Question 1

Construing a contract means

Accepted Answer

A)  interpreting a contract. 
B)  forming a contract. 
C)  amending a contract. 
D)  making an addition to a contract. 
E)  executing a contract. 
A)  interpreting a contract. 
B)  forming a contract. 
C)  amending a contract. 
D)  making an addition to a contract. 
E)  executing a contract. A

Question 2

A collateral contract is

Accepted Answer

A)  a separate agreement between the parties included in a written contract. 
B)  a void agreement that is related to another written agreement. 
C)  a separate agreement between the parties made at the same time as a main agreement between the parties, but not included in the written document. 
D)  an agreement between parties to a contract that precedes another written agreement. 
E)  an unenforceable agreement that is related to another written agreement. 
A)  a separate agreement between the parties included in a written contract. 
B)  a void agreement that is related to another written agreement. 
C)  a separate agreement between the parties made at the same time as a main agreement between the parties, but not included in the written document. 
D)  an agreement between parties to a contract that precedes another written agreement. 
E)  an unenforceable agreement that is related to another written agreement. C

Question 3

Michael Products Limited and Jensen Corporation enter into an agreement under which Michael Products Limited agrees to supply 20 tonnes of soap to Jensen Corporation. Jensen agrees to pay $20,000 for the products. The agreement includes a provision to the effect that the agreement is conditional of Jensen providing a letter from a bank, no later than two days after the execution of the agreement, that Jensen Corporation has the funds to pay for the goods. Three days after the signing of the agreement, Michael Products Limited has not provided the letter from the bank.
Jensen Corporation can because _.

Accepted Answer

A)  terminate the contract; the contract is void 
B)  continue with the contract; the contract is not void 
C)  walk away from the contract; the contract is void 
D)  continue with the contract; the contract is effective 
A)  terminate the contract; the contract is void 
B)  continue with the contract; the contract is not void 
C)  walk away from the contract; the contract is void 
D)  continue with the contract; the contract is effective C

Question 4

The dictionary meaning of a word does not always clarify its meaning. Explain.

Accepted Answer

One of the approaches to interpretation

Question 5

The two approaches to the interpretation of contract are the

Accepted Answer

A)  straight approach and direct approach. 
B)  plain meaning approach and liberal approach. 
C)  liberal approach and straight approach. 
D)  liberal approach and direct approach. 
E)  plain meaning approach and context approach. 
A)  straight approach and direct approach. 
B)  plain meaning approach and liberal approach. 
C)  liberal approach and straight approach. 
D)  liberal approach and direct approach. 
E)  plain meaning approach and context approach.

Question 6

What is the parol evidence rule? Explain some of the qualifications to the rule.

Accepted Answer

The parole evidence rule is the rule tha

Question 7

Where the meaning of words used in a contract are ambiguous, a court will most likely

Accepted Answer

A)  require that the parties return to the drawing table and return with a better contract. 
B)  set it aside as being unenforceable. 
C)  require a jury to examine the contract and draw a new contract that will meet the expectations of the parties. 
D)  make a new contract for the parties. 
E)  assign a meaning that makes it enforceable. 
A)  require that the parties return to the drawing table and return with a better contract. 
B)  set it aside as being unenforceable. 
C)  require a jury to examine the contract and draw a new contract that will meet the expectations of the parties. 
D)  make a new contract for the parties. 
E)  assign a meaning that makes it enforceable.

Question 8

Which of the following is not true?

Accepted Answer

A)  The parole evidence rule does not exclude evidence of an oral agreement that the parties may each after they have entered into the written agreement. 
B)  Implied terms usually result from long established customs.. 
C)  The courts will admit evidence of an oral understanding about a condition precedent even when the written contracts specifies that the rights of the parties are governed exclusively by the written contract. 
D)  When parties deal expressly with a matter in a contract, a court is not precluded from finding an implied term on the same matter. 
E)  The parole evidence rule does not affect the interpretation of express terms already in a contract. 
A)  The parole evidence rule does not exclude evidence of an oral agreement that the parties may each after they have entered into the written agreement. 
B)  Implied terms usually result from long established customs.. 
C)  The courts will admit evidence of an oral understanding about a condition precedent even when the written contracts specifies that the rights of the parties are governed exclusively by the written contract. 
D)  When parties deal expressly with a matter in a contract, a court is not precluded from finding an implied term on the same matter. 
E)  The parole evidence rule does not affect the interpretation of express terms already in a contract.

Question 9

What is an implied term? In what circumstances are the courts likely to find that an implied term is appropriate to the interpretation of the contract?

Accepted Answer

An implied term is a term not expressly

Question 10

Which of the following is not a usual source of implied terms?

