Chapter 20 Self-test questions

* not completed

. One of the fundamental tenets of English contract law is the principle of freedom of contract. It is said that this leads to the natural conclusion that the fairness of the terms of a contract is a matter for the parties to decide, and not the courts. How willing are the courts to set aside a contract on the ground that its terms are substantively unfair?

They will never do so correct incorrect

They will do so but only rarely. Courts are more willing to set aside a contract on the ground of procedural unfairness than they are in cases of alleged substantive unfairness. correct incorrect

They are willing to do so and are more likely to set aside a contract on the ground of substantive unfairness than they are in cases of procedural unfairness. correct incorrect

The courts will always set aside a contract whenever there is evidence of substantive unfairness. correct incorrect

* not completed

. Which of the following statutes play a role in regulating unfair terms in contracts? Select all that apply.

Part 2 of the Consumer Rights Act 20159 correct incorrect

Consumer Credit Act 1974 correct incorrect

Unfair Contract Terms Act 1977 correct incorrect

Law Reform (Frustrated Contracts) Act 1943 correct incorrect

* not completed

. In the search for a general principle to unite the various cases that reflect a concern for the fairness of the bargain, Lord Denning in Lloyds Bank Ltd v. Bundy [1975] QB 326 suggested there was a "single thread" running through the case law. What was this thread?

Unconscientious receipt correct incorrect

Morally reprehensible behaviour that shocks the conscience of the court correct incorrect

Inequality of bargaining power correct incorrect

Serious disadvantage or disability on the part of the party seeking to set aside the contract correct incorrect

Submit Quiz