Deck 6: The Contents of the Contract

Question 1

The Court of Appeal in Interfoto Picture Library v Stiletto Visual Programmes found that the terms relating penalty charges did form part of the contract?

Answer 1

True

Question 2

Which of the following are required to prove a misrepresentation?

A) Any statement of fact or professional opinion
B) A statement of existing fact
C) Proof that the statement induced the contract
D) Subjectively reasonable reliance on a statement

Answer 2

B,C

Question 3

In which of the following are exceptions to the parol evidence rule?

A) Situations where the parties' do not use English as their first language
B) Contracts that are commonly made orally
C) Situations where there contract contains ambiguities
D) Where a written agreement is incomplete

Answer 3

C,D

Question 4

Which of the following are types of contractual term?

A) Implicated terms
B) Express terms
C) Discrete terms
D) Implied terms

Question 5

Which of the following cases establish tests for the implication terms into a contract?

A) The Moorcock
B) Equitable Life v Hyman
C) Wilson v Best Travel Ltd
D) Shirlaw v Southern Foundries

Question 6

Implied terms may be divided into two broad categories, what are they?

A) Terms implied by statute
B) Terms implied by circumstance
C) Terms implied by law
D) Terms implied by fact

Question 7

Which of the following are terms implied into contracts for the sale of goods by the Sale of Goods Act 1979?

A) A term that goods must reach a standard that a reasonable person would regard as satisfactory
B) A term that goods must match any description of the goods given by the seller
C) A term that allows a buyer of goods to return them within 14 days of purchase
D) A guarantee that all non-perishable goods must last at least one year from purchase

Question 8

How does the law distinguish between terms and representations? Why is this distinction important?

Question 9

What remedies are available for the victim of a misrepresentation? Are these remedies adequate?

Question 10

How does the law determine whether written terms are incorporated into a contract?

Question 11

To what extent might we regard the courts approach in cases concerned with the 'incorporation' of harsh or onerous terms as being one primarily concerned with the fairness of those terms?

Question 12

Describe the process of 'interpretation' or 'construction' of contracts.

Question 13

What difficulties in construction are presented by oral contracts?

Question 14

What are the five rules of 'common sense' of 'purposive' interpretation?

Question 15

Does every agreement have a surrounding matrix of fact?

Question 16

Do the rules of 'common sense' or 'purposive' interpretation implicitly kill the parol evidence rule?

Question 17

Distinguish between conditions, warranties and innominate terms. What is the function of this distinction?

Question 18

Which of these cases concern negligent mis-statement?

A) Caparo v Dickman
B) Charles Rickards v Oppenhaim
C) Esso Petroleum v Mardon
D) Oscar Chess Ltd. Williams

Question 19

Terms of a contract implied by fact seek to give effect to what?

A) Supervening legal principles
B) Contract amendments the parties wish to make to an existing contract
C) Defects in the contract that are claimed by one party
D) The objective intentions of the parties to the contract

Question 20

In O'Brien v Mirror Group Newspapers the Court of Appeal found that terms and conditions previously printed in a newspaper could not be incorporated into a later competition.

Question 21

An entirely different set of rules for the construction of contracts applies to oral agreements?

Question 22

The decision of the House of Lords in Investors Compensation Scheme Ltd v West Bromwich Building Society clarifies that in all cases as much evidence as possible must be gathered from the matrix of fact surrounding a contract before the meaning of the contract can be considered?

Question 23

The House of Lords decision in Chartbrook Homes v Persimmon allowed evidence as to the purpose of the contract to be used in its interpretation?

Question 24

Even if a term is classified by the parties or by statute as a condition or warranty, the courts will still treat the term as being innominate.

Question 25

Innominate terms as well as being distinct from conditions and warranties have their own distinct set of corresponding remedies.

Question 26

Terms may be implied into a contract simply by virtue of being customarily used by the contracting parties or their trade.

Question 27

When implying terms, the courts main concern is ensuring that a contract is made a complete and clear as possible, even if that means making significant changes for the good of the parties.

Question 28

Terms implied by fact are implied only into the specific contract before the court?

Question 29

The Sale of Goods Act implies a term into all sales contracts the a seller must have the right to sell the goods?

Question 30

When selling to a consumer, a seller of goods can simply exclude the terms implied into the contract of sale by the Sale of Goods Act 1979?

Question 31

To rely on an exclusion clause in an unsigned contract, a party must do what?

