Question 1

Which sequence shows the order of importance of terms of a contract,from the most important to least important?

Accepted Answer

A)  Conditions,warranties and intermediate terms.
B)  Warranties,conditions,intermediate terms.
C)  Conditions,intermediate terms,warranties.
D)  Intermediate terms,conditions,warranties.
E)  Intermediate terms,warranties,conditions. A

Question 2

Which of the following statements about exclusion clauses is/are true?

Accepted Answer

A)  Some exclusion clauses are prohibited or modified by statute.
B)  A person who signs a receipt containing an exclusion clause will usually be bound by the clause.
C)  An exclusion clause may not be valid because its wording was unclear or inappropriate.
D)  All of the above.
E)  A and b only

Question 3

Sometimes an agreement includes a condition that a contract will only come into existence if a specific event occurs.This condition is known as:

Accepted Answer

A)  a condition ancillary to the original contract.
B)  a condition collateral to the original contract.
C)  a condition precedent.
D)  a condition subsequent.

Question 4

The parol evidence rule states that once an agreement has been put into writing oral statements by the parties:

Accepted Answer

A)  are not taken into account unless they add to,delete,vary,or contradict the written agreement.
B)  can parenthetically never be taken into account.
C)  are taken into account if the written agreement has been lost or destroyed
D)  are not taken into account if they add to,delete,vary or contradict the written statement.

Question 5

An implied term of a contract can be incorporated into a contract if several conditions are satisfied.Which of the following is not one of the conditions that must be satisfied?

Accepted Answer

A)  The implied term must be an oral statement.
B)  The implied term must be capable of clear expression.
C)  The implied term must be so obvious that it 'goes without saying'.
D)  The implied term must be reasonable and equitable.

Question 6

Two parties sue over a dispute regarding a term in a contract.The court determines that the clause in dispute is so badly drafted that a reasonable person would not be able to determine its meaning.The term is not essential to the contract.What is the most likely court decision?

Accepted Answer

A)  The specific clause is void.It can be severed from the contract.
B)  The contract is void.The parties must enter a new contract.
C)  The specific clause is void.The parties enter into a new contract to finalise the issue in conflict.
D)  The whole contract is void.The parties are released from future obligations.

Question 7

Where a contract states that the occurrence of a specific event external to the contract will end the contract,this event is known as:

Accepted Answer

A)  a condition ancillary.
B)  a condition collateral.
C)  a condition precedent.
D)  a condition subsequent.

Question 8

Under common law,which of the following statements is most accurate in relation to representations (statements) that parties make before they enter into a contract?

Accepted Answer

A)  Representations are never legally binding unless they are fraudulent.
B)  Representations could be legally binding.
C)  Representations are only legally binding if they are connected to the contract.
D)  Representations are always legally binding even when they do not form part of the contract. B

Question 9

Which of the following statements is/are true regarding the Luna Park case?

Accepted Answer

A)  The tram company breached a warranty to transport commuters during peak travel times.
B)  The court confirmed that any failure to perform a condition,no matter how small,will breach the contract and give the innocent party the right to terminate the contract.
C)  The tram company won the case and was awarded damages of more than $50 000.
D)  All of the above.

Question 10

When Carrie and Emily were discussing whether Emily would buy Carrie's road bike,Carrie made some comments about the bike which would be classified as 'opinions' under common law.Soon after Emily purchased the bike she learnt that Carrie's 'opinions' were not correct.Which of the following statements about Emily's legal rights is most accurate?

Accepted Answer

A)  She has no rights because an opinion is not legally binding under common law.
B)  She has the right to sue Emily for breach of contract because opinions become terms of a contract.
C)  She has the right to sue Emily for breach of contract because an opinion is a legally binding statement.
D)  She has no rights because an opinion is not legally binding under common law

Question 11

Delrado signed a contract that contained an exclusion clause but he reasonably believed he was signing an entry form for a competition and not entering into a contract.What is the most likely legal result?

