Chapter 10 Self-test questions

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. It is sometimes argued that implied terms are based on the presumed intentions of the parties. More recently though it has been argued that the true basis on which Parliament and the courts imply terms into contracts is the reasonable expectations of the contracting parties as seen from an objective perspective (see excerpts from Collins and Steyn set out at pp. 370-372 in the textbook). Which of the following features of the terms implied by the Sale of Goods Act 1979 and the Consumer Rights Act 2015 would seem most clearly to support the latter argument?

The fact that Parliament has intervened to limit the ability of sellers to contract out of these terms correct incorrect

The fact that consumer sales and commercial sales are distinguished correct incorrect

The fact that some implied terms have the status of a contractual condition correct incorrect

None of the options given are correct correct incorrect

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. Terms may be implied into a contract from the usage or custom of the industry or market in which the parties transact. A custom will not, though, be implied into a contract where it is inconsistent with the express terms of the contract—true or false?

True correct incorrect

False correct incorrect

Depends on the facts of the case correct incorrect

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. Which of the following propositions was clearly rejected by the House of Lords in Liverpool City Council v. Irwin [1977] AC 239?

Different tests should be applied depending on whether the term is to be implied as a matter of fact or as a matter of law correct incorrect

The term implied in Irwin applies to all tenancy contracts between occupants of flats in tower blocks and their landlords correct incorrect

A test of 'reasonableness' should be applied in determining whether or not to imply a term into a contract correct incorrect

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. In order to imply a term as a matter of fact into a contract between two commercial parties both of whom have access to legal advice, what test must the person seeking to imply the term into the contract satisfy?

The term is a reasonable one to be implied into the contract correct incorrect

The term appears to be fair correct incorrect

Had the term been suggested to the parties, they might have agreed to it correct incorrect

It is necessary to imply the term into the contract in order to make it work correct incorrect

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. What is the relationship between the interpretation of an express term of a contract and the implication of a term into the contract?

The two processes are identical correct incorrect

There is no relationship whatsoever between the two processes correct incorrect

The two processes are linked in some way but are not identical correct incorrect