Question 1

Why did the court find that the contract was frustrated in the case of: Taylor v Caldwell (1863)122 ER 309?

Accepted Answer

A) Due to the declaration of war and the consequent impossibility of performing the contract. 
B) Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract. 
C) Due to the fundamental and radical change in the circumstances of the contract. 
D) Due to the complete destruction of the subject matter of the contract.

Question 2

If there has been substantial performance of the contract,the doctrine of substantial performance may permit the defaulting party to still obtain the contract price.

Accepted Answer

A) True 
 B)False

Question 3

Why did the court find that the contract was frustrated in the case of: Krell v Henry [1903] 2 KB 740?

Accepted Answer

A) Due to the declaration of war and the consequent impossibility of performing the contract. 
B) Due to the complete destruction of the subject matter of the contract. 
C) Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract. 
D) Due to the fundamental and radical change in the circumstances of the contract.

Question 4

What is the effect of a frustrating event upon the obligations of the parties to a contract?

Accepted Answer

A) The contract becomes voidable by either party,and until one of the parties voids the contract it is valid and enforceable. 
B) The contract is void from the frustrating event and any obligations arising before the frustrating event must still be fulfilled. 
C) The contract is void ab initio ('from the beginning'),the parties are to be restored to their original positions,and any payments already made refunded to the payer. 
D) Each party is still obliged to fulfil their obligations under the contract as if the frustrating event had not occurred.

Question 5

If a party promises to perform services,but fails to perform them in the time set forth by the contract,the party has committed a(n);

Accepted Answer

A) actual breach. 
B) total breach. 
C) failure to comply. 
D) anticipatory breach.

Question 6

Which of the following statements is the best description of discharge by novation?

Accepted Answer

A) One party leads the other to reasonably believe that strict performance will not be insisted upon. 
B) A new agreement is substituted for the old by the parties. 
C) Both parties abandon their original agreement while it is still executory. 
D) A party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

Question 7

If one party indicates that they will not be performing their part of the contract prior to the time for performance,the innocent party must wait until the due date before they can sue for breach.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the meaning of the Latin term 'quantum meruit'?

Accepted Answer

A) As much as the person has earned or as much as they deserve. 
B) The interpretation of an argument or document in the manner least favourable to the party who put it forward. 
C) Restoration to the original position. 
D) Let the buyer beware.

Question 9

The purpose of the Frustrated Contracts Acts of NSW and S.A.is to:

Accepted Answer

A) Imply terms into the contract to govern the circumstances which have occurred. 
B) Abolish the doctrine of frustration. 
C) Adjust the rights of the parties so that there will be a fairer outcome. 
D) Render all contracts enforceable despite the occurrence of a frustrating event.

Question 10

Which of the following is NOT an example of an assignment of rights by operation of law?

Accepted Answer

A) Rights against a manufacturer under the Australian Consumer Law. 
B) Executor of a deceased estate. 
C) Bankruptcy. 
D) Assignments under the state property law statutes.

Question 11

A total breach makes a contract void ab initio.

Accepted Answer

A) True 
 B)False

Question 12

A contract for personal services cannot be assigned.

Accepted Answer

A) True 
 B)False

Question 13

A discharge by accord and satisfaction occurs when:

Accepted Answer

A) one party leads the other to reasonably believe that strict performance will not be insisted upon. 
B) a new agreement is substituted for the old by the parties. 
C) both parties abandon their original agreement while it is still executory. 
D) a party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

Question 14

Why did the court find that the contract was frustrated in the case of: Horlock v Beal [1916] AC 486?

Accepted Answer

A) Due to the fundamental and radical change in the circumstances of the contract. 
B) Due to the declaration of war and the consequent impossibility of performing the contract. 
C) Due to the complete destruction of the subject matter of the contract. 
D) Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract.

Question 15

A claim for quantum meruit can be made even where the contract is classified as entire.

Accepted Answer

A) True 
 B)False

Question 16

A discharge of contract by operation of law occurs when:

Accepted Answer

A) one of the parties becomes bankrupt. 
B) each party discharges the obligation of the other to perform the contract. 
C) one of the parties fails to carry out their obligation completely,and the other party accepts this. 
D) performance of the contract becomes impossible due to the occurrence of an unforeseen event.

Question 17

Use practical examples to illustrate each of the four circumstances in which incomplete performance of your obligations under a contract legally and fairly gives rise to a right to at least partial payment.

Accepted Answer

The answer of Use practical examples to illustrate each of...

Question 18

The absence of privity of contract will not prevent a claim under the Australian Consumer Law.

Accepted Answer

A) True 
 B)False

Question 19

According to the case of Trident General Insurance Co Ltd v.McNiece Bros Pty Ltd [1988] HCA 44,indemnity is not available to a party who is not part of the actual insurance policy.

Accepted Answer

A) True 
 B)False

Question 20

In the case of discharge by performance,the parties are discharged from any obligations provided that performance corresponds exactly with the terms of the contract.

Accepted Answer

A) True 
 B)False

Exam 14: Rights and Liabilities of the Parties,discharge and Remedies

Why did the court find that the contract was frustrated in the case of: Taylor v Caldwell (1863) 122 ER 309?

If there has been substantial performance of the contract,the doctrine of substantial performance may permit the defaulting party to still obtain the contract price.

Why did the court find that the contract was frustrated in the case of: Krell v Henry [1903] 2 KB 740?

What is the effect of a frustrating event upon the obligations of the parties to a contract?

If a party promises to perform services,but fails to perform them in the time set forth by the contract,the party has committed a(n) ;

Which of the following statements is the best description of discharge by novation?

If one party indicates that they will not be performing their part of the contract prior to the time for performance,the innocent party must wait until the due date before they can sue for breach.

Which of the following is the meaning of the Latin term 'quantum meruit'?

The purpose of the Frustrated Contracts Acts of NSW and S.A.is to:

Which of the following is NOT an example of an assignment of rights by operation of law?

A total breach makes a contract void ab initio.

A contract for personal services cannot be assigned.

A discharge by accord and satisfaction occurs when:

Why did the court find that the contract was frustrated in the case of: Horlock v Beal [1916] AC 486?

A claim for quantum meruit can be made even where the contract is classified as entire.

A discharge of contract by operation of law occurs when:

Use practical examples to illustrate each of the four circumstances in which incomplete performance of your obligations under a contract legally and fairly gives rise to a right to at least partial payment.

The absence of privity of contract will not prevent a claim under the Australian Consumer Law.

According to the case of Trident General Insurance Co Ltd v.McNiece Bros Pty Ltd [1988] HCA 44,indemnity is not available to a party who is not part of the actual insurance policy.

In the case of discharge by performance,the parties are discharged from any obligations provided that performance corresponds exactly with the terms of the contract.