Chapter 25 Self-test questions

. Can a victim of a breach of contract always sue for damages and terminate the contract?

They may sue for damages and they may always terminate the contract.

They may sue for damages but they may not always terminate the contract.

They may not always sue for damages but they may terminate the contract.

They cannot sue for damages or terminate the contract.

. Which of the options given is not a category of terms?

Conditions.

Warranties.

Injunctions.

Innominate terms.

. What is the consequence of a breach of warranty?

The injured party could terminate the contract and claim damages.

The injured party could terminate the contract.

The injured party could claim damages.

The injured party has no remedy unless a condition is breached.

. What is the effect of breach of an innominate term?

It entitles the innocent party to damages only.

It entitles the innocent party to terminate the contract.

Nothing, the contract remains in force.

It depends.

. According to The Hongkong Fir, how might the nature of innominate terms be assessed?

With a rules-based approach.

With an undisciplined approach.

With a case-by-case approach.

With a structured discretionary approach.

. Which of the options given best characterises the approach of the courts to innominate terms?

Courts always appear keen to allow the innocent party to terminate a contract where there has been breach of an innominate term.

Courts normally appear keen to allow the innocent party to terminate a contract where there has been breach of an innominate term.

Courts rarely appear keen to allow the innocent party to terminate a contract where there has been breach of an innominate term.

Courts never appear keen to allow the innocent party to terminate a contract where there has been breach of an innominate term.

. Under the Sale of Goods Act 1979, how are terms categorised?

Conditions and warranties.

Conditions and innominate terms.

Warranties and innominate terms.

All terms are innominate terms.

. In the shipping industry, is an obligation to make payment on time usually a condition?

Yes.

No.

. Fill in the missing word: the courts are _______ willing to give express termination clauses their natural meaning.

Always.

Usually.

Rarely.

Never.

. Is the insertion of an express termination clause into a contract likely to exclude a party's common law rights?

Yes.

No.

. What is the consequence for the innocent party of a repudiatory breach of contract?

The innocent party must terminate the contract.

The innocent party may choose to terminate the contract.

The innocent party may only set aside the contract where the value of damages would be greater than the cost of performance.

The innocent party must not terminate the contract.

. What type of breach of contract automatically brings an end to a contract?

Breach of condition.

Breach of warranty.

Breach of innominate term.

None of the options given is correct.

. Are the implied terms in the Consumer Rights Act 2015 to be classified as conditions?

Yes, in all cases.

Yes, in some cases.

No, unless the consumer persuades the vendor to agree to such a classification.

No.

. When must a consumer's 'short-term right to reject' under the Consumer Rights Act 2015 be exercised?

Within 30 days from when ownership is transferred to them.

Within 30 days from when the goods have been delivered.

Within 30 days from when the trader has notified the consumer that the goods have been installed.

All of the options given are correct.

. How important is the distinction between conditions, warranties, and innominate terms in unilateral contracts?

It is more important than the assessment in bilateral contracts.

It is just as important as the assessment in bilateral contracts.

It is less important than the assessment in bilateral contracts.

It is not important at all.

. Why did the Court of Appeal overturn the initial judgment in United Dominion Trust (Commercial) Ltd v Eagle Aircraft Services Ltd?

It was unnecessary to determine whether the defendant was in breach, as the parties had not concluded their contract.

The judge was wrong to conclude that UDT did not notify Eagle within seven days.

The judge was wrong to decide on whether UDT notified Eagle, but right to decide on whether UDT called upon Eagle to repurchase within a reasonable time.

The judge did not identify enough instances of breach of contract.

. Why did the widow's claim in Cutter v Powell fail?

The contract had been frustrated.

She was not the party able to bring the claim.

The entire obligation condition had not been fulfilled.

The contract had not been accepted.

. What doctrine may mitigate the defaulter's liability, where they have breached an entire obligation?

Substantial performance.

Causation.

Remoteness.

All of the options given are correct.

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