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CONTRACT LAW EXAM AND PRACTICE EXAM 2025/2026
NEWEST ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
What must happen for terms to be legally binding? -ANSWERS-
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? -ANSWERS-express,
implied by statute, implied by courts
What are express terms in a contract? -ANSWERS-Terms that
are clearly stated and agreed upon by both parties
How can terms be implied by statute? -ANSWERS-Statutes
automatically include certain terms in contracts, especially for
sales of goods.
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What is the officious bystander test? -ANSWERS-A term is
implied if a bystander suggested it and both parties would agree
it's obvious.
What is business efficacy? -ANSWERS-A term is implied if it's
necessary to make the contract workable.
What is a condition? -ANSWERS-A major term, breach allows
termination and damages.
What is a warranty? -ANSWERS-A minor term - breach allows
damages only.
What is an innominate term? -ANSWERS-A term not clearly
defined as a condition or warranty; court decides based on
seriousness.
How do courts deal with innominate terms? -ANSWERS-They
ask: Has the breach deprived the injured party of the whole
benefit of the contract?
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If yes → treat as a condition (terminate + damages)
If no → treat as a warranty (damages only)
What is an onerous term? -ANSWERS-A harsh, unusual, or
burdensome clause that limits one party's rights or imposes heavy
obligations.
hat is the legal rule regarding onerous terms? -ANSWERS-
Reasonable notice must be given before or at the point of
contracting for an onerous term to be binding.
What is an exclusion clause? -ANSWERS-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? -ANSWERS-it must
be presented in a document that is expected to have contractual
terms
CONTRACT LAW EXAM AND PRACTICE EXAM 2025/2026
NEWEST ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
What must happen for terms to be legally binding? -ANSWERS-
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? -ANSWERS-express,
implied by statute, implied by courts
What are express terms in a contract? -ANSWERS-Terms that
are clearly stated and agreed upon by both parties
How can terms be implied by statute? -ANSWERS-Statutes
automatically include certain terms in contracts, especially for
sales of goods.
, Page |2
What is the officious bystander test? -ANSWERS-A term is
implied if a bystander suggested it and both parties would agree
it's obvious.
What is business efficacy? -ANSWERS-A term is implied if it's
necessary to make the contract workable.
What is a condition? -ANSWERS-A major term, breach allows
termination and damages.
What is a warranty? -ANSWERS-A minor term - breach allows
damages only.
What is an innominate term? -ANSWERS-A term not clearly
defined as a condition or warranty; court decides based on
seriousness.
How do courts deal with innominate terms? -ANSWERS-They
ask: Has the breach deprived the injured party of the whole
benefit of the contract?
, Page |3
If yes → treat as a condition (terminate + damages)
If no → treat as a warranty (damages only)
What is an onerous term? -ANSWERS-A harsh, unusual, or
burdensome clause that limits one party's rights or imposes heavy
obligations.
hat is the legal rule regarding onerous terms? -ANSWERS-
Reasonable notice must be given before or at the point of
contracting for an onerous term to be binding.
What is an exclusion clause? -ANSWERS-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? -ANSWERS-it must
be presented in a document that is expected to have contractual
terms
