Contract Terms

Question 1

How can terms be incorporated in to a contract?

Answer 1

a) signature
b) reasonable notice before / at the
c) previous consistent dealings

Question 2

When will a term not be incorporated even if the contract has been signed?

Answer 2

a) term is illegible
b) misrepresentation
c) onerous and unusual

Question 3

Breach of which express terms can terminate the contract?

Answer 3

a) conditions
b) innominate terms

Question 4

What is a condition?

Answer 4

A major term of the contract

Question 5

What is a warranty?

Answer 5

A minor term of the contract that can lead to damages

Question 6

What is an innominate term?

Answer 6

A contract term where the remedy depends on the seriousness of the breach

Question 7

What terms are implied at common law?

Answer 7

Those implied
a) by custom
b) in fact
c) in law

Question 8

What terms are implied by statute?

Answer 8

Those under:
a) Sale of Goods Act and;
b) Supply of Goods & Services Act
c) Consumer Rights Act

Question 9

What terms are implied under the Sale of Goods Act?

Answer 9

a) seller has the right to sell the goods
b) goods correspond with description
c) goods are of satisfactory quality
d) goods are fit for purpose

Question 10

What are the implied terms under the Supply of Goods and Services Act?

Answer 10

a) right to transfer ownership of the goods
b) goods correspond with description
c) goods are of satisfactory quality
d) goods are fit for purpose
e) service will be carried out with reasonable care & skill
f) service done within a reasonable time
g) reasonable sum charged

Question 11

What terms are implied under the Consumer Rights Act?

Answer 11

a) goods of satisfactory quality
b) goods are fit for purpose
c) goods correspond with description
d) right to transfer the goods
e) service carried out with reasonable care & skill
f) reasonable price
g) reasonable time

Question 12

What rights does a consumer have under the Consumer Rights Act?

Answer 12

a) short-term right to reject & get full refund
b) right to repair or replacement
d) right to a price reduction

Question 13

What is the ‘contra proferentem rule’?

Answer 13

Where there is ambiguity about an exemption clause, this will be constructed against the person relying on it

Question 14

What does the Unfair Contract Terms Act do to exemption clauses?

Answer 14

a) prevents D from excluding liability by ref to the term or;
b) the clause has no effect on the term or;
c) subjects the term to a requirement of reasonableness

Question 15

What will the court consider when deciding on the reasonableness of an exemption clause?

Answer 15

a) bargaining position of parties
b) any inducement to agree
c) whether the customer knew / ought to know about the exemption clause
d) where (if relevant) it was reasonable to expect compliance with a condition

Question 16

What cannot be excluded under the Consumer Rights Act?

Answer 16

a) goods to be of satisfactory quality
b) goods to be fit for purpose
c) goods to be as described

Question 17

What cannot be excluded from service contracts under the Consumer Rights Act?

Answer 17

a) perform service with reasonable care & skill
b) services for a reasonable price (if prevents refund)
c) service done within a reasonable time (if prevents refund)

Question 18

What is the general rule regarding exemption clauses and 3rd parties?

Answer 18

The clause cannot protect a 3rd party due to the privity rule

Question 19

What is the exception to the rule on exemption clauses and 3rd parties?

Answer 19

Where the 3rd party is named / identified as part of a class entitled to benefit