CONTRACT LAW EXAM REPORTED
QUESTIONS WITH CORRECT
ANSWERS
Contracts for digital content - Answer-1-right to repair or replace
2-right to price reduction (within reasonable time)
3-refund
Contracts for services - Answer-1-right to require repeat of service (reasonable time)
2-right to price reduction (when re performance is impossible)
Conditions and Warranties - Answer-Does the breach deprive innocent party of
substantially the whole benefit of contract?
If yes: condition
Conditions - Answer-1-affirm
2-terminate and damages
Warranties - Answer-Damages
Repudiatory breach - Answer-Breach of condition
Exemption clauses - Answer-Limit or exclude liability in contracts.
The contra preferentem rule states that: - Answer-An ambiguous exclusion clause will
be resolved against the party seeking to rely on it
Unfair Contract Terms Act 1977 - Answer--Regulates contract terms that exclude or limit
liability
-death and personal injury CANNOT be excluded
-loss: valid if reasonable
SGA S13-15 (all but title) - Answer-Valid if reasonable
Reasonable test UT - Answer-test assessed at the time the contract is made not time of
dispute
CRA 2015 and UT - Answer-Part 2 regulates unfair terms
, Exempting terms about goods - Answer-Not binding on the consumer cannot be exempt
1-purpose
2-described
Digital content UT - Answer-Not binding cannot be exempt
1-purpose
2-described
Services UT CRA - Answer-Can be limited but should not prevent consumer from
recovering price paid
Reasonable care and skill
Entering a separate contract to avoid provisions - Answer-Usually prohibited
Misrepresentation - Answer-False statement or a lie in a contract
It's effect: makes the contract voidable
Elements of Misrepresentation - Answer-Unambiguous
False statement
Addressed to the claimant
Induced the claimant to enter the contract
Silence in Misrepresentation - Answer-No duty to disclose
Exceptions to silence. Duty to disclose - Answer--fiduciary relationships
-half truths
-one party is in a stronger position (knows more)
-continuing representation at first it was true but then became false
Categories of Misrepresentation - Answer-fraudulent, negligent, innocent
Fraudulent Misrepresentation - Answer-knowingly made, without belief in its truth
Remedies to FR MISR - Answer-Recession
Damages
Negligent - Answer-False statement
No reasonable grounds to believe in its truth
Remedies for neg misrep - Answer-Rescission
If not possible then damages in lieu of rescission
innocent misrepresentation - Answer-party to a contract does not know that a statement
he or she made is untrue
They had reasonable grounds to belief it
QUESTIONS WITH CORRECT
ANSWERS
Contracts for digital content - Answer-1-right to repair or replace
2-right to price reduction (within reasonable time)
3-refund
Contracts for services - Answer-1-right to require repeat of service (reasonable time)
2-right to price reduction (when re performance is impossible)
Conditions and Warranties - Answer-Does the breach deprive innocent party of
substantially the whole benefit of contract?
If yes: condition
Conditions - Answer-1-affirm
2-terminate and damages
Warranties - Answer-Damages
Repudiatory breach - Answer-Breach of condition
Exemption clauses - Answer-Limit or exclude liability in contracts.
The contra preferentem rule states that: - Answer-An ambiguous exclusion clause will
be resolved against the party seeking to rely on it
Unfair Contract Terms Act 1977 - Answer--Regulates contract terms that exclude or limit
liability
-death and personal injury CANNOT be excluded
-loss: valid if reasonable
SGA S13-15 (all but title) - Answer-Valid if reasonable
Reasonable test UT - Answer-test assessed at the time the contract is made not time of
dispute
CRA 2015 and UT - Answer-Part 2 regulates unfair terms
, Exempting terms about goods - Answer-Not binding on the consumer cannot be exempt
1-purpose
2-described
Digital content UT - Answer-Not binding cannot be exempt
1-purpose
2-described
Services UT CRA - Answer-Can be limited but should not prevent consumer from
recovering price paid
Reasonable care and skill
Entering a separate contract to avoid provisions - Answer-Usually prohibited
Misrepresentation - Answer-False statement or a lie in a contract
It's effect: makes the contract voidable
Elements of Misrepresentation - Answer-Unambiguous
False statement
Addressed to the claimant
Induced the claimant to enter the contract
Silence in Misrepresentation - Answer-No duty to disclose
Exceptions to silence. Duty to disclose - Answer--fiduciary relationships
-half truths
-one party is in a stronger position (knows more)
-continuing representation at first it was true but then became false
Categories of Misrepresentation - Answer-fraudulent, negligent, innocent
Fraudulent Misrepresentation - Answer-knowingly made, without belief in its truth
Remedies to FR MISR - Answer-Recession
Damages
Negligent - Answer-False statement
No reasonable grounds to believe in its truth
Remedies for neg misrep - Answer-Rescission
If not possible then damages in lieu of rescission
innocent misrepresentation - Answer-party to a contract does not know that a statement
he or she made is untrue
They had reasonable grounds to belief it