Accepted Answer

A)  The contract is probably valid because Delrado is legally obliged to read any document before signing it.
B)  The exclusion clause is probably not valid.
C)  The exclusion clause is probably valid provided it was written in plain English.
D)  The contract is probably valid but Delrado is entitled to damages.

Question 12

Which of the following are implied terms regarding goods that cannot be excluded under the Sale of Goods Act?

Accepted Answer

A)  Goods must correspond (match) their description.
B)  Goods must be of merchantable quality.
C)  Goods must be fit for their intended purpose.
D)  All of the above.
E)  A and b only.

Question 13

In the Ginger Meggs Case (Associated Newspapers Ltd v Bancks) the High Court determined that when a newspaper breached its contract by moving a cartoon strip from page 1 to page 3 for three Sundays,it had breached:

Accepted Answer

A)  a condition.
B)  the implied term of good faith but not a term of the contract.
C)  an intermediate term.
D)  a warranty.

Question 14

I am a case where a court decided that because of one party's special skill and knowledge,the statement that party made before the formation of a contract was a term of the contract.What is my name?

Accepted Answer

A)  The Oscar Chess case.
B)  The White Ants Invasion case (Van Den Esschert v Chappell) .
C)  De Laselle v Guilford.
D)  The Dick Bentley case. D

Question 15

What common law remedy or remedies are available to an innocent party where the other party has breached a condition of the contract?

Accepted Answer

A)  Damages and injunctions.
B)  Termination of the contract or an order for specific performance or both remedies.
C)  Termination of the contract or damages or both remedies.
D)  Damages only.

Question 16

Some contracts include exclusion clauses.These clauses are often included:

Accepted Answer

A)  to ensure that one of the parties will not be liable in specific circumstances,including for a breach of the contract.
B)  to limit the legal rights of minors or persons with disabilities.
C)  to ensure that only the contracting parties have legal rights and obligations.
D)  to allow both parties to avoid liability for statutory or exculpatory breaches.

Question 17

A term in a contract that is regarded as essential in the performance of the contract is known as:

Accepted Answer

A)  a unilateral term.
B)  a condition.
C)  an innominate term.
D)  a warranty.

Question 18

Sometimes terms of a contract are uncertain,meaning they fail to give a clear indication of the intentions of the parties.What is the legal effect of uncertainty?

Accepted Answer

A)  A breach of a condition has occurred.
B)  The contract is void.
C)  A breach of an intermediate term has occurred which makes the contract illegal.
D)  A breach of a warranty has occurred.

Question 19

Which of the following circumstances in the creation of a contract create an exception (or exceptions) to the parol evidence rule?

Accepted Answer

A)  Custom or trade usage.
B)  The written document showed only part of the agreement.
C)  One party innocently made a false statement.
D)  All of the above.
E)  A and B only.

Question 20

Which of the following is not a term which can be included in a contract as an implied term?

Accepted Answer

A)  One implied by uncertainty
B)  One implied by previous dealings or conduct.
C)  One implied by the courts.
D)  One implied by custom or usage.
E)  One implied by statute.

Exam 15: Terma of a Contract

Which sequence shows the order of importance of terms of a contract,from the most important to least important?

Correct Answer
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A

Which of the following statements about exclusion clauses is/are true?

Correct Answer
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Sometimes an agreement includes a condition that a contract will only come into existence if a specific event occurs.This condition is known as:

Correct Answer
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The parol evidence rule states that once an agreement has been put into writing oral statements by the parties:

Correct Answer
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An implied term of a contract can be incorporated into a contract if several conditions are satisfied.Which of the following is not one of the conditions that must be satisfied?

Correct Answer
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Two parties sue over a dispute regarding a term in a contract.The court determines that the clause in dispute is so badly drafted that a reasonable person would not be able to determine its meaning.The term is not essential to the contract.What is the most likely court decision?

Correct Answer
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Where a contract states that the occurrence of a specific event external to the contract will end the contract,this event is known as:

Correct Answer
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Under common law,which of the following statements is most accurate in relation to representations (statements) that parties make before they enter into a contract?

Correct Answer
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B

Which of the following statements is/are true regarding the Luna Park case?

