CONTRACT LAW EXAM AND
PRACTICE EXAM QUESTIONS 2025
NEWEST ACTUAL EXAM COMPLETE
EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
What must happen for terms to be legally binding? -
....ANSWER...They must be legitimately incorporated
into the contract (clearly communicated and agreed
upon before or at the time of agreement).
What are the 3 types of contract terms? -
....ANSWER...express, implied by statute, implied by
courts
What are express terms in a contract? -
....ANSWER...Terms that are clearly stated and agreed
upon by both parties
,How can terms be implied by statute? -
....ANSWER...Statutes automatically include certain
terms in contracts, especially for sales of goods.
What is the officious bystander test? - ....ANSWER...A
term is implied if a bystander suggested it and both
parties would agree it's obvious.
What is business efficacy? - ....ANSWER...A term is
implied if it's necessary to make the contract workable.
What is a condition? - ....ANSWER...A major term,
breach allows termination and damages.
What is a warranty? - ....ANSWER...A minor term -
breach allows damages only.
What is an innominate term? - ....ANSWER...A term
not clearly defined as a condition or warranty; court
decides based on seriousness.
How do courts deal with innominate terms? -
....ANSWER...They ask: Has the breach deprived the
injured party of the whole benefit of the contract?
,If yes → treat as a condition (terminate + damages)
If no → treat as a warranty (damages only)
What is an onerous term? - ....ANSWER...A harsh,
unusual, or burdensome clause that limits one party's
rights or imposes heavy obligations.
hat is the legal rule regarding onerous terms? -
....ANSWER...Reasonable notice must be given before
or at the point of contracting for an onerous term to be
binding.
What is an exclusion clause? - ....ANSWER...A term in
a contract that seeks to exclude or limit liability for
certain breaches, damage, or loss.
what is the rule behind an exclusion clause? -
....ANSWER...it must be presented in a document that
is expected to have contractual terms
What type of clause is always void under UCTA? -
....ANSWER...Any clause that seeks to exclude or limit
liability for death or personal injury caused by
negligence is automatically void under Section 2(1).
, What types of clauses are subject to the reasonableness
test under UCTA? - ....ANSWER...s.2(2) - Property
damage due to negligence
s.3 - Breach of contract under standard written terms
s.6 / s.7 - Breach of implied terms under the Sale of
Goods Act
What is the reasonableness test under s.11 UCTA? -
....ANSWER...A term must be fair and reasonable to
include, based on what the parties knew or should have
known at the time the contract was made.
What guidelines are used to assess reasonableness? -
....ANSWER...Bargaining power of the parties
Availability of alternatives without the clause
Whether the term was known or ought to have been
known
Prior dealings or trade customs
Whether goods were made to special order
Whether compliance with any condition was reasonable
PRACTICE EXAM QUESTIONS 2025
NEWEST ACTUAL EXAM COMPLETE
EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
What must happen for terms to be legally binding? -
....ANSWER...They must be legitimately incorporated
into the contract (clearly communicated and agreed
upon before or at the time of agreement).
What are the 3 types of contract terms? -
....ANSWER...express, implied by statute, implied by
courts
What are express terms in a contract? -
....ANSWER...Terms that are clearly stated and agreed
upon by both parties
,How can terms be implied by statute? -
....ANSWER...Statutes automatically include certain
terms in contracts, especially for sales of goods.
What is the officious bystander test? - ....ANSWER...A
term is implied if a bystander suggested it and both
parties would agree it's obvious.
What is business efficacy? - ....ANSWER...A term is
implied if it's necessary to make the contract workable.
What is a condition? - ....ANSWER...A major term,
breach allows termination and damages.
What is a warranty? - ....ANSWER...A minor term -
breach allows damages only.
What is an innominate term? - ....ANSWER...A term
not clearly defined as a condition or warranty; court
decides based on seriousness.
How do courts deal with innominate terms? -
....ANSWER...They ask: Has the breach deprived the
injured party of the whole benefit of the contract?
,If yes → treat as a condition (terminate + damages)
If no → treat as a warranty (damages only)
What is an onerous term? - ....ANSWER...A harsh,
unusual, or burdensome clause that limits one party's
rights or imposes heavy obligations.
hat is the legal rule regarding onerous terms? -
....ANSWER...Reasonable notice must be given before
or at the point of contracting for an onerous term to be
binding.
What is an exclusion clause? - ....ANSWER...A term in
a contract that seeks to exclude or limit liability for
certain breaches, damage, or loss.
what is the rule behind an exclusion clause? -
....ANSWER...it must be presented in a document that
is expected to have contractual terms
What type of clause is always void under UCTA? -
....ANSWER...Any clause that seeks to exclude or limit
liability for death or personal injury caused by
negligence is automatically void under Section 2(1).
, What types of clauses are subject to the reasonableness
test under UCTA? - ....ANSWER...s.2(2) - Property
damage due to negligence
s.3 - Breach of contract under standard written terms
s.6 / s.7 - Breach of implied terms under the Sale of
Goods Act
What is the reasonableness test under s.11 UCTA? -
....ANSWER...A term must be fair and reasonable to
include, based on what the parties knew or should have
known at the time the contract was made.
What guidelines are used to assess reasonableness? -
....ANSWER...Bargaining power of the parties
Availability of alternatives without the clause
Whether the term was known or ought to have been
known
Prior dealings or trade customs
Whether goods were made to special order
Whether compliance with any condition was reasonable