Accepted Answer

A)  Long established customs in particular types of trades. 
B)  Long established customs in particular types of transactions. 
C)  Terms that are reasonably necessary, in accordance with the expectation of the parties, to promote business efficacy. 
D)  What the parties discussed prior to entering the contract. 
E)  none of the above 
A)  Long established customs in particular types of trades. 
B)  Long established customs in particular types of transactions. 
C)  Terms that are reasonably necessary, in accordance with the expectation of the parties, to promote business efficacy. 
D)  What the parties discussed prior to entering the contract. 
E)  none of the above

Question 11

The parol evidence rule permits evidence of oral contracts entered into between the parties before they enter into a written agreement.

Accepted Answer

A) True 
 B)False

Question 12

The courts can introduce implied terms to contradict written terms if one party is more credible than the other.

Accepted Answer

A) True 
 B)False

Question 13

What is an implied term?

Accepted Answer

An implied term is a term not expressly

Question 14

Implied terms usually result from

Accepted Answer

A)  a decision of the promisee. 
B)  a decision of the promisor. 
C)  agreement between the parties. 
D)  a decision of the court. 
E)  long established customs of a particular trade. 
A)  a decision of the promisee. 
B)  a decision of the promisor. 
C)  agreement between the parties. 
D)  a decision of the court. 
E)  long established customs of a particular trade.

Question 15

Which of the following is not not true?

Accepted Answer

A)  The parol evidence rule does not affect the interpretation of express words already in a contract. 
B)  The parol evidence rule does not prevent evidence of oral contracts entered into after the written contract. 
C)  The parol evidence rule excludes evidence of oral contracts entered into after the parties enter into a written contract. 
D)  The parol evidence rule permits evidence of oral contracts entered into after the parties entered the written contract. 
E)  The parol evidence rule excludes terms that were discussed before entering a contract but were not included in the contract. 
A)  The parol evidence rule does not affect the interpretation of express words already in a contract. 
B)  The parol evidence rule does not prevent evidence of oral contracts entered into after the written contract. 
C)  The parol evidence rule excludes evidence of oral contracts entered into after the parties enter into a written contract. 
D)  The parol evidence rule permits evidence of oral contracts entered into after the parties entered the written contract. 
E)  The parol evidence rule excludes terms that were discussed before entering a contract but were not included in the contract.

Question 16

To interpret the express provisions of a contract a court will

Accepted Answer

A)  begin with the ordinary meaning of the words, and then will examine their meaning within the context of the words. 
B)  examine the ordinary meaning of the words, and then will determine the most widely held meaning of the words. 
C)  examine the meaning of the words within the context and then will examine the ordinary meaning of the words. 
D)  begin with the ordinary meaning of the words and will then ask a jury to determine the societal meaning of the words. 
E)  examine the most widely held meaning of the words. 
A)  begin with the ordinary meaning of the words, and then will examine their meaning within the context of the words. 
B)  examine the ordinary meaning of the words, and then will determine the most widely held meaning of the words. 
C)  examine the meaning of the words within the context and then will examine the ordinary meaning of the words. 
D)  begin with the ordinary meaning of the words and will then ask a jury to determine the societal meaning of the words. 
E)  examine the most widely held meaning of the words.

Question 17

A condition precedent is not one of a series of conditions that are discussed by the parties prior to the entering of a contract.

Accepted Answer

A) True 
 B)False

Question 18

What is the Moorcock doctrine? When will the courts not apply the Moorcock doctrine to introduce an implied term?

Accepted Answer

According to the Moorcock doctrine, the

Question 19

Explain the plain meaning approach to the interpretation of contracts. What are the limitations of this approach?

Accepted Answer

The plain meaning approach to the interp

Question 20

A court will sometimes recognize the existence of an implied term from discussions that the parties had prior to entering into the contract.

Accepted Answer

A) True 
 B)False

Exam 11: The Interpretation of Contracts

Construing a contract means

A collateral contract is

The dictionary meaning of a word does not always clarify its meaning. Explain.

The two approaches to the interpretation of contract are the

What is the parol evidence rule? Explain some of the qualifications to the rule.

Where the meaning of words used in a contract are ambiguous, a court will most likely

Which of the following is not true?

What is an implied term? In what circumstances are the courts likely to find that an implied term is appropriate to the interpretation of the contract?

Which of the following is not a usual source of implied terms?

The parol evidence rule permits evidence of oral contracts entered into between the parties before they enter into a written agreement.

The courts can introduce implied terms to contradict written terms if one party is more credible than the other.

What is an implied term?

Implied terms usually result from

Which of the following is not not true?

To interpret the express provisions of a contract a court will

A condition precedent is not one of a series of conditions that are discussed by the parties prior to the entering of a contract.

What is the Moorcock doctrine? When will the courts not apply the Moorcock doctrine to introduce an implied term?

Explain the plain meaning approach to the interpretation of contracts. What are the limitations of this approach?

A court will sometimes recognize the existence of an implied term from discussions that the parties had prior to entering into the contract.

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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