Chapter 9 Self-test questions

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. Portapizza sent an email with an attached contract to Joe for the provision of pizzas for Joe's company party. The contract mentioned the company's standard terms of business and in the accompanying email it was specified that these terms and conditions would be forwarded without delay. In which of the following cases would Portapizza's standard business terms have been effectively incorporated into the contract, such that they might rely on an exclusion clause in these standard terms?

The terms were never sent, so Joe signed and returned the contract. The pizzas were delivered cold and Joe sued for damages. correct incorrect

Joe was running late so he did not wait for the terms to be sent through. He had regularly used Portapizza's services each year for the last ten years for his company's parties and had seen their standard terms already, so he signed and returned the contract. The terms were never sent. The pizzas were delivered cold and Joe sued for damages. correct incorrect

The terms were never sent, so Joe signed and returned the contract. On the evening, one of the delivery boys left him a copy of the terms pointing out several onerous clauses. The pizzas were cold and Joe sued for damages. correct incorrect

None of the options given are correct correct incorrect

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. A party is generally bound by terms to which he has put his own signature, whether or not he has read them. This rule is sometimes considered harsh. In what way does the law of contract seek to mitigate some of the effects of this rule?

Create wide exceptions to the rule, particularly where the terms have been explained in full to the other party correct incorrect

The Unfair Contract Terms Act 1977 correct incorrect

Emphasis on the Smith v. Hughes rule of real over apparent consent correct incorrect

Digital signatures correct incorrect

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. A party who wishes to argue that terms have been incorporated into a contract by the giving of notice must satisfy certain requirements. Which of the following are essential for incorporation by notice? Select all that apply.

Notice of the terms must be given on each of the contractual documents used correct incorrect

Greater steps must be taken to bring onerous or unusual terms to the attention of the other party correct incorrect

Notice must have been given at or before the time of contracting correct incorrect

The terms must have been contained or referred to in a document intended to have contractual effect correct incorrect

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. In order to establish the existence of a course of dealing such that incorporation of terms can be assumed, there must be both regularity and consistency of dealing between the parties. In each of the following cases, X tries to rely on an indemnity clause. In which of the following would consistency be found lacking?

X and Y (both small businesses) contract regularly in writing on the standard industry terms. In an emergency Y insists they contract by telephone. correct incorrect

X and Y (both small businesses) contract regularly by writing. The terms on which they contract have changed three times since they began dealings, but have not changed in the last 6 months. In an emergency Y insists they contract by telephone. correct incorrect

X and Y (a business and a private individual) contract regularly by writing, always with a signed indemnity form. Having developed a good relationship they begin to contract orally on the same terms. correct incorrect

X and Y (a business and a private individual) contract regularly by writing. Y knows of the existence of indemnity conditions and is occasionally asked to sign a form for this, but not always. In any case, Y has never read them. This particular time no indemnity form was signed. correct incorrect