Correct Answer
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Correct Answer
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Delrado signed a contract that contained an exclusion clause but he reasonably believed he was signing an entry form for a competition and not entering into a contract.What is the most likely legal result?

Correct Answer
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Which of the following are implied terms regarding goods that cannot be excluded under the Sale of Goods Act?

Correct Answer
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In the Ginger Meggs Case (Associated Newspapers Ltd v Bancks) the High Court determined that when a newspaper breached its contract by moving a cartoon strip from page 1 to page 3 for three Sundays,it had breached:

Correct Answer
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I am a case where a court decided that because of one party's special skill and knowledge,the statement that party made before the formation of a contract was a term of the contract.What is my name?

Correct Answer
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D

What common law remedy or remedies are available to an innocent party where the other party has breached a condition of the contract?

Correct Answer
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Some contracts include exclusion clauses.These clauses are often included:

Correct Answer
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A term in a contract that is regarded as essential in the performance of the contract is known as:

Correct Answer
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Sometimes terms of a contract are uncertain,meaning they fail to give a clear indication of the intentions of the parties.What is the legal effect of uncertainty?

Correct Answer
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Which of the following circumstances in the creation of a contract create an exception (or exceptions) to the parol evidence rule?

Correct Answer
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Which of the following is not a term which can be included in a contract as an implied term?

Correct Answer
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Exam 15: Terma of a Contract

Which sequence shows the order of importance of terms of a contract,from the most important to least important?

Correct AnswerverifiedA

Which of the following statements about exclusion clauses is/are true?

Correct AnswerverifiedShow Answer

Sometimes an agreement includes a condition that a contract will only come into existence if a specific event occurs.This condition is known as:

Correct AnswerverifiedShow Answer

The parol evidence rule states that once an agreement has been put into writing oral statements by the parties:

Correct AnswerverifiedShow Answer

An implied term of a contract can be incorporated into a contract if several conditions are satisfied.Which of the following is not one of the conditions that must be satisfied?

Correct AnswerverifiedShow Answer

Two parties sue over a dispute regarding a term in a contract.The court determines that the clause in dispute is so badly drafted that a reasonable person would not be able to determine its meaning.The term is not essential to the contract.What is the most likely court decision?

Correct AnswerverifiedShow Answer

Where a contract states that the occurrence of a specific event external to the contract will end the contract,this event is known as:

Correct AnswerverifiedShow Answer

Under common law,which of the following statements is most accurate in relation to representations (statements) that parties make before they enter into a contract?

Correct AnswerverifiedB

Which of the following statements is/are true regarding the Luna Park case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Delrado signed a contract that contained an exclusion clause but he reasonably believed he was signing an entry form for a competition and not entering into a contract.What is the most likely legal result?

Correct AnswerverifiedShow Answer

Which of the following are implied terms regarding goods that cannot be excluded under the Sale of Goods Act?

Correct AnswerverifiedShow Answer

In the Ginger Meggs Case (Associated Newspapers Ltd v Bancks) the High Court determined that when a newspaper breached its contract by moving a cartoon strip from page 1 to page 3 for three Sundays,it had breached:

Correct AnswerverifiedShow Answer

I am a case where a court decided that because of one party's special skill and knowledge,the statement that party made before the formation of a contract was a term of the contract.What is my name?

Correct AnswerverifiedD

What common law remedy or remedies are available to an innocent party where the other party has breached a condition of the contract?

Correct AnswerverifiedShow Answer

Some contracts include exclusion clauses.These clauses are often included:

Correct AnswerverifiedShow Answer

A term in a contract that is regarded as essential in the performance of the contract is known as:

Correct AnswerverifiedShow Answer

Sometimes terms of a contract are uncertain,meaning they fail to give a clear indication of the intentions of the parties.What is the legal effect of uncertainty?

Correct AnswerverifiedShow Answer

Which of the following circumstances in the creation of a contract create an exception (or exceptions) to the parol evidence rule?

Correct AnswerverifiedShow Answer

Which of the following is not a term which can be included in a contract as an implied term?

Correct AnswerverifiedShow Answer

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A

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B

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D

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