Question 1

Which of the following statements is true of 'direct loss' arising from a breach of contract by a defendant?

Accepted Answer

A) It is loss that is not caused directly by the breach or would not ordinarily be expected to result from the breach. 
B) It entitles a plaintiff to an award of special, abnormal or extraordinary damages. 
C) It is only recoverable if it can be shown that the parties had the possibility of such loss in mind when the contract was formed. 
D) It is loss incurred by the plaintiff that flows naturally from the breach according to the ordinary course of events. 
A) It is loss that is not caused directly by the breach or would not ordinarily be expected to result from the breach. 
B) It entitles a plaintiff to an award of special, abnormal or extraordinary damages. 
C) It is only recoverable if it can be shown that the parties had the possibility of such loss in mind when the contract was formed. 
D) It is loss incurred by the plaintiff that flows naturally from the breach according to the ordinary course of events. D

Question 2

A contract will be void due to 'unconscionable conduct' where:

Accepted Answer

A) one party has unfairly taken advantage of a special weakness or disadvantage of the other party. 
B) one party has used their own special weakness to gain an unfair advantage. 
C) one party has a special weakness or disadvantage although the stronger party is unaware of that weakness or disadvantage. 
D) one of the parties has a special weakness or disadvantage although there is no evidence that the other party has used it to derive an unfair benefit. 
A) one party has unfairly taken advantage of a special weakness or disadvantage of the other party. 
B) one party has used their own special weakness to gain an unfair advantage. 
C) one party has a special weakness or disadvantage although the stronger party is unaware of that weakness or disadvantage. 
D) one of the parties has a special weakness or disadvantage although there is no evidence that the other party has used it to derive an unfair benefit. A

Question 3

Which of the following is most likely to make a contract unenforceable?

Accepted Answer

A) Lack of writing 
B) Lack of consent 
C) Lack of enthusiasm 
D) Lack of value 
A) Lack of writing 
B) Lack of consent 
C) Lack of enthusiasm 
D) Lack of value B

Question 4

Which of the following is not a special weakness or disadvantage which could make a contract unenforceable due to unconscionability?

Accepted Answer

A) An inability to read English. 
B) A lack of education. 
C) Intoxication. 
D) A tendency to procrastinate. 
A) An inability to read English. 
B) A lack of education. 
C) Intoxication. 
D) A tendency to procrastinate.

Question 5

'Nominal damages' are:

Accepted Answer

A) damages awarded to a plaintiff who has not suffered any actual loss as a result of a breach of conduct. 
B) an award of damages to the plaintiff in an amount above and beyond mere compensation, intended by the court to penalise or punish the defendant. 
C) a pre-estimate of the quantity of damages one party will be entitled to in the event of breach by the other party. 
D) damages payable to the plaintiff that cannot be easily calculated in advance. 
A) damages awarded to a plaintiff who has not suffered any actual loss as a result of a breach of conduct. 
B) an award of damages to the plaintiff in an amount above and beyond mere compensation, intended by the court to penalise or punish the defendant. 
C) a pre-estimate of the quantity of damages one party will be entitled to in the event of breach by the other party. 
D) damages payable to the plaintiff that cannot be easily calculated in advance.

Question 6

In a legal context, 'duress' is:

Accepted Answer

A) where one of the parties is mistaken about the legal consequences of a contract. 
B) a factor that renders a contract void. 
C) a factor that makes a contract voidable at the election of the innocent party. 
D) where one party compels another not to enter into a contract by threatening physical harm. 
A) where one of the parties is mistaken about the legal consequences of a contract. 
B) a factor that renders a contract void. 
C) a factor that makes a contract voidable at the election of the innocent party. 
D) where one party compels another not to enter into a contract by threatening physical harm.

Question 7

Benjamin is contracted to advertise exclusively for the fashion brand, Racoz.In breach of his contract, he fronts various advertising campaigns for rival brand Polar Laugh Raulen.Racoz sues Benjamin for breach of contract, seeking an injunction.The request by Racoz will not be granted if:

Accepted Answer

A) Benjamin has a past history of breaching the contracts that he has entered into. 
B) an award of damages would not be adequate. 
C) Benjamin has already gambled away the monies he received from Polar Laugh Raulen. 
D) Racoz has behaved unfairly or unconscionably. 
A) Benjamin has a past history of breaching the contracts that he has entered into. 
B) an award of damages would not be adequate. 
C) Benjamin has already gambled away the monies he received from Polar Laugh Raulen. 
D) Racoz has behaved unfairly or unconscionably.

