Terms of the Contract: Master the Building Blocks of Agreements

Question 1

Which of these is NOT a valid way to include terms in a contract?

Accepted Answer

Adding them unilaterally by one party without the other's agreement

Answer

Stating them explicitly in the written agreement

Answer

Implying them based on the surrounding context

Answer

Referencing them in an external document that's incorporated

Question 2

Which of the following is NOT a type of implied term in a contract?

Accepted Answer

Terms implied by fact

Answer

Terms implied by custom

Answer

Terms implied by law

Question 3

Which of the following is NOT a factor considered when determining whether a term is an implied term of law?

Accepted Answer

The parties' subjective intentions

Answer

Custom and usage of the trade

Answer

Course of dealing between the parties

Question 4

In a contract, which term is automatically created by law, even if not explicitly stated by the parties?

Accepted Answer

Implied term

Answer

Express term

Answer

Condition

Answer

Warranty

Question 5

Which of the following is a key characteristic of an express term in a contract?

Accepted Answer

It is explicitly agreed upon by the parties.

Answer

It is included in a written document.

Answer

It arises by implication from the surrounding circumstances.

Answer

It is a condition that is implied by law.

Question 6

A contractual term is considered 'implied by law' when it:

Accepted Answer

Is required by statute or the common law.

Answer

Is essential for the performance of the contract.

Answer

Is customarily included in similar contracts.

Answer

Is agreed upon by the parties after the initial formation of the contract.

Question 7

Which of the following is NOT recognized as a type of contractual condition?

Accepted Answer

Innominate term

Answer

Express condition

Answer

Warranty

Answer

Implied condition

Question 8

The primary purpose of the parol evidence rule is to:

Accepted Answer

Exclude extrinsic evidence that could alter or contradict the terms of a written contract.

Answer

Allow extrinsic evidence to be used to clarify or supplement the terms of a written contract.

Answer

Require all contracts to be in writing to be enforceable.

Answer

Make oral contracts unenforceable.

Question 9

Which of the following is **not** a type of implied term in a contract?

Accepted Answer

Terms implied by agreement

Answer

Terms implied by statute

Answer

Terms implied by custom

Answer

Terms implied by fact

Question 10

Which type of implied term is NOT created by the parties involved in a contract?

Accepted Answer

Terms implied by the court

Answer

Terms implied by law

Answer

Terms implied by custom

Answer

Terms implied by the parties' course of conduct

Question 11

What is the key difference between express terms and implied terms in a contract?

Accepted Answer

Express terms are agreed upon by the parties, while implied terms are imposed by law.

Answer

Express terms must be written, while implied terms can be either written or oral.

Answer

Express terms require consideration for enforceability, while implied terms do not.

Question 12

How are express terms created in a contract?

Accepted Answer

When parties mutually agree in writing or through conduct that explicitly expresses their intentions

Answer

When parties verbally agree and later document it in writing

Answer

When parties reach an oral agreement and their conduct implies the term

Question 13

Which of the following is NOT a type of contract term?

Accepted Answer

Representations

Answer

Express terms

Answer

Implied terms

Answer

Conditions

Question 14

Which of the following is NOT a type of express term in a contract?

Accepted Answer

Terms implied by the court

Answer

Written terms

Answer

Oral terms

Question 15

Which of these is NOT a way to imply a term in a contract?

Accepted Answer

Express agreement

Answer

Statutory implication

Answer

Implication by custom

Answer

Implication from the parties' conduct

Question 16

Which of the following is NOT a type of contractual term?

Accepted Answer

Representations

Answer

Express terms

Answer

Implied terms

Answer

Conditions

Question 17

Which of the following is a characteristic of an express term?

Accepted Answer

It is agreed upon by the parties.

Answer

It is only enforceable if written down.

Answer

It is presumed by the court's interpretation.

Answer

It is implied by law.

Question 18

What is the legal consequence of a breach of warranty?

Accepted Answer

The innocent party can claim damages.

Answer

The contract is automatically terminated.

Answer

The non-breaching party must continue to perform their obligations.

Question 19

Which of the following is a method for interpreting an ambiguous term in a contract?

Accepted Answer

Consider the surrounding text and purpose of the contract.

Answer

The term is void for vagueness.

Answer

Reliance on previous case law

Question 20

What is the effect of an exemption clause?

Accepted Answer

It excludes or limits the liability of one or both parties for certain breaches.

Answer

It creates a new obligation for the parties.

Answer

It voids the contract.

Question 21

What is the doctrine of frustration?

Accepted Answer

It discharges a contract when an unforeseen event makes performance impossible or radically different.

Answer

It allows a party to terminate a contract without liability.

Question 22

What is the purpose of a collateral contract?

Accepted Answer

To create a separate, legally binding agreement alongside a main contract.

Answer

To modify the terms of an existing contract.

Answer

To terminate a contract.

Question 23

Which of the following factors is NOT considered in determining the reasonableness of an exemption clause?

Accepted Answer

The size of the business.

Answer

The nature of the goods or services.

Answer

The foreseeability of the loss.

Answer

The bargaining power of the parties.