A) Specifically bring it to the attention of the offeree by means of a separate document
B) Bring it to the attention of the offeree in a way that is proportionate to the 'harm' that might be caused by the exclusion clause
C) Such an exclusion clause cannot be relied upon in an unsigned contract and invalid, irrespective of the efforts of the offeror
D) Bring it to the attention of the offeree orally, no form of written words will suffice

Question 32

The parol evidence rule provides what?

A) That a signed, written agreement is presumed to be the only evidence of a contract to the exclusion of other documents
B) That parties may agree that their entire agreement is to be found in a single signed written document, therefore excluding any other sources of the agreement
C) That parties to a contract can exclude liability for misrepresentation
D) That parties to a contract cannot amend it later by any means

Question 33

Which of following best defines a condition of a contract?

A) A term which expresses that no contract will come into being until one party has done a pre-agreed act
B) A term which is labelled as a condition by the parties to an agreement irrespective of the obligation it contains
C) A term of a contract that contains the parties fundamental obligations, which if breached would undermine the purpose of the entire agreement
D) A minor term which if broken gives the victim no potential to seek a remedy

Question 34

Which of following best defines a warranty?

A) A collateral obligation in a contract which does not permit the contract to be rescinded
B) A primary obligation in a contract which defines the purpose of the contract
C) A promise given by one party as to the quality or durability of goods sold under a contract of sale
D) A term in a contract that makes clear that when breached allows the victim of the breach to claim damages and treat the contract as being at an end

Question 35

Which of the following best describes an innominate term?

A) A term that goes to the heart of the contract and contains a fundamental obligation
B) A term that is not usually found in a contract of the type in question
C) A term that may be classified as a condition or a warranty depending on the consequences of its breach
D) A term which the parties to the contract have not expressly identified as being either a condition or a warranty

Question 36

Does the implication of terms into contract interfere or limit the over-arching principle of freedom of contract?

Question 37

Anna agreed to sell beans to Nanki and promised that they were Mexican beans. It turned out that they were kidney beans. Nanki could challenge the contract for:

A) Misrepresentation
B) Breach of contract
C) Mistake
D) None of the above

Question 38

What is meant by the contra proferentem rule?

A) That an ambiguity in a contractual term will be interpreted in favour of the person trying to rely on it
B) That an ambiguity in a contractual term will be interpreted against the person trying to rely on it
C) That the court will always favour defendants
D) That the court will always favour claimants

Question 39

Which of the following is not a way to imply terms into contracts?

A) In the interests of fairness
B) By custom
C) By statute
D) By necessity

Question 40

Angela bought an ipod from Addica Electronics only to discover a tiny scratch when she returned home. Would she

A) Be able to return it for a full refund?
B) Be able to get some reduction in the purchase price?
C) Have it repaired?
D) Be able to select from the above?

Question 41

What is not required to include an express term into the contract?

A) Adequate notice
B) Signature
C) Either
D) Both notice and signature

Question 42

What is a 'collateral contract'?

A) A secondary contract between the parties?
B) A contract for mortgage securities?
C) An invalid contract?
D) A guarantee?

Question 43

Which of the following is not a category of contractual terms?

A) Conditions
B) Warranties
C) Innominate
D) Guarantees

Question 44

Who is an 'officious bystander'?

A) A police officer?
B) A reasonable fictional third party
C) A community elder
D) An officer of the court

Question 45

The case of Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd (1965) is authority for the fact that:

A) If the substance of a statement suggests that further verification is required, it is unlikely to be a term
B) Where a statement is made by an expert in a particular area to a non-expert it is likely to be a term
C) Where the parties have committed their statements to writing, they will be recognised as terms
D) Where the statement has not been included in a written contract, it will never be a term

Question 46

Terms can be implied into a contract under:

A) The Sale of Goods Act 1972 and the Supply of Goods and Services Act 1984
B) The Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982
C) The Sale and Supply of Goods Act 1979 and the Supply of Goods and Services Act 1985
D) The Sale of Goods (Implied Terms) Act 1979 and the Supply of Goods and Services Act 1982

Question 47

Where can the statutory provision be found that specifies that where goods are sold by description, there is an implied condition that they will match the description?

A) S.12 Sale of Goods Act 1979
B) S.14 Sale of Goods Act 1979
C) Section 13 Sale of Goods Act 1982
D) Section 13 Sale of Goods Act 1979