Deck 5: Privity

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

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

Question 10

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 11

What difficulties in construction are presented by oral contracts?

Question 12

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

Question 13

Does every agreement have a surrounding matrix of fact?

Question 14

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

Question 15

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

Question 16

Which of these cases concern negligent mis-statement?

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

Question 17

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 18

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 19

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

Question 20

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 21

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 22

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 23

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

Question 24

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

Question 25

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 26

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

Question 27

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

Question 28

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 29

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 30

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 31

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 32

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 33

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 34

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

Question 35

The doctrine of privity means that:

A) Only parties providing consideration can have rights under the contract
B) Only parties providing consideration can have obligations under the contract
C) Only parties providing consideration can have rights and obligations under the contract
D) Contract law ensures the protection of privacy

Question 36

Which case is seen as establishing the modern law of privity?

A) Stilk v Myrick
B) Atlas v Kafco
C) Tweddle v Atkinson
D) Thomson v Metropolitan Railway

Question 37

How did Mrs Beswick get round the privity rule?

A) As a party to the contract
B) As the administrator of the estate
C) As a co-signatory
D) Due to family connections

Question 38

What is the effect of the Contracts (Rights of Third Parties) Act 1999?

A) To abolish the privity rule
B) To allow all third parties to enforce rights
C) To allow third parties under certain circumstances to enforce rights
D) To reaffirm the privity rule

Question 39

In which of the following cases was the claimant not able to recover damages due to the privity rule?

A) Jackson v Horizon Holidays
B) Woodar Investment v Wimpey
C) Linden Gardens v Lenesta
D) Lloyds v Harper

Question 40

In which case was a collateral contract found between a manufacturer and a customer?

A) Esso v Marden
B) Spurling v Bradshaw
C) Shanklin Pier v Detel Products
D) Andrews v Hopkinson

Question 41

Anna lets her flat to Brian with the understanding that Brian will pay the rent to her son Calvin. Could Calvin enforce Brian's obligations?

A) Yes
B) No
C) Yes, if he relies on the Contracts (Rights of Third Parties) Act 1999
D) Yes, unless something in the contract indicates that this was not Anna and Brian's intention

Question 42

Liar Ltd a manufacturer of shaving products, as part of a promotional campaign offered a free manual shaver to any customer who bought their electric shaving machine in a high street shop between November and December 2008. Would their customers:

A) Be able to demand the manual shaver?
B) Not be able, because they did not purchase the shaver directly from Liar Ltd?
C) Not be able, because promotional campaigns are not to be taken seriously?
D) Be able as promotional campaigns are binding?

Question 43

The case of Shanklin Pier v Detel Products (1951) concerned a collateral contract in relation to

A) cleaning product used to clean a pier
B) The lifespan of paint used to paint a pier
C) An agreement not to allow any other company to supply maintenance products for the structure of the pier
D) The durability of the wooden structure of a pier

Question 44

in Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd (1915) an action taken by Dunlop against Selfridge for damages and an injunction:

A) Failed - Dunlop were not a party to the agreement between Dew and Selfridge
B) Failed - Selfridge was not a part to the agreement between Dew and Dunlop
C) Was successful - Dunlop were deemed to be a party to the contract
D) Was successful under a collateral contract

Question 45

Which of the following cases provides guidance in the area of privity of contract in relation to exclusion clauses?

A) Linden Gardens Ltd v Lenesta Sludge Disposals Ltd (1993)
B) Alfred McAlpine Construction Ltd v Panatown Ltd (1998)
C) Adler v Dickson (1955)
D) Clarke v Dunraven