Chapter 13 End of Chapter Questions

. Which of the following statements is true about implying terms in fact:

The touchstone is reasonableness not necessity.

The touchstone is necessity not reasonableness.

Implication is a distinct process from interpretation

Implication is part of the same process as interpretation.

. A contracts to purchase a projector from B. After purchase, C visits A to show him how to use it, having the same projector himself. C discovers the projector is missing a remote control, which A did not know was an accessory that could be used with the projector. Can A claim that B was in breach of an implied term to include the remote in the sale?

Yes

No

. Which of the following statements best describes the business efficacy test?

A term will be implied if necessary to make the contract work.

A term will be implied in order to make the contract work better.

A term will be implied in order to prevent a commercial absurd result.

None of the above options are correct.

. Which of the following is not a condition of implication based upon a customary term?

The term is recognised as binding.

The term is well-known.

The term is a sensible one to include.

The term is certain.

. Why should judges be more cautious than Parliament in implying terms in law?

Judges lack democratic legitimacy.

Implying a term into contracts of a certain type is often best achieved through legislation.

The economic impact of implying a term into all contracts of a particular type cannot be easily assessed by judges.

All of the options given are correct.

. How have the courts narrowed the boundary between terms implied in law and terms in fact?

Using policy considerations when implying terms in fact.

Narrowly defining the type of contract in which a term is implied in law.

Using reasonableness as a touchstone for terms implied in fact.

None of the options given is correct.

. A and B are contracting for the sale of a flat in a building managed by A. A does not wish to have to maintain the corridors of the building. How might A make sure that a term will not be implied requiring her to do this?

Include a term that requires B to carry out maintenance of the benefit of his flat.

Make sure the contract makes business sense without A having to perform maintenance.

Insert an express term in the contract to state that A will not be carrying out corridor maintenance.

All of the options given are correct.

Quiz Content