Question 1

An intermediate or innominate term is neither a condition nor a warranty.

Accepted Answer

A) True 
 B)False

Question 2

Why was the statement found not to be a term in the case of: Oscar Chess v Williams [1957] 1 All ER 325?

Accepted Answer

A) The statement was a term. 
B) The plaintiff buyer had special skills or knowledge in relation to the subject matter. 
C) Neither party was in a position to know the truth. 
D) The defendant seller had special skills or knowledge in relation to the subject matter. 
A) The statement was a term. 
B) The plaintiff buyer had special skills or knowledge in relation to the subject matter. 
C) Neither party was in a position to know the truth. 
D) The defendant seller had special skills or knowledge in relation to the subject matter.

Question 3

If a document containing an exclusion clause is not signed,the clause will not apply.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is the best description of an 'innominate term'?

Accepted Answer

A) A term in a contract,non-performance of which may result in rescission of the contract and/or damages to the plaintiff. 
B) A term in a contract not essential to the main purpose of the contract,non-performance of which will not entitle the plaintiff to rescind the contract. 
C) A term in a contract which cannot be classified until after the breach has occurred and the seriousness of the effects of the breach can be ascertained. 
D) A term in a contract which provides that the contract will terminate on the happening of a particular event. 
A) A term in a contract,non-performance of which may result in rescission of the contract and/or damages to the plaintiff. 
B) A term in a contract not essential to the main purpose of the contract,non-performance of which will not entitle the plaintiff to rescind the contract. 
C) A term in a contract which cannot be classified until after the breach has occurred and the seriousness of the effects of the breach can be ascertained. 
D) A term in a contract which provides that the contract will terminate on the happening of a particular event.

Question 5

The actual intention of the parties determines whether a statement is a term or a representation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT one of the conditions which must be satisfied before a court will imply a term into a contract?

Accepted Answer

A) The term must be necessary to give business efficacy to the contract. 
B) The term must be capable of clear expression. 
C) The term must be reasonable and equitable. 
D) The term must contradict an express term of the contract. 
A) The term must be necessary to give business efficacy to the contract. 
B) The term must be capable of clear expression. 
C) The term must be reasonable and equitable. 
D) The term must contradict an express term of the contract.

Question 7

Why was the council held to be liable in The Council of the City of Sydney v West (1965)114 CLR 481?

Accepted Answer

A) There was an exclusion clause in the contract. 
B) The car was extremely valuable. 
C) Of the fundamental breach of the contract. 
D) The breach was outside the terms of the contract. 
A) There was an exclusion clause in the contract. 
B) The car was extremely valuable. 
C) Of the fundamental breach of the contract. 
D) The breach was outside the terms of the contract.

Question 8

A term in a contract which relieves a party to the contract of some or all liability under the contract is called:

Accepted Answer

A) An exclusion clause. 
B) An exemption clause. 
C) An exception clause. 
D) Any of the above. 
A) An exclusion clause. 
B) An exemption clause. 
C) An exception clause. 
D) Any of the above.

Question 9

Why was the plaintiff successful in the case of Bettini v Gye [1876] 1 QBD 183?

Accepted Answer

A) The term was an innominate term,and the breach was not serious enough to entitle the other party to repudiate. 
B) The term which had been breached was a warranty because it was subsidiary to the main purpose of the contract. 
C) The term which had been breached was a condition because the breach had a serious effect on the contract. 
D) The term which had been breached was a condition because the term was essential to the contract and the other party would not have entered into the contract without it. 
A) The term was an innominate term,and the breach was not serious enough to entitle the other party to repudiate. 
B) The term which had been breached was a warranty because it was subsidiary to the main purpose of the contract. 
C) The term which had been breached was a condition because the breach had a serious effect on the contract. 
D) The term which had been breached was a condition because the term was essential to the contract and the other party would not have entered into the contract without it.

Question 10

Why did the court imply a term into the contract in The Moorcock (1889)14 PD 64?

Accepted Answer

A) Because the practice was so well known it was understood to be included in every contract. 
B) To sever a meaningless term and save the rest of the contract. 
C) Because of prior dealings between the parties. 
D) To overcome an omission and give effect to the intention of the parties. 
A) Because the practice was so well known it was understood to be included in every contract. 
B) To sever a meaningless term and save the rest of the contract. 
C) Because of prior dealings between the parties. 
D) To overcome an omission and give effect to the intention of the parties.

Question 11

What was the reason for the decision in the case of Van Den Esschert v Chappell [1960] WAR 114?

Accepted Answer

A) The seller's oral statement was regarded as collateral. 
B) The seller's oral statement was inconsistent with the terms of the written agreement. 
C) The seller's oral statement was truthful. 
D) The seller's oral statement was ambiguous. 
A) The seller's oral statement was regarded as collateral. 
B) The seller's oral statement was inconsistent with the terms of the written agreement. 
C) The seller's oral statement was truthful. 
D) The seller's oral statement was ambiguous.

Question 12

Which of the following statements is the best description of a 'warranty'?

Accepted Answer

A) A term in a contract which provides that the contract will terminate on the happening of a particular event. 
B) A less important term in a contract,non-performance of which entitles the plaintiff to damages only. 
C) A term which must be satisfied before a contract can come into existence. 
D) A term in a contract,non-performance of which may result in rescission of the contract and/or damages to the plaintiff. 
A) A term in a contract which provides that the contract will terminate on the happening of a particular event. 
B) A less important term in a contract,non-performance of which entitles the plaintiff to damages only. 
C) A term which must be satisfied before a contract can come into existence. 
D) A term in a contract,non-performance of which may result in rescission of the contract and/or damages to the plaintiff.