Question 8

Niko orders a steak in a restaurant.When the waiter returns, he regretfully informs Niko that there is no more steak.Instead, he offers Niko a lamb chop.Niko accepts as he is hungry and does not want to make a fuss.At the end of the meal, he refuses to pay the bill, claiming that the restaurant was in breach of its contract to serve him the steak that he ordered.Which is correct?

Accepted Answer

A) The restaurant is in breach of the statutory implied term relating to description. 
B) The restaurant is in breach of an express term of the contract. 
C) The restaurant is in breach both of an implied term as to description of goods and of an express term of the contract. 
D) Niko accepted the restaurant's offer of a lamb chop instead of steak, and therefore has no legal remedy. 
A) The restaurant is in breach of the statutory implied term relating to description. 
B) The restaurant is in breach of an express term of the contract. 
C) The restaurant is in breach both of an implied term as to description of goods and of an express term of the contract. 
D) Niko accepted the restaurant's offer of a lamb chop instead of steak, and therefore has no legal remedy.

Question 9

Mickey and Rourke want to voluntarily terminate their contract by agreement.How can they do so?

Accepted Answer

A) The parties can mutually agree to replace the existing agreement with a new agreement in different terms. 
B) Each party can release the other party from their contractual obligations. 
C) By replacing the existing agreement with a new agreement in different terms or by releasing each other from their contractual obligations. 
D) They are unable to do so.A contract can only be terminated by performance, breach or frustration. 
A) The parties can mutually agree to replace the existing agreement with a new agreement in different terms. 
B) Each party can release the other party from their contractual obligations. 
C) By replacing the existing agreement with a new agreement in different terms or by releasing each other from their contractual obligations. 
D) They are unable to do so.A contract can only be terminated by performance, breach or frustration.

Question 10

Where parties to a contract have a pre-existing relationship and one party has a degree of influence or dominance over the other and the stronger party takes advantage of that influence so that the weaker party does not exercise their independent judgement, the contract will be voidable by the weaker party because of:

Accepted Answer

A) unilateral mistake. 
B) common mistake. 
C) duress. 
D) undue influence. 
A) unilateral mistake. 
B) common mistake. 
C) duress. 
D) undue influence.

Question 11

Which of the following is not a generally recognised way parties might voluntarily agree to end a contract?

Accepted Answer

A) Both parties agree to mutually release each other from any future obligations. 
B) The party who has performed their obligations unilaterally releases the other party from complete performance of their obligations. 
C) The parties mutually agree to replace the existing agreement with a new agreement. 
D) One of the parties communicates their intention to the other party to voluntarily end the contract. 
A) Both parties agree to mutually release each other from any future obligations. 
B) The party who has performed their obligations unilaterally releases the other party from complete performance of their obligations. 
C) The parties mutually agree to replace the existing agreement with a new agreement. 
D) One of the parties communicates their intention to the other party to voluntarily end the contract.

Question 12

Famke leases her business premises from Jansen under a five-year lease.Three years into the five-year lease, Famke informs Jansen that she does not need the premises any longer and leaves.Jansen leaves the premises vacant for one and a half years, and then advertises for and finds a new tenant, who rents the premises for the same rent as that paid by Famke.Jansen then sues Famke for breach of contract, and seeks damages.Which of the following is most likely?

Accepted Answer

A) Jansen will be able to recover damages equal to one and a half years of rent because that is the amount of his loss as a result of Famke's breach of contract. 
B) Jansen will be able to recover damages equal to two years of rent because that is the amount of his loss as a result of Famke's breach of contract. 
C) Jansen will be able to recover damages equal to rent for the period between Famke's departure and how long it should have taken to find a new tenant if he had started looking immediately. 
D) Jansen will not be able to recover any rent from Famke since he has waited too long to commence proceedings. 
A) Jansen will be able to recover damages equal to one and a half years of rent because that is the amount of his loss as a result of Famke's breach of contract. 
B) Jansen will be able to recover damages equal to two years of rent because that is the amount of his loss as a result of Famke's breach of contract. 
C) Jansen will be able to recover damages equal to rent for the period between Famke's departure and how long it should have taken to find a new tenant if he had started looking immediately. 
D) Jansen will not be able to recover any rent from Famke since he has waited too long to commence proceedings.

