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Return to JC Smith's The Law of Contract, 3e Student Resources
Chapter 23 Self-test questions
Common mistake: contracts void for failure of a basic contractual assumption
Quiz Content
*
not completed
.
Under which circumstance(s) will a contract
not
be void due to a common mistake?
Where the risk of an assumption failing has been allocated to one of the parties under the contract.
correct
incorrect
Where the failure of an assumption is attributable to the fault of one of the parties.
correct
incorrect
Where one party induces the other party's mistake.
correct
incorrect
All of the options given are correct.
correct
incorrect
*
not completed
.
Why did the High Court of Australia hold the defendant Commission liable for breach of contract in
McRae v Commonwealth Disposals Commission
, despite their mistake?
The tanker did not exist.
correct
incorrect
The claimants were not mistaken.
correct
incorrect
The Commission bore the risk of the tanker not actually existing.
correct
incorrect
All of the options given are correct.
correct
incorrect
*
not completed
.
How may section 6 of the Sale of Goods Act 1979 be excluded?
Only by an express term.
correct
incorrect
Only by an implied term.
correct
incorrect
By either an express or an implied term.
correct
incorrect
Section 6 cannot be excluded.
correct
incorrect
*
not completed
.
Will a common assumption as to the value of goods bought or sold be 'basic', if it emerges that the goods are in fact worth much more than the parties have assumed?
Yes.
correct
incorrect
No.
correct
incorrect
*
not completed
.
According to Lord Atkin in
Bell v Lever Bros
, there are very limited instances when a contract would be void for the failure of a basic common assumption. Which of the options given was
not
one of these?
Where the parties are mistaken as to the location of the subject matter.
correct
incorrect
Where the subject matter does not exist.
correct
incorrect
Where title to the goods sold does not belong to the seller, but to another person.
correct
incorrect
Lord Atkin gave all of these examples.
correct
incorrect
*
not completed
.
What is the effect of a common mistake?
The contract is rendered void in all cases.
correct
incorrect
The contract is rendered voidable in all cases.
correct
incorrect
The contract is rendered void in most cases.
correct
incorrect
The contract is terminated from the time when the mistake is discovered.
correct
incorrect
*
not completed
.
On what grounds has
Solle v Butcher
been
criticised?
The requirement of 'fundamental' mistake is unclear.
correct
incorrect
The case can only be supported by recognising that
Bell v Lever Bros
was based on an incomplete statement of the law.
correct
incorrect
It sits uncomfortably with a fundamental principle of common law,
caveat emptor
.
correct
incorrect
All of the options given are correct.
correct
incorrect
*
not completed
.
Why is
The Great Peace
controversial?
It is not clear that the facts of
The Great Peace
lent themselves to overruling
Solle v Butcher
.
correct
incorrect
The Court of Appeal departed from
Solle v Butcher
, by which it was bound.
correct
incorrect
Solle v Butcher
had introduced a welcome element of remedial flexibility.
correct
incorrect
All the above
correct
incorrect
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