Question 13

Which of the following is NOT an approach to interpretation of an exclusion clause?

Accepted Answer

A) An exclusion clause will be strictly construed against the party relying on it. 
B) An exclusion clause will not apply if it produces harsh consequences. 
C) An exclusion clause will not apply to actions outside the contract. 
D) An exclusion clause will be interpreted by construction of the contract as a whole. 
A) An exclusion clause will be strictly construed against the party relying on it. 
B) An exclusion clause will not apply if it produces harsh consequences. 
C) An exclusion clause will not apply to actions outside the contract. 
D) An exclusion clause will be interpreted by construction of the contract as a whole.

Question 14

In the case of a written contract,the courts assume that the intention of the parties is contained within the 'four corners' of the contract.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT an example of a condition precedent?

Accepted Answer

A) A contract for the sale of a block of land which is subject to the purchaser obtaining development consent from the local council. 
B) A contract for the sale of a house which is subject to a right to terminate if the vendors are unable to purchase another property by the settlement date. 
C) A contract for the sale of a house which is subject to the vendors completing the purchase of another property. 
D) A contract for the sale of land which is subject to the vendor obtaining development consent from the local council. 
A) A contract for the sale of a block of land which is subject to the purchaser obtaining development consent from the local council. 
B) A contract for the sale of a house which is subject to a right to terminate if the vendors are unable to purchase another property by the settlement date. 
C) A contract for the sale of a house which is subject to the vendors completing the purchase of another property. 
D) A contract for the sale of land which is subject to the vendor obtaining development consent from the local council.

Question 16

If a collateral contract is inconsistent with an exclusion clause in the main contract,the collateral contract will prevail.

Accepted Answer

A) True 
 B)False

Question 17

Why was the dry cleaning company held to be liable in Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB 805?

Accepted Answer

A) Because the contract so provided. 
B) Because the exemption clause in the contract was illegal. 
C) Because exemption clauses are not enforceable. 
D) Because the purpose of the exemption clause in the contract was misrepresented by the shop assistant. 
A) Because the contract so provided. 
B) Because the exemption clause in the contract was illegal. 
C) Because exemption clauses are not enforceable. 
D) Because the purpose of the exemption clause in the contract was misrepresented by the shop assistant.

Question 18

If a contract contains uncertain or meaningless terms it cannot be enforced.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT necessary for a pre-contractual statement to be enforceable as a collateral contract?

Accepted Answer

A) The pre-contractual statement is consistent with the main contract. 
B) The plaintiff only entered into the main contract because of the pre-contractual statement. 
C) The pre-contractual statement is not a term of the main contract. 
D) The pre-contractual statement is in writing. 
A) The pre-contractual statement is consistent with the main contract. 
B) The plaintiff only entered into the main contract because of the pre-contractual statement. 
C) The pre-contractual statement is not a term of the main contract. 
D) The pre-contractual statement is in writing.

Question 20

Why was the plaintiff unsuccessful in the case of Poussard v Spiers & Bond [1876] 1 QBD 410?

Accepted Answer

A) The term was an innominate term,and the breach was not serious enough to entitle the other party to repudiate. 
B) The term which had been breached was a warranty because it was subsidiary to the main purpose of the contract. 
C) The term which had been breached was a condition because the breach had a serious effect on the contract. 
D) The term which had been breached was a condition because the term was essential to the contract and the other party would not have entered into the contract without it. 
A) The term was an innominate term,and the breach was not serious enough to entitle the other party to repudiate. 
B) The term which had been breached was a warranty because it was subsidiary to the main purpose of the contract. 
C) The term which had been breached was a condition because the breach had a serious effect on the contract. 
D) The term which had been breached was a condition because the term was essential to the contract and the other party would not have entered into the contract without it.

Exam 13: Terms of the Contract

An intermediate or innominate term is neither a condition nor a warranty.

Why was the statement found not to be a term in the case of: Oscar Chess v Williams [1957] 1 All ER 325?

If a document containing an exclusion clause is not signed,the clause will not apply.

Which of the following statements is the best description of an 'innominate term'?

The actual intention of the parties determines whether a statement is a term or a representation.

Which of the following is NOT one of the conditions which must be satisfied before a court will imply a term into a contract?

Why was the council held to be liable in The Council of the City of Sydney v West (1965)114 CLR 481?

A term in a contract which relieves a party to the contract of some or all liability under the contract is called:

Why was the plaintiff successful in the case of Bettini v Gye [1876] 1 QBD 183?

Why did the court imply a term into the contract in The Moorcock (1889)14 PD 64?

What was the reason for the decision in the case of Van Den Esschert v Chappell [1960] WAR 114?

Which of the following statements is the best description of a 'warranty'?

Which of the following is NOT an approach to interpretation of an exclusion clause?

In the case of a written contract,the courts assume that the intention of the parties is contained within the 'four corners' of the contract.

Which of the following is NOT an example of a condition precedent?

If a collateral contract is inconsistent with an exclusion clause in the main contract,the collateral contract will prevail.

Why was the dry cleaning company held to be liable in Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB 805?

If a contract contains uncertain or meaningless terms it cannot be enforced.

Which of the following is NOT necessary for a pre-contractual statement to be enforceable as a collateral contract?

Why was the plaintiff unsuccessful in the case of Poussard v Spiers & Bond [1876] 1 QBD 410?

Legal Foundations

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How Law Is Made: Precedentstatute Law

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Introduction to Contracts

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Rights and Liabilities of the Parties,discharge and Remedies

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Introduction to Companies and Incorporated Associations

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