Question 13

What is the doctrine that prevents a person from suing or being sued for breach of a contract to which they are not a party?

Accepted Answer

A) The doctrine of novation 
B) The doctrine of reception 
C) The doctrine of privity of contract 
D) The doctrine of conditional contracts 
A) The doctrine of novation 
B) The doctrine of reception 
C) The doctrine of privity of contract 
D) The doctrine of conditional contracts

Question 14

Alexei verbally orders a birthday cake from Ng's bakery.Alexei orders it for 'the 3rd of the month' but Alexei meant the following month and Ng thought Alexei meant this month.Which of the following is the best answer?

Accepted Answer

A) The contract is void for mutual mistake. 
B) There is common mistake and the contract is voidable. 
C) There is unilateral mistake on the part of each party and the contract is void. 
D) The contract is enforceable by either party. 
A) The contract is void for mutual mistake. 
B) There is common mistake and the contract is voidable. 
C) There is unilateral mistake on the part of each party and the contract is void. 
D) The contract is enforceable by either party.

Question 15

A 'voidable' contract is one that:

Accepted Answer

A) is effective and enforceable only if the court declares it to be so. 
B) is effective and enforceable unless terminated by either party to the contract. 
C) is effective and enforceable unless terminated by the innocent party. 
D) is effective and enforceable unless terminated by the court. 
A) is effective and enforceable only if the court declares it to be so. 
B) is effective and enforceable unless terminated by either party to the contract. 
C) is effective and enforceable unless terminated by the innocent party. 
D) is effective and enforceable unless terminated by the court.

Question 16

Kenneth enters into a contact to purchase a watch from Cole.Cole then breaches the contract by refusing to hand over the watch to Kenneth.Which of the following is the most likely circumstance in which an order for specific performance will be granted?

Accepted Answer

A) The watch is handmade and unique. 
B) The watch is extremely valuable. 
C) The watch has been promised by Kenneth as a birthday present for his daughter. 
D) A similar watch can be obtained from another watch shop. 
A) The watch is handmade and unique. 
B) The watch is extremely valuable. 
C) The watch has been promised by Kenneth as a birthday present for his daughter. 
D) A similar watch can be obtained from another watch shop.

Question 17

An 'intermediate term' is:

Accepted Answer

A) a term of the contract that is of fundamental importance. 
B) a term of the contract of lesser importance, in the absence of which the party favoured by the term would have entered into the contract anyway. 
C) a term of a contract not able to be categorised as a fundamental term or as a term of lesser importance, which the court will determine its effect dependant on the seriousness of the breach. 
D) an unenforceable term that court will sever from a contract in the event of a dispute. 
A) a term of the contract that is of fundamental importance. 
B) a term of the contract of lesser importance, in the absence of which the party favoured by the term would have entered into the contract anyway. 
C) a term of a contract not able to be categorised as a fundamental term or as a term of lesser importance, which the court will determine its effect dependant on the seriousness of the breach. 
D) an unenforceable term that court will sever from a contract in the event of a dispute.

Question 18

In what circumstances will a court refuse to grant an order for specific performance?

Accepted Answer

A) Where the breach of contract is a failure to provide unique goods to a buyer. 
B) Where the defendant is in breach of contract. 
C) Where damages are not an appropriate remedy. 
D) Where the plaintiff has acted unfairly or unconscionably. 
A) Where the breach of contract is a failure to provide unique goods to a buyer. 
B) Where the defendant is in breach of contract. 
C) Where damages are not an appropriate remedy. 
D) Where the plaintiff has acted unfairly or unconscionably.

Question 19

In breach of her contract with Leaverpond Rovers football team, Assistant Manager Leah publishes an autobiography revealing the secret coaching methods of Team Manager Wafael.What type of remedy is Leaverpond Rovers least likely to seek?

Accepted Answer

A) Injunction 
B) Exemplary damages 
C) Nominal damages 
D) Liquidated damages 
A) Injunction 
B) Exemplary damages 
C) Nominal damages 
D) Liquidated damages

Question 20

Kieran threatens to burn down Scott's house unless Scott agrees to sell his vintage Ford Cortina to Kieran for $10 000.Scott agrees, but then sells the car to Jermaine for $50 000.What can Kieran do?

Accepted Answer

A) Nothing.The agreement between Kieran and Scott is unenforceable due to duress. 
B) Nothing.The agreement between Kieran and Scott is unenforceable due to undue influence. 
C) Sue Scott for breach of contract. 
D) Sue Jermaine for breach of contract. 
A) Nothing.The agreement between Kieran and Scott is unenforceable due to duress. 
B) Nothing.The agreement between Kieran and Scott is unenforceable due to undue influence. 
C) Sue Scott for breach of contract. 
D) Sue Jermaine for breach of contract.

Which of the following statements is true of 'direct loss' arising from a breach of contract by a defendant?

A contract will be void due to 'unconscionable conduct' where:

Which of the following is most likely to make a contract unenforceable?

Which of the following is not a special weakness or disadvantage which could make a contract unenforceable due to unconscionability?

'Nominal damages' are:

In a legal context, 'duress' is:

Benjamin is contracted to advertise exclusively for the fashion brand, Racoz.In breach of his contract, he fronts various advertising campaigns for rival brand Polar Laugh Raulen.Racoz sues Benjamin for breach of contract, seeking an injunction.The request by Racoz will not be granted if:

Mickey and Rourke want to voluntarily terminate their contract by agreement.How can they do so?

Which of the following is not a generally recognised way parties might voluntarily agree to end a contract?

What is the doctrine that prevents a person from suing or being sued for breach of a contract to which they are not a party?

Alexei verbally orders a birthday cake from Ng's bakery.Alexei orders it for 'the 3rd of the month' but Alexei meant the following month and Ng thought Alexei meant this month.Which of the following is the best answer?

A 'voidable' contract is one that:

Kenneth enters into a contact to purchase a watch from Cole.Cole then breaches the contract by refusing to hand over the watch to Kenneth.Which of the following is the most likely circumstance in which an order for specific performance will be granted?

An 'intermediate term' is:

In what circumstances will a court refuse to grant an order for specific performance?

In breach of her contract with Leaverpond Rovers football team, Assistant Manager Leah publishes an autobiography revealing the secret coaching methods of Team Manager Wafael.What type of remedy is Leaverpond Rovers least likely to seek?

Kieran threatens to burn down Scott's house unless Scott agrees to sell his vintage Ford Cortina to Kieran for $10 000.Scott agrees, but then sells the car to Jermaine for $50 000.What can Kieran do?

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

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Exam 9: Contract Law: Enforcement of the Contract

Which of the following statements is true of 'direct loss' arising from a breach of contract by a defendant?

A contract will be void due to 'unconscionable conduct' where:

Which of the following is most likely to make a contract unenforceable?

Which of the following is not a special weakness or disadvantage which could make a contract unenforceable due to unconscionability?

'Nominal damages' are:

In a legal context, 'duress' is:

Benjamin is contracted to advertise exclusively for the fashion brand, Racoz.In breach of his contract, he fronts various advertising campaigns for rival brand Polar Laugh Raulen.Racoz sues Benjamin for breach of contract, seeking an injunction.The request by Racoz will not be granted if:

Mickey and Rourke want to voluntarily terminate their contract by agreement.How can they do so?

Which of the following is not a generally recognised way parties might voluntarily agree to end a contract?

What is the doctrine that prevents a person from suing or being sued for breach of a contract to which they are not a party?

Alexei verbally orders a birthday cake from Ng's bakery.Alexei orders it for 'the 3rd of the month' but Alexei meant the following month and Ng thought Alexei meant this month.Which of the following is the best answer?

A 'voidable' contract is one that:

Kenneth enters into a contact to purchase a watch from Cole.Cole then breaches the contract by refusing to hand over the watch to Kenneth.Which of the following is the most likely circumstance in which an order for specific performance will be granted?

An 'intermediate term' is:

In what circumstances will a court refuse to grant an order for specific performance?

In breach of her contract with Leaverpond Rovers football team, Assistant Manager Leah publishes an autobiography revealing the secret coaching methods of Team Manager Wafael.What type of remedy is Leaverpond Rovers least likely to seek?

Kieran threatens to burn down Scott's house unless Scott agrees to sell his vintage Ford Cortina to Kieran for $10 000.Scott agrees, but then sells the car to Jermaine for $50 000.What can Kieran do?

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

Filters