract is signed by both parties. The initial assurances given by Hank about the timing of the project are never going to be achieved and are at best grossly exaggerated.
Cleveland brought the case to the court and sought rescission of contract with Digital. Is Cleveland's claim appropriate in this case?

• A.Yes, because Cleveland needs to seek rescission first before claiming for damages
• B.Yes, because both parties agreed with rescission of their contract
• C.No, because the work had been carried out which could not be returned
• D.No, because the contract does not include any provision on rescission

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Under English law's general legal principles of contract formation, which of the following are likely to be offers? Select TWO that apply.

• A.Invitation to tender
• B.Quotation
• C.Purchase order
• D.Advertisement
• E.Catalogue

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Buyer D agrees a contract with Supplier C which includes the words 'to be agreed' in relation to the date for delivery of the goods. At the time of the contract, Buyer D is aware that the goods take two days to produce and one day to deliver. Buyer D contacts the supplier one week later, requesting the goods be delivered the following day. Supplier C is unable to deliver the next day but rather delivers the goods three days later. Is it the case that Buyer D can legally refuse to pay for the goods because Supplier C is in breach of contract?

• A.Yes, because the delivery date is an express term within the contract
• B.Yes, because the goods should have been delivered within three days
• C.No, because the goods were delivered within a reasonable time
• D.No, because there is a contract in place and the delivery date does not matter

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A manufacturing company signed a contract with a raw material supplier. The contract includes a clause on liquidated damages in case of late delivery. Purchaser was obliged to pay after 30 days from delivery.
Eventually raw material was delivered 1 week later than initial plan due to supplier's slow production process.
There is no defect in the delivered batch. Which of the following can be claimed by the manufacturing company?

• A.Rights to refunds or repairs
• B.Right of set-off
• C.Right of third party
• D.Right of extending payment

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