Chapter 5 Multiple Choice Questions

. The terms on a signed written document will be incorporated in a contract unless? Please select all that apply.

the person signing the document did not read the terms.

they are substantively unfair.

the signature was obtained by fraud as to their contents.

the signature was obtained by misrepresentation as to the contents.

. The expression 'warranty' legally signifies? Please select all that apply.

a term of a contract as opposed to a representation.

a term of a contract that does not entitle the innocent party to terminate the contract, as opposed to a condition, which does.

a representation, as opposed to a term of a contract.

simply an overpriced service contract from an electrical store.

. The key difference between a representation and a term of the contract is that:

terms are written down on a contractual document but representations are spoken out loud.

breach of a term gives an automatic right to damages, but misrepresentation gives only rise to the equitable right to rescind the contract and a possible right to damages

a representation is given once the contractual terms have been agreed.

a representation is a rough estimate of what the contents of the contract will involve, whereas a term is expressed very carefully.

. The parole evidence rule is circular and says no more than that oral statements are inadmissible when a contract is wholly recorded in writing, but admissible when the contract is part written or wholly unwritten.

True

False

. ……… has two different meanings: (1) a term of the contract rather than a misrepresentation; and 2) a term, the breach of which does not give rise to the right to terminate.

. A collateral contract was used in Shanklin Pier in order to avoid the operation of the privity rule.

True

False

. Terms implied in ……… reflect the parties' non-communicated intentions.

. Termination and rescission for breach mean the same thing and allow a party to elect to bring the future obligations of both parties to an end after certain breach of contract by the other party.

True

False

. Breach of an ……… term will sometimes give the innocent party the option to terminate the contract, but sometimes the innocent party will be limited to damages only, depending upon the consequences of the breach.

. Greek Shippers Ltd contracts with Ferrylines Ltd to provide Ferrylines with a vessel for the coming week. The contract states that the vessel must be delivered ready to sail on Monday morning at 9a.m. and that time is of the essence of the contract. Greek Shippers delivers the vessel at 9.45a.m. on Monday morning and Ferrylines refuses to take delivery of the vessel and refuses to pay the hire charge.

Ferrylines is entitled to terminate the contract because the vessel was delivered late, in breach of a condition.

Ferrylines is entitled to terminate the contract because the vessel was delivered late, in breach of a warranty.

Ferrylines is entitled to terminate the contract because the vessel was delivered late, in breach of an innominate term.

Ferrylines has not communicated its intention to terminate the contract to Greek Shippers, and so will be assumed to have affirmed the contract and therefore will be liable to pay the hire charge.

. The obligation to take care that the wharf was safe was implied into the contract in The Moorcock because it was reasonable to do so.

True

False

. Bob is a joiner and agreed to builds a table for Simon, who has asked if he could build one that will be able to withstand the weight of his new 50-inch plasma TV; Bob has replied that the table will be fine with that sort of weight. The table collapses as soon as Simon puts the TV on it and causes £250 damage to his TV. Simon paid £50 for the table, which was a very cheap price for a table capable of supporting a 50-inch plasma TV.

Simon should rescind the contract for misrepresentation by Bob and recover his money.

Simon should sue Bob for damages for breach of contract and recover the cost of a table that will support the TV (plus the cost of the damage to the TV).

Simon cannot claim damages because Bob has simply made an innocent misrepresentation.

Simon can sue Bob for damages for fraudulent misrepresentation.

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