Chapter 11 Self-test questions

. A, a retired car dealer, contracts with B for the purchase of a minibus which B used to use in his old public transportation business. B tells A that the bus has 24 seats. When A purchases the vehicle, he finds it only has 21. A sues B for breach of contract. Is this claim likely to succeed?

Yes

No

. Which of the following oral statements is most likely to be considered a term?

A buys a new car and, while bragging about it, tells B that it has a new 'X100' engine. Excited by this, a month later B makes an offer to buy the car from A, which A accepts. B claims that it is a term of the contract that the car has a new 'X100' engine.

A and B are having a baby and decide that when it is born in six months' time they need to buy a new home. Their friend, C, is interested in their property and asks if there is any damp, to which A and reply that there isn't. C purchases the property 10 months later. C claims that it is a term of the contract that property is free from damp.

A decides to sell his antique clock at a TV auction. B is interested in purchasing it, and the day before the auction, B asks A if it can be fitted with a new power supply to work, to which A replies that it can. B has the winning bid at the auction the next day. B claims that it is a term of the contract that the clock can be fitted with a new power supply.

None of the above oral statements are likely to be a term of the contract.

. Why might courts now be more willing to find that an exclusion clause is incorporated into a contract?

The relevant principles of incorporation apply to all terms generally and courts are now more willing to 'rewrite' contracts.

In a difficult economic landscape, courts should enable a business to rely upon its own exclusion clause to escape liability as otherwise the business may go bankrupt.

The enactment of the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015 allows courts to find some clauses are unenforceable if they are 'unfair'.

None of the options given is correct.

. A works as a chef in B's pub. The contract they have entered into is oral not written. At the beginning and end of shifts he has to sign a time sheet. At the bottom of that sheet, it states that B's standard terms apply regarding the price of meals consumed. Does this incorporate B's terms?

Yes

No

. Which of the following considerations will generally not be relevant when considering whether 'reasonable notice' has been given such that a term will be incorporated into the contract?

Whether the document is of a type which usually includes contractual terms.

An objective view of the circumstances.

Illiteracy.

None of the options given is correct.

. What factor was not part of the Court of Appeal's reasoning in O'Brien v MGN Ltd that Mr O'Brien was not entitled to a £50,000 prize?

The prize was excessive for a competition that required no skill.

Mr O'Brien was receiving a windfall and was not having a burden put onto him.

The clause was a normal clause that might be expected.

The newspaper had taken reasonable steps to inform Mr O'Brien of the terms.

. A intends to rent his bike to B. He wishes to exclude all contractual liability. Which of the following would be the most effective means of doing so?

Write B a ticket for rental and include an exclusion clause on the ticket.

Attach a note to the seat of the bike which B will see when he takes the bike.

Place a large sign containing the exclusion clause in large print on A's garage door, which B will knock on before entering A's shop.

Give B a ticket with the exclusion clause printed on its face when B returns with the bike.

. A is negotiating for the lease of B's flat. The contract states that A is to have no pets in the flat. A has a cat she hopes can live with her. B refuses to change the written terms of the contract, but tells A that it is fine for her to keep her cat in the flat. B later tries to terminate the contract with A on the grounds that she has a cat in the flat contrary to the written terms of the lease. The court finds there was a collateral contract that allowed A to have a pet in the flat. What consideration did A provide?

Continuing to maintain her cat.

Executing the lease in the form given to her.

Not telling anyone else that she had been allowed to keep a cat.

None of the options given is correct.

Chapter 11 Self-test questions

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