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Chapter 5 Multiple choice questions
Return to Contract Law Concentrate 5e Student Resources
Chapter 5 Multiple choice questions
Quiz Content
*
not completed
.
Jimmy Jeanz is a famous brand of jeans. It has a contract to supply a retailer, House of Jeans, with stock of its jeans. In a sale of goods contract of this type, the jeans must be of satisfactory quality (SGA 1979, s. 14(2)). Which
one
of the following statements is a
correct
application of this provision?
House of Jeans can return any jeans and claim a full refund if it struggles to sell the Jimmy Jeanz jeans in its shops due to low demand.
correct
incorrect
House of Jeans can return a faulty pair of jeans even if the defect has been brought to its attention at the time of the sale and a lower sale price has been agreed.
correct
incorrect
If the colour of the jeans fades after only one washing, the seller has the right either to give a full refund or to issue a credit note.
correct
incorrect
If all the zippers in a batch of 100 jeans are broken, House of Jeans is entitled to return all these jeans and claim a full refund.
correct
incorrect
*
not completed
.
Where a statement made by one party before the conclusion of the contract is found to be untrue, the innocent party's remedies may vary according to whether the statement is characterized as a term or a representation. If the statement is characterized as a term, which
one
of the following assertions relating to the innocent party's remedies is
true
?
The innocent party may terminate the contract.
correct
incorrect
The innocent party is not entitled to claim damages unless it proves the misstating party's fault.
correct
incorrect
The innocent party is generally entitled to damages for expectation losses.
correct
incorrect
The innocent party may recover all those losses that are directly caused by the misstating party.
correct
incorrect
*
not completed
.
Which
one
of the following approaches would not be applied by the courts post-
Marks & Spencer plc
v
BNP Paribas Securities Services Trust Co. (Jersey) Ltd
[2015] UKSC 72, [2016] AC 742 in connection with the implication of a term
in fact
into a contract?
A term can be implied if the parties would have definitely agreed upon it had they been asked about it by an officious bystander at the time of contracting.
correct
incorrect
It will often be appropriate for a court first to construe the express words of a contract before considering whether a term should be implied.
correct
incorrect
A term will be implied into a commercial contract whenever the court considers it fair to do so.
correct
incorrect
An appropriate question to ask is whether the implication of a term would give "business efficacy" to the contract.
correct
incorrect
*
not completed
.
A, the owner of a large chain of off-licences, wishes to purchase 100,000 bottles of Liebzig white wine from B, a wine wholesaler. A states her particular wish to purchase wine of a 2007 vintage because this appears to offer the best mix of quality and value. In B's opinion, the wine is of the correct vintage but, as there are no labels on the bottles, he advises A to verify this fact independently. A purchases the wine but subsequently discovers that the wine was produced in 2009, an inferior vintage. A and B cannot agree whether the vintage of the wine was a term of the contract. Which
one
of the following statements
probably
summarises the legal position between the parties?
The vintage is a term of the contract because A has clearly attached special importance to that issue.
correct
incorrect
Because B tells A to verify the vintage independently, it is clear that there is no intention that the vintage would be a term of the contract.
correct
incorrect
The vintage is a term of the contract because this is a condition precedent for the contract to come into existence.
correct
incorrect
The vintage is not a term of the contract because A and B are equally experienced and knowledgeable on such issues.
correct
incorrect
*
not completed
.
The distinction between strict and qualified contractual obligations is that the former is an obligation to achieve a guaranteed result, while the latter is an obligation to exercise reasonable care and skill.
True
correct
incorrect
False
correct
incorrect
*
not completed
.
A breach of contract occurs when the time for performing a duty under the contract arrives and that duty is not performed. Which one of the following statements correctly describes the legal consequence of a breach of contract?
Every breach of contract makes the contract-breaker liable to pay damages to the non-breaching party.
correct
incorrect
Every breach of contract entitles the non-breaching party to terminate the contract.
correct
incorrect
A breach of contract can automatically bring the contract to an end.
correct
incorrect
The contract-breaker is not liable to pay damages if the non-breaching party sustains no loss from the breach.
correct
incorrect
*
not completed
.
Which
one
of the following statements
most accurately
describes the legal effects of a repudiatory breach by one of the parties to the contract?
The breach will not affect the subsistence of any exemption or arbitration clauses in the contract.
correct
incorrect
If the non-breaching party elects to affirm the contract, the breach will cause the secondary obligation to pay damages as compensation to accrue.
correct
incorrect
The breach will terminate the primary obligations of the contract.
correct
incorrect
The breach will not cause the secondary obligation to pay damages as compensation to accrue until the non-breaching party elects to accept the breach.
correct
incorrect
*
not completed
.
Which
one
of the following statements
most accurately
summarises the decision in
L Schuler A-G
v
Wickman Machine Tools Sales Ltd
[1974] AC 235?
Whether a right of termination arises from a breach of an innominate term depends on whether the effects of the breach will deprive the innocent party of substantially the whole of the benefit that it was intended it should obtain from the contract.
correct
incorrect
The parties are free to classify any term as a condition so that any breach of the term will give rise to a right to terminate the contract.
correct
incorrect
A term may not be recognised as a condition if the parties could not have contemplated it as having the effect of a condition, even if the parties expressly use the word 'condition' to describe the term.
correct
incorrect
A time stipulation in a commercial contract is always treated as a condition, even if the parties do not expressly classify it as such.
correct
incorrect
*
not completed
.
On 1 June, A contracts to sell a quantity of goods to B to be delivered by 1 July. On 15 June, as A is still making arrangements for the shipment of the goods, he receives a fax message from B stating that the goods are no longer wanted. Which
one
of the following statements concerning A's rights is
true
?
A is not entitled to terminate the contract or to claim damages until 1 July.
correct
incorrect
A is entitled to claim damages immediately but is not entitled to terminate the contract until 1 July.
correct
incorrect
A is entitled to terminate the contract and claim damages immediately.
correct
incorrect
A is entitled to terminate the contract immediately but is not entitled to claim damages until 1 July.
correct
incorrect
*
not completed
.
A Ltd enters a contract with B Ltd, under which B Ltd is to develop a software product specifically tailored for A Ltd for a fixed price. Before B Ltd starts the development or incurs any expense under the contract, A Ltd cancels the contract, alleging a fundamental change of its business strategy. B Ltd ignores A Ltd's cancellation and continues to complete the development of the software. Supposing the performance of the contract will not enhance B Ltd's reputation, which
one
of the following statements
most accurately
summarises the legal position between the parties?
B Ltd is entitled to the contract price because it may freely decide whether to terminate or to affirm the contract following A Ltd's anticipatory breach.
correct
incorrect
B Ltd is not bound to terminate the contract following A Ltd's anticipatory breach because B Ltd has a legitimate interest in affirming the contract and continuing its performance.
correct
incorrect
B Ltd is not entitled to the contract price because it cannot complete its performance of the contract without the cooperation of A Ltd.
correct
incorrect
B Ltd is entitled to the contract price because its performance of the contract does not require the cooperation of A Ltd.
correct
incorrect
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