Deck 23: Conditions, Warranties, and Innominate Terms

Question 1

After Hongkong Fir, it is less likely that a court will find a term to be either a condition or a warranty.

Answer 1

False

Question 2

Which of the following options are relevant to whether the breach of an innominate term entitles the injured party to terminate the contract? Please select all that apply.

A) The nature of the breach
B) The effect of the breach
C) The foreseeability of the breach
D) The reason behind the breach

Answer 2

A,B

Question 3

To which of the following remedies is an innocent party who suffers the breach of a contractual warranty entitled?

A) Damages only
B) Damages and a right to terminate the contract
C) A right to terminate the contract only
D) A right to rescind or terminate the contract only

Answer 3

A

Question 4

Pear Inc enters into a contract with Golden Dragon Restaurant to supply the latter with chopsticks that are 15 centimeters long. When the chopsticks are delivered, Golden Dragon discovers that the chopsticks are 1 millimeter shorter than requested. Is Golden Dragon entitled to reject the order for breach of a condition?

A) Yes
B) No, but it can seek damages.
C) No, and it cannot seek damages.
D) None of the options provided is correct.

Question 5

If a contract negotiated between commercial parties labels a term as a condition, it will always be treated as a condition.

Question 6

If a party affirms a contract after a repudiatory breach, he cannot then change his mind and then seek to terminate it.

Question 7

Perpetua orders 50 red roses from her neighbourhood florist for her red-themed birthday party. When the flowers are delivered, Perpetua is furious that the roses are pink instead of red. When would her short-term right to reject the flowers reasonably be expected to expire?

A) One day after delivery (or within a week at the very most)
B) 30 days after delivery
C) One year after delivery
D) None of the options provided is correct.
E) g. flowers.

Question 8

If a party's performance falls short of the standard required by the contract only in some relatively trivial aspect, how does the doctrine of substantive performance operate to mitigate its liability?

A) The party in breach is entitled to the contract price, but the innocent party may counterclaim for any loss sustained as a result of the defective performance.
B) The party in breach is entitled to recover from the innocent party a sum representing the value of the benefit conferred upon the other.
C) The party in breach is entitled to recover from the innocent party all costs incurred in the performance of the contract.
D) None of the options provided is correct.