Chapter 8 Self-test questions

. Emily is doing research into genetically modified foods. BigTomato, a mass tomato producer, is interested in the results of her tests, which, she states, show that producers of tomatoes could potentially double their output crop by using biotechnology in the way she suggests. On the basis of this estimation and eager to reap such profits, BigTomato buys into the research and initiates trials immediately. The first crop is no more successful than usual. The second crop turns out to be even less resistant than their normal crops, with output only half that predicted. BigTomato sues Emily on the contract. Which of the following outcomes is most likely?

The court finds Emily's statement as to potential output to be a term of the contract and awards BigTomato damages assessed by reference to its expected profit from the transaction

The court finds Emily's statement as to potential output to be a negligent misrepresentation and awards BigTomato damages assessed by reference to its expected profit from the transaction

The court finds Emily's statement as to potential output to be a negligent misrepresentation and awards BigTomato reliance damages

. Treitel in The Law of Contract argues that, "Where a document looks like a complete contract, the party relying on it does not have to prove that he had such a belief: he can rely on a presumption to that effect which it is up to the other party to rebut". However, the weight of this presumption (that a document which looks like the whole contract is the whole contract) does not today appear to be a very strong one. Which of the following might serve to rebut such a presumption? Select all that apply.

An 'entire' agreement clause

A strong disagreement between the parties as to the existence of a collateral agreement

An industrial custom that appears to go against the contract

A written contract with final amendments agreed over the phone

Chapter 8 Self-test